Rights Of Unpaid Seller

Introduction

The seller is considered as an unpaid seller

when:
a- When the whole price has not been
paid and the seller has an immediate right of
action for the price.

b- When Bills of Exchange or other

negotiable instrument has been received as
conditional payment, and the pre-requisite
condition has not been fulfilled by reason of
the dishonor of the instrument or
otherwise. For instance, X sold some goods
to Y for $50 and received a cheque. On
presentment, the cheque was dishonored by
the bank. X is an unpaid seller.

•Seller also includes a person who is in a

position of a seller i.e agent, consignor who
had himself paid or is responsible for the
price.
 •1.Suit for price

•2.Suit for interest and special

damages Here, suit can be filed for
Rights of interest and special damages. Where,
interest will be paid on the amount of
unpaid the deal between seller and buyer on
seller the choice/ discretion of the court.
against
•3.Suit for damages for non-
buyer acceptance Suit can be filed against the
buyer if the buyer wrongfully refuses
to accept the goods.

•4.Suit for breach of contract

 Rights of unpaid seller against goods

1.Right of possession/ lien- If the buyer fails to pay the price within the
decided time, then unpaid seller has the right to keep the goods in his
possession and he can refuse to deliver the goods until the due payment
is paid.

2.Right of stoppage of goods in transit If a buyer fails to pay

the price within the decided time, then unpaid seller has the
right to stop the goods in transit.

3.Right of resale -The unpaid seller has the

right to resell the goods.