Unpaid seller

Group 17 Amit Sarda Nishank Sethi Pooja Shrivastava Priya Zacharia Shouvik Mazumdar Swati Karle

Unpaid Seller & his rights ‡ ‡ Has not been paid or tendered the whole of the price OR Has received payment in the form of bill of exchange or negotiable instrument which is dishonored. Rights of an unpaid seller Property in the goods has passed Property in the goods has not passed Lien Stoppage in transit Resale Withholding delivery Other Rights .

‡ Termination of right of lien: ‡ When he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal of the goods. . buyer becomes insolvent and the seller is in possession of the goods. ‡ ‡ When the buyer or his agent lawfully obtains possession of goods When the seller waives his right of lien.Right f Lien ‡ Right to retain possession of the goods until the claim is satisfied where: ‡ ‡ ‡ goods have been sold without any stipulation as to credit goods have been sold on credit and the term of credit has expired.

to redelivery the goods to the seller or according to his directions. they are said to be in transit. Loss of right of stoppage in transit: ‡ If the buyer or his agent obtains delivery of the goods from carrier or other bailee ‡ If after arrival of the goods at the appointed destination.Right f st ppage in transit When goods are in the hands of a middleman. the carrier or other bailee acknowledges to the buyer that he holds the goods on his behalf ‡ If the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent ‡ A part delivery of the goods has been made to the buyer or his agent in that behalf . Essentials to exercise right of stoppage in transit: ‡ Seller must be unpaid wholly or partly ‡ Buyer must have become insolvent ‡ Goods must be in transit How is stoppage in transit effected?  By taking actual possession of the goods  By giving notice of his claim to the carrier or other bailee in whose possession the goods are.

when the seller has parted with the possession.e. though he is able to pay Seller must have actual or constructive possession of the goods Right of stoppage in transit Is exercised to regain possession Can be exercised only when buyer becomes insolvent Begins when the right of lien ends i.Lien v/s St ppage in transit Right of Lien Is exercised to retain possession Can be exercised if buyer does not pay. Commences with the parting of possession of goods St ppage in transit Lien Ends with parting of possession of goods .

Right f resale ‡ Reselling of goods can be exercised o Where the goods are of perishable nature o Where the seller gives notice to the buyer of his intention to resell the goods. and the buyer does not pay or tender the price within a reasonable time after the notice o Where the seller has expressly reserved his right of resale in case the buyer make default .

. o Where goods are shipped/delivered to a railway administration for carriage and the goods are delivered to the order of the seller or his agent o Where the seller transmits to the buyer bill of exchange for the price with bill of lading and buyer fails to honor the bill of exchange and wrongfully retains the bill of lading.Pr perty f g ‡ ‡ ds n t passed Right of with-holding delivery Reservation of right of disposal: o Where seller imposes certain conditions and until the conditions are fulfilled. ‡ ‡ Sec 55 Sue the buyer for the price of the goods Sec 56 Seller may sue the buyer for damages for wrongfully neglecting or refusing to accept the goods ‡ Recover interest from the buyer where there is specific agreement to that effect.