Rights of an Unpaid Seller

1. Rights of an Unpaid Seller

2. Definition of Unpaid Seller • He must be unpaid and the price must be due • Right of action • A bill of exchange dishonoured

3. Rights of Unpaid Seller • Against the goods • Against the buyer

4. Rights of Unpaid Seller Against the goods • Where the property in goods is not transfered • Right of lien Conditions • Must have possession of goods • Must not expressly exclude the right of lien • Only for the price • Part delivery of goods

5. Rights of Unpaid Seller Against the goods Contd • Court decree for price • Termination of lien • Delivers the goods to carrier for transmission to buyer • Buyer obtains possession • Right of stoppage in transit • When the buyer becomes insolvent • When goods are in transit

6. Rights of Unpaid Seller Against the goods Contd • Duration of transit When it comes to an end • Buyer or agent obtains delivery • When the carrier acknowledges that he his holding for the buyer How it operates? • By actual possession of goods • Giving notice to the carrier

7. Rights of Unpaid Seller Against the goods Contd • Notice of stopping • To the person in possession • To the principal • Distinction between right of lien and right of stoppage in transit • Right to stoppage only when insolvent • Right of lien only in actual possession or constructive possession. Right to stoppage when goods are with middle men

8. Rights of Unpaid Seller Against the goods Contd • Right of re-sale • Where goods are of perishable nature • Gives notice to buyer • When property in goods are transferred • Right to withhold • Right to stoppage in transit

9. Rights of Unpaid Seller Against the buyer personally • Suit for price • Suit for damages for non-acceptance • Breach of Contract • Suit for interest

10. Rights of Buyer • Suit for damages • Suit for specific performance • Suit for breach of warranty • Suit for repudiation of contract • Suit for interest