Rights of unpaid seller
SUBJECT: BUSINESS LAW CLASS:MMRB
SEMEster:6
UNPAID SELLER:
ACCORDING to sec45(1) of sale of goods act, seller of the goods is deemed
to be unpaid seller:
(A) WHEN whole of the price has not been tendered
or paid, or
(B) WHEN bill of exchange or negotiable instrument has been received
as a conditional payment.
section45(2) says The term seller
include any person who is in position
of seller ,agent
who himself pay or is directly responsible for the price 0r an agent of
the seller to whom bill
of
lading has been endorsed
,or a consignor or agent who himself
paid or is directly responsible for the price
AND the seller of goods can be
deemed to be an unpaid seller:
1. if the price become due but they r not paid.
HE Must have an immediate right of action
for the price.
2. A BILL of exchange
or negotiable instrument was received but was dishonored.
RIGHTS OF UNPAID
SELLER
UNPAID Seller
has RIGHT:
1. RIGHTS against the goods
2. RIGHTS against the buyer personally
Rights against the goods:
can be discussed under two heads:
1.
WHEN property in goods has
passed 2.when property in goods has not passed
When property
in goods has passed:
following 3 rights are available to the unpaid
seller if property
in goods has passed to the buyer;
(a)RIGHT OF LIEN
(b)RIGHT OF STOPPAGE
IN TRANSIT (C)RIGHT OF RESALE
RIGHT OF LIEN:
Right of lien : is the right
to retain the goods until whole of the
price of goods is paid or tendered. Right of lien can be
excercised:
where goods have been sold without
any stipulation to credit.
WHERE goods have been sold on credit but period of credit has expired.
Where buyer has become insolvent, even though the period of credit has not yet expired RULES
regarding lien:
1
lien can be excercised if the seller is in possession of goods.
unpaid seller can excercise the right of lien even
if the documents of tittle or property in goods have been transferred. if part
delivery of goods is made ,the seller can excercise the
right of lien on the remainder .however if the seller has delivered part of goods so as
to show an intension to wave the
lien.
2.
THE UNPAID SELLER can excercise the right of lien only for price and not for any othr charges
3.
right of lien can be excercised by seller only
4.
UNPAID seller can ecercise
the right of lien even if he is in possession of goods as bailee or agent
5. UNPAID seller cannot
excercise the right
of lien if he has expressly waived
his right f lien.
6.
UNPAID seller does not loses the right of lien even where unpaid
seller has obtained
decree for the price of goods
2 RIGHT OF STOPPAGE
IN TRANSIT:
Right of stoppage in transit is a right of stopping the goods in
transit after the unpaid seller has parted with the goods.
if the goods r in transit he has aright
to resume the possession of goods as long as they are in
the course of transit .this right is available to the unpaid seller only when
the buyer become insolvent and when the
goods r in transit.
UNPAID seller can excercise the right of lien either-
BY taking actual
possession of goods.
BY GIVING notice of claim to the carrier or other bailee
in possession of goods. And notice can
be given either to the principal or to the person in possession of goods.
DURATION OF TRANSIT:GOODS are deemed to be in course of transit from
the time they r delivered to carrier or other bailee
for the purpose of transmiision to the buyer.
the carrier may hold the goods as 1. BUYER'
S AGENT 2. SELLer's agent 3.AS AN INDEPENTENT .IN 2 AND 3 HE CAN EXCERCISE
THE right of
stoppage in transit.BUT the transit comes to an end
1 if buyer or his agent
obtain the delivery
before they arrive
at the destination
2
if after arrival at the appointed destination the carrier
acknowledge the buyer
or his agent that he hold the goods on his behalf
3
where carrier wrongfully refuse
to deliver the goods to buyer .
3RIGHT OF RESALE: unpaid
seller can resell the goods if the goods r of perishable nature
if seller
give the notice
to buyer of his intention
to resell and the buyer does not pay within the reasonable time
if on resale there is loss the
seller he can recover from the buyer and
if profit must handover to the buyer
RIGHTS OF WITHHOLDING DELIVERY:
WHEN PROPERTY IN GOODS HASNOT
PASSED to the buyer,
unpaid seller in addition to other remedies
has a right of with holding delivery
similar coextensive with the right
of lien
RIGHTS OF AN UNPAID
SELLER AGAINST THE BUYER PERSONALLY
1SUIT FOR PRICES: WHERE property has passed, the seller can sue for the price
2
SUIT FOR DAMAGES FOR NON ACCEPTANCE:WHERE The buyer wrongfully refuse to accept
and pay for goods, seller may
sue him for non acceptance
3
Repudiation of the contract
due date by buyer: the seller can treat the contract as subsisting and wait till delivery or he may treat
the contract as rescinded and sue
for damages
4
suit for interest: where there is a specific agreement between seller and buyer as tto interest
on the price of the goods from the date the payment become due
,seller can recover the interest from the buyer
Comments
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From: shashi kumar p
College: GFGC gauribidanur.
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