Sales of Goods Act, 1930 - Unpaid Seller

As per Section 45 of the Sale of Goods Act, 1930 has defined an unpaid seller as follows:

The seller of goods is deemed to be an unpaid seller
When the whole of the price has not been paid or tendered; 
                            or
When a bill of exchange or other negotiable instrument has been received as conditional payment and it has been dishonoured.

Study Online Notes for Rights of Unpaid Seller

UNPAID SELLER’S RIGHTS AGAINST THE GOODS
Right of lien
Right of stoppage of goods-in-transit; and
Right of resale

UNPAID SELLER’S RIGHTS AGAINST THE BUYER PERSONALLY
Right to file a suit for price
Right to file a suit for damages
Right to file a suit for interest

Study Online Notes for Rights of Unpaid Seller

UNPAID SELLER’S RIGHTS AGAINST THE GOODS
RIGHT OF LIEN
 'Lien' means to hold the possession of the goods until amount due in respect of the goods is not paid. Unpaid seller has the right of lien over the goods until the full price is paid or tendered to him by the buyer or his duly authorized agent. This right is available to the unpaid seller of the goods who is in possession of them where

If the goods have been sold to the buyer without any stipulation as to credit;
If the goods have been sold on credit, but the term of credit has expired;
If  the buyer becomes insolvent

RIGHT OF STOPPAGE OF GOODS IN TRANSIT
If after delivering the goods to the carrier, the buyer becomes insolvent, the seller has another right i.e. the right to stop the goods-in-transit. Seller can prevent the goods from being delivered to the buyer or to his agent. This right simply means the right of stopping the goods while they are in transit to the buyer or his duly authorized agent. This right arises only when the lien is lost which means that goods are no longer in procession of the seller or the buyer. By exercising this right, the unpaid seller regains possession over the goods.

RIGHT TO RESELL THE GOODS
An unpaid seller may resell the goods in case
  • where goods are perishable in nature and any delay would result in loss of their value. 
  • Where the seller are reserved the right to resell the goods.
  • Where seller informs buyer his intention to resell the goods and buyer does not tenders the price.

Study Online Notes for Rights of Unpaid Seller

UNPAID SELLER’S RIGHTS AGAINST THE BUYER PERSONALLY
Right to file a suit for price
Right to file a suit for damages
Right to file a suit for interest

These online MCQ Mock tests and MCQ questions includes all main concepts of the chapter ( Rights of Unpaid Seller) in CS Foundation, Business Environment and Entrepreneurship Computer Based Exam.


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