RIGHTS OF AN UNPAID SELLER
The seller of the goods is deemed to be an “unpaid-seller” where :-
a) The whole of the price has not been paid or tendered or
b) When a bill of exchange or any other negotiable instrument has been given as conditional payment but the same has been dishonored.
An unpaid vendor has the right of withholding the delivery of goods when the property in goods has not passed to the buyer.
Rights of an unpaid seller against the goods:
He has the rights when the property in goods has passed to the buyer:
1. Right of Lien:
The unpaid vendor who is in possession of the goods, can retain such possession until the price is paid or rendered. And if the goods ...view middle of the document...
This right is available when the goods in transit and when the buyer becomes bankrupt.
Following are the rules regarding duration of transit:
a) Goods are deemed to be transit so long as the buyer or his agent does not take delivery of the goods.
b) The transit is at an end, when the buyer or his agent obtains delivery before the arrival of the goods at their destination.
c) The transit is at an end, if the carrier or other bailee acknowledges to the buyer after the arrival of the goods at the destination that he holds the possession of goods as a bailee for the buyer.
d) The goods are in transit, if the buyer or his agent rejects the goods.
e) The transit is at an end if the carrier or other bailee wrongfully refuses to deliver the goods to the buyer.
3. Right of Re-sale:
The unpaid vendor can re-sell the goods:-
a) Without notice to the buyer if the goods are perishable goods.
b) With notice to the buyer of his intention to re-sell, if the goods are not perishable.
He can retain the profit resulting from such re-sell and claim damages from the original buyer for loss if any. But if he does not give notice to the buyer of his intention to re-sell the...