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    Ayushi Bhardwaj
    An unpaid seller is defined as a seller that has not been paid the full price of goods sold. An unpaid seller has rights against both the goods and the buyer. Against goods, the unpaid seller has the rights of lien, stoppage in transit, resale, and withholding delivery. Against the buyer, the unpaid seller can sue for the price, damages for non-acceptance, interest, and special damages.

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    BL Presentation

    Uploaded by

    Ayushi Bhardwaj
    9 views7 pages
    An unpaid seller is defined as a seller that has not been paid the full price of goods sold. An unpaid seller has rights against both the goods and the buyer. Against goods, the unpaid seller has the rights of lien, stoppage in transit, resale, and withholding delivery. Against the buyer, the unpaid seller can sue for the price, damages for non-acceptance, interest, and special damages.

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    An unpaid seller is defined as a seller that has not been paid the full price of goods sold. An unpaid seller has rights against both the goods and the buyer. Against goods, the unpaid seller has the rights of lien, stoppage in transit, resale, and withholding delivery. Against the buyer, the unpaid seller can sue for the price, damages for non-acceptance, interest, and special damages.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    9 views7 pages

    BL Presentation

    Uploaded by

    Ayushi Bhardwaj
    An unpaid seller is defined as a seller that has not been paid the full price of goods sold. An unpaid seller has rights against both the goods and the buyer. Against goods, the unpaid seller has the rights of lien, stoppage in transit, resale, and withholding delivery. Against the buyer, the unpaid seller can sue for the price, damages for non-acceptance, interest, and special damages.

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    © All Rights Reserved
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    of 7

    RIGHT OF

    UNPAID SELLER

    NAME: AYUSHI BHARDWAJ


    COURSE: BCOM HONS
    ENROLLMENT: 02221188821
    WHO IS AN UNPAID SELLER?
    The Sale of Goods Act, 1930 (hereinafter referred to as the "Act") defines an unpaid seller as a seller that has
    not been paid the full price of the goods that have been sold or that has received a bill of exchange or other
    negotiable instrument as conditional payment, and the condition on which it was received has not been
    fulfilled.
    Rights of an Unpaid Seller may be against the goods as well as for the buyer personally
    RIGHTS OF UNPAID SELLER
    AGAINST GOODS
    An unpaid seller's right against the goods are-
    (1) A lien or right of retention
    (2) The right of stoppage in transit.
    (3) The right of resale.
    (4) The right to withhold delivery.

    (1) Lien -An unpaid seller in possession of goods sold, may exercise his lien on the goods, i.e., keep the
    goods in his possession and refuse to deliver them to the buyer until the fulfilment or tender of the
    price in cases where-

    • the goods have been sold without stipulation as to credit; or


    • the goods have been sold on credit, but the term of credit has expired; or
    • the buyer becomes insolvent.
    (2) Stoppage in transit-The right of stoppage in transit is a right of stopping the goods while they are in
    transit, and retaining possession until payment of the price.
    The right to stop goods is available to an unpaid seller­
    i. when the buyer becomes insolvent; and
    ii. the goods are in transit.
    The right to stop in transit may be exercised by the unpaid seller either by taking actual possession of the goods or by
    giving notice of the seller's claim to the carrier or other person having control of the goods. On notice being given to
    the carrier he­must redeliver the goods to the seller, who must pay the expenses of the redelivery.

    (3) Right of re-sale- The unpaid seller may re-sell-


    • where the goods are perishable;
    • where the right is expressly reserved in the contract;
    • where in exercise of right of lien or stoppage in transit, the seller gives notice to the buyer of his intention to re-sell, and
    the buyer, does not pay or tender the price within a reasonable time.

    If on a re-sale, there is a deficiency between the price due and amount realised, the re-seller is entitled to recover it from the
    buyer. If there is a surplus, he can keep it. He will not have these rights if he has not given any notice and he will have to
    pay the buyer any profits.
    (4) Rights to withhold delivery- If the property in the goods has passed, the unpaid seller has right as
    described above. If, however, the property has not passed, the unpaid seller has a right of withholding delivery.
    An unpaid seller may sue the buyer for the price of the goods in case of breach of contract where the property in the
    goods has passed to the buyer or he has wrongfully refused to pay the price according to the terms of the contract.
    The seller may sue the buyer even if the property in the goods has not passed
    where the price is payable on a certain day.
    Under Section 56, the seller may sue the buyer for damages or breach of contract where the buyer wrongfully neglects or
    refuses to accept and pay for the goods.
    RIGHTS OF UNPAID
    SELLER AGAINST BUYER
     Suit for price - If the goods have passed to the buyer and buyer refuse to pay the price, the seller
    can sue for price.
    Example - "M" sells the goods to "Y" for Rs. 5 lac. "Y" refuses to pay. "M" can sue for price.

     Suit for damages for non acceptance-If buyer refuses to accept and pay for the goods, the
    seller has the right to sue him for damages non-acceptance. He can recover only damages and not
    full price.

     Suit for interest & special damages-The unpaid seller can recover the reasonable interest on
    the unpaid price of goods sold. The seller can also sue the buyer for special damages where both
    the parties are aware of such loss at the time of contract.

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