1.

Discuss in detail the rights of an unpaid seller against the goods.

Answer»

A seller is deemed to be an unpaid seller when : 

(a) the whole of the price has not been paid or

(b) a bill of exchange or other negotiable instrument given to him has been dishonoured. Rights of an Unpaid Seller against the Goods: Where the Property in the Goods has Passed to the Buyer:

Right of Lien: An unpaid seller has a right to retain the goods till he receives the price. But to exercise this lien- 

(i) He must be in possession of goods 

(ii) The goods must have been sold without any condition

  • Right of Stoppage in Transit: Where the seller has delivered the goods to a carrier or other bailee for the purpose of transmission to the buyer, but the buyer has not acquired them, then the seller can stop the goods. 
  • Right of Resale: The unpaid seller can resell the goods

(iii) Where they are of a perishable nature or

(iv) Where the seller has expressly reserved the right of resale in the contract itself.


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