The document discusses the rights of an unpaid seller under Indian law. It defines an unpaid seller as one who has not received full payment for goods sold, including when payment was made by a dishonored negotiable instrument. An unpaid seller has the right of lien, allowing them to retain possession of goods until payment. They also have the right of stopping goods in transit if the buyer becomes insolvent. The unpaid seller can sue the buyer for the price of goods, damages for non-acceptance, or special damages and interest if terms were agreed upon.

1. By : Deepika
Assistant
Professor

2.  A seller is deemed to be an unpaid seller
when-
1) The whole of the price has not been paid or
tendered.
2) A bill of Exchange or other negotiable
instrument has been received as a
conditional payment, and the condition on
which it was received has not been fulfilled
by reason of the dishonour of the instrument
or otherwise.

4.  A lien is the right to retain the possession of
goods until payment of the price. It is
available to the unpaid seller where-
 A) Goods have been sold without any
stipulation as to credit
 B) The goods have been sold on credit, but
the term of credit has expired
 C) The buyer becomes insolvent

5.  If seller loses the possession of the goods, he
loses the right of lien also.
 The lien depends on actual possession and
not on title.
 The lien can be exercised only for the price
 Where the unpaid seller has made part
delivery of the goods, he may exercise his
right of lien on the remainder.

6.  It is a right of stopping the goods in transit
after the unpaid seller has parted with the
possession of the goods. He has further right
of resuming possession of the goods as long
as they are in the course of transit, and
retaining possession until payment of the
price. It is available only-
1) When the buyer becomes insolvent
2) When the goods are in transit

7.  1) Where the goods are of perishable nature
 2) where unpaid seller gives notice to the
buyer of his intention to re-sell the goods
and the buyer does not within the reasonable
time pay the price.

8.  Suit for price – Where the property has passed
or not and the buyer wrongfully neglects to
pay for the goods, the seller may sue him for
the price of the goods.
 Suit for damages for non- acceptance –
Where the buyer wrongfully neglects or
refuses to accept and pay for the goods, the
seller may sue him for non acceptance.

9. Suit for special damages and interest – Where
there is a specific agreement between the seller
and the buyer as to interest on the price of the
goods, the seller may recover the interest.