2. Who is an Unpaid Seller?Who is an Unpaid Seller?
Seller of the goods who has not been
paid or tendered the whole of the
price or
One who has received payment in the
form of bill of exchange or other
negotiable instrument which has been
dishonored.
3. Rights of an Unpaid SellerRights of an Unpaid Seller
Rights of an unpaid seller against the good
Right of Lien
Right of Stoppage in Transit
Right of Resale
Rights of an unpaid seller against the buyer
personally
Suit for price
Suit for damages for non-acceptance of delivery
Suit for interest or special damages
4. RIGHT OF LIENRIGHT OF LIEN
A lien is a right to retain POSSESSION of
goods until payment of the price
5. Right of Lien of Unpaid Seller –Sec. 47Right of Lien of Unpaid Seller –Sec. 47
• Applicability:
Where the goods have
not been sold on credit
Goods sold on credit,
credit-term expires
Buyer becomes
insolvent, seller
possesses goods
6. Right of Stoppage in Transit-SectionRight of Stoppage in Transit-Section
5050
This is just an extension of Right of lien
and this means the right of stopping the
goods while they are on the way to the
buyer’s place
7. Right of Stoppage in Transit-Sec 50
Essentials :
Seller must be partially/wholly unpaid
Buyer becomes insolvent
Goods must be in transit
8. Right of Resale of unpaid sellerRight of Resale of unpaid seller
-Section 54-Section 54
• Unpaid seller can resale his goods after
executing his Right of Lien on retaining his
goods or after exercising his Right to
Stoppage in Transit upon insolvency of the
buyer under some circumstances.
9. Circumstances for Resale:Circumstances for Resale:
Where goods are perishable
Where seller gives notice to buyer of his
intention to resell and buyer does not pay the
price within a reasonable time after the notice
Where seller has expressly reserved his right
of resale in case of default
10. Sec. 55 & 56 – Other RightsSec. 55 & 56 – Other Rights
Sue the buyer for price of goods
Seller may sue buyer for damages for
wrongfully neglecting/refusing to
accept the goods
Recover interest from buyer where
there is a specific agreement to that
effect. If there is no agreement, seller
may charge interest on price when
it becomes due
