Rights of an Unpaid seller of India.pptx

Seller

1. Rights of an Unpaid seller By : Deepika Assistant Professor

2. A seller is deemed to be an unpaid seller when- The whole of the price has not been paid or tendered. 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. Who is an unpaid seller?

3. 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 Right of lien

4. 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. Rules regarding Lien

5. 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- When the buyer becomes insolvent When the goods are in transit Right of stoppage in transit

6. 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. Right of re-sale

7. 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. Rights of an unpaid seller against the buyer personally

8. 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.