Sivaramakrishnan S-245111200 case study.pptx

Legal aspects of business

1. Case Study: Armstrong (vs) A. W. H. Maintenance Ltd (2003) Sivaramakrishnan S (245111200)

2. Seller and Rights of unpaid seller Seller: Under the Sale of Goods Act, 1930, a seller is someone who sells or agrees to sell goods. The Act defines a seller in section 2(13). The Act also states that the buyer and seller are identified by their agreement to buy or sell, even if the goods are not actually transferred. Rights of unpaid Seller: A seller of goods is deemed to be unpaid seller when:-  The whole of the price has not been paid or tendered;  Against goods Right of lien(Sec.47-49), Right of stoppage in transit(Sec.50-52), Right of resale(Sec.54) Against buyer personally  (Suit for price, Suit for damages)

3. Introduction A case study of the rights of an unpaid seller focuses on the legal protections and remedies available to sellers when a buyer has not paid for goods delivered.  A real-life example can be illustrated through the legal principles outlined in contract law and the Sale of Goods Act. In this case, Armstrong, the seller, entered into a contract to supply materials to A. W. H. Maintenance Ltd. The goods were delivered, but the buyer failed to pay for them.  Armstrong, having followed all contractual procedures, sought legal redress for the non-payment.

4. Legal issue and key legal principles The issue was whether the unpaid seller had the right to stop goods in transit and/or exercise their right to a lien, as outlined under the Sale of Goods Act 1979 (UK). The seller also wanted to know whether they could reclaim the goods . Key Legal Principles: Under the Sale of Goods Act, an unpaid seller has several rights, including: 1. Right of Lien The seller can retain possession of the goods until payment is made, as long as they still possess them. 2. Right to Stop Goods in Transit  If the goods are still in transit, the unpaid seller can instruct the carrier to stop the goods and return them.

5. 3. Right to Resell the Goods  If the buyer defaults on payment, the seller can resell the goods and claim any difference between the contract price and the resale price. 4. Right to Sue for the Price The unpaid seller may file a lawsuit to claim the price of the goods. key legal principles (contd...)

6. Court Decision In this case, the court ruled in favor of Armstrong, the unpaid seller. The seller was entitled to exercise the right to stop goods in transit and also had the right to resell the goods.  Armstrong could recover the amount owed from the buyer, including interest and damages, as the buyer had breached the contract by not making payment.

7. Conclusion This case demonstrates the legal remedies available to an unpaid seller. Under the Sale of Goods Act, an unpaid seller has the right to retain possession of the goods, stop them in transit, resell them, and seek legal redress for non-payment. The key takeaway from this case is that the seller’s right to reclaim goods is well-supported under the law, even after the goods have been delivered.