Discuss the rights of an unpaid seller against the goods.
Meaning of unpaid seller
An unpaid seller is a seller who has not received the full price of the goods, either because the payment was not made or because a negotiable instrument (like a check or bill of exchange) given as payment has been dishonored. Under the Sale of Goods Act, an unpaid seller has certain rights against the goods and the buyer. Unpaid seller rights against buyer
Rights of an Unpaid Seller Against the Goods and property
The unpaid seller has the following rights:
1. Right of Lien (Section 47-49)
- If the seller is still in possession of the goods, they can retain them until full payment is made.
- This right exists when the goods are sold without a credit agreement or when the credit period has expired.
- The right is lost if the seller delivers the goods to the buyer or a carrier without reserving a right of disposal.
2. Right of Stoppage in Transit (Section 50-52)
- If the buyer becomes insolvent after the seller has dispatched the goods but before the buyer takes delivery, the seller can stop the goods in transit.
- The seller must take action before the goods are delivered to the buyer.
- The right ends when the goods reach the buyer or their agent.
3. Right of Resale (Section 54)
- The unpaid seller can resell the goods under the following circumstances:
- If the goods are perishable.
- If the seller has given notice to the buyer of their intention to resell.
- If the right of lien or stoppage in transit has been exercised.
4. Right to Withhold Delivery
- If the contract states that delivery and payment are simultaneous, the seller can refuse to deliver the goods if the buyer does not pay.
5. Rights Against the Buyer:
- Suit for Price– If the buyer refuses to pay, the seller can sue for the contract price.
- Suit for Damages– If there is a breach of contract, the seller can claim damages.
- Suit for Interest & Compensation– In some cases, the seller may claim additional compensation for losses due to delayed payment.
The conclusion regarding an unpaid seller in commercial law is that they have specific rights and remedies to protect their interests when a buyer fails to pay for goods. Unpaid seller rights against buyer. You can check the some gndu questions on the website as gndupapers.com
Conclusion: An unpaid seller is legally protected and has multiple remedies available to recover payment or minimize losses. These rights ensure fair trade practices and financial security for sellers in commercial transactions. Unpaid seller rights against buyer.
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