RIGHT OF UNPAID SELLER

UNPAID SELLER MEANING OF UNPAID SELLERThe seller of goods is said to be unpaid seller: 1)when whole price has not been paid. 2)when bill of exchange or other negotiable instrument has been received as conditional payment and the condition has not been fulfilled by any reason of dishonor of instrument.EX. A sell goods to B on credit of three months .After 3 months B didnt pay the price .Here A will be regarded as an unpaid seller. In the above example if A accepts a bill of exchange and it is dishonored by bank on due date , A will be considered as unpaid seller.Right of unpaid sellerAgainst the goods

Where the property in the goods has passedLienStoppage in transitRe-saleWhere the property in the goods has not passedWithholding deliveryStoppage in transitAgainst the buyer personallySuit for priceSuit for damagesRepudiation of contract Suit for interest

MEANING OF RIGHT OF LIEN:-Lien means retain the possession of goods ,not the ownership .Here a seller can take back the possession of goods from the buyer if he doesnt pay the money on the due date(if buyer also become insolvent). 5EX. A is a seller who sell goods to the buyer B for Rs. 1000 but b says to make payment after 30 days but later on seller finds that buyer b is not able to make payment due to insolvency, so he can take the goods back from the buyer. RIGHT OF STOPPAGE IN TRANSITWhen the buyer of goods become insolvent ,the unpaid seller who has parted the possession of goods has right of stopping them in transit until the payment is made. here ownership is with buyer but the goods are in possession of seller or his agent.EX. X sold goods to Y for RS.200000 .Y said that he will make payment at the time of delivery ,then X sends the goods through truck , but on the way seller receives a call from buyer where he get to know that Y is not able to make payment. X retains the possession of the goods by stopping the goods in transit. Here ownership is changed but the possession of goods is with seller until buyer makes the payment RIGHT OF RE-SALE:-If a buyer is not able to pay the money then seller can sell the goods to other person without asking buyer(if goods are perishable , and if non-perishable only by giving prior notice) .If seller makes profit by reselling them , then he is not liable to pay surplus if any to the buyer If occurring loss then seller must claim first by giving prior notice to buyer for the loss occurred. Ex. A seller sell bike to y .Y says he will make payment after 30 days but y is unable to make payment on due date. Here seller can re-sell bike to another person by giving him prior notice.RIGHT OF WITHHOLDING DELIVERYWhen the property in goods has not passed to buyer ,the seller has a right to withhold the delivery of goodsEx. K sold goods to m for Rs 50000 for which he receives cheque and paid it into bank .But during delivery period he finds that cheque is bounced from bank so the seller k withhold the delivery of goods until the payment is made. SUIT FOR PRICEIn this if goods are at the point of delivery but buyer said that he is not able to pay full money at a time so at this moment in case of perishable goods seller will say keep goods with you and with non perishable goods seller can retain the goodsThe seller can sue for the price if buyer is not giving the money for perishable goodsEX. A sell tomatoes of 500 kg to b. B says he will make half payment and balance after 20 days here seller can give goods to buyer as there is perishable goodsEx. A sell car to b for Rs. 1.5 lakhs to b ,but B says he will make payment in after 30 days here seller can deny for sale of the car SUIT FOR DAMAGES:-In this if the buyer has purchase some goods but full payment has not been made .If the seller is retaining the goods and the goods have some damages ,then seller can sue for damages made to goods not for the whole price.Ex.A sell television to B for Rs. 15000. B makes half payment and for balance he said he will pay after 45 days .But on due date he is not able to pay the same and seller while reposseing the television finds that sound is not clear of television so, here seller can sue for the damages SUIT FOR INTEREST:-In this if seller sell goods to buyer but buyer is not able to pay the sum before the due date so seller can sue the buyer to make payment of interest for the period beyond the due date.