1. The Unpaid Seller
1

2. Who is an Unpaid Seller?
S.38(1) defines an unpaid
seller…
'The seller of goods is an
unpaid seller within the
meaning of this Act…
2

3. Unpaid seller's rights
S.39(1) provides the unpaid seller of goods
with 3 rights:
A. A right of lien.
B. A right of stoppage.
C. A right of resale of the goods.
3

4. Unpaid seller's lien (S.41-43)
The seller's lien is a right to retain the
goods until the whole of the price has been
paid or tendered.
4

5. • Unpaid
• No Credit Sale
• Possession
5

6. Termination of Lien(Sec. 49)
Delivery to a carrier.
Possession by the buyer.
Seller waives his right of lien.
6

7. Case on Right of Lien
A Case in which X sells his car in an auction to Y
who is the highest bidder. Y pays by cheque and is
allowed to do so provided he signs a document
stating that the property in the car would not pass
to him until the amount is credited to X’s a/c.
7

8. The property in the car had passed on the
fall of the Hammer!!!
8

9. Unpaid seller's right of stoppage of goods in transit
S.44 states, 'when the
buyer of goods
becomes insolvent the
unpaid seller who has
parted with the
possession of the goods
has the right of stopping
them in transit, that is to
say, he may resume
possession of the goods
as long as they are in
course of transit, and 9

10. • When the buyer becomes insolvent.
• When the goods are in transit(Sec. 50)
10

11. Duration
Goods are in transit when they have passed out of
the possession of the seller into the possession of
a carrier, but have not yet reached the possession
of the buyer.
11

12. Transit Comes to an end when…
• The buyer/agent
obtains delivery before
the appointed
destination.
• When the carrier
acknowledges after the
arrival at the appointed
destination.
• Carrier wrongfully
refuses delivery.
12

13. Unpaid seller's right of resale
The unpaid seller can resell the goods
when…
13

14. On a re-sale…
I(On notice)
If there is a loss.
If there is a
surplus.
II(Without notice)
On loss.
On Surplus.
14

15. Right of with-holding Delivery
Where the property in
goods has not passed to the
buyer, an unpaid seller has, in
addition to his other remedies. A
right of with-holding delivery
similar to and in co-existence
with his rights of lien and
stoppage in transit where the
property has passed to the15

16. 16