Q. Who is an ‘unpaid seller’ what are his rights against the goods? Explain under what circumstances such rights can be exercised by him. (2000)
Q. Write an un-paid seller’s right of stoppage of goods in transit. Indicate the circumstances which determine the duration of transit and how stoppage in transit is effected. (2002)
Definition of unpaid seller:
According to Sec 45, the seller of goods is deemed to be an unpaid seller.
(i) When the whole of the price has not paid or tendered.
(ii) When a bill of exchange or other negotiable instrument has been received as a condition payment, and the condition on which it has been received remains unfulfilled by reason of dishonor of the instrument or other wise.
Features of unpaid seller:
Following are the features of unpaid seller.
(i) He must sells the goods on cash basis and must be unpaid.
(ii) He must be unpaid either wholly or partly.
(iii) If the price is paid through a bill of exchange or other negotiable instruments, the same must be dishonoured.
(iv) He must not refuse to accept the payment when tendered.
(i) Rights of unpaid seller against goods.
(ii) Rights of unpaid seller against the buyer.
(I) Right of un paid seller against the goods:
Against the goods the unpaid seller has the following. Rights.
Lien is the right to retain possession and refuse to deliver them to the buyer until the price due in respect of them is paid to the buyer.
Circumstances when right can be exercised:
Following are the circumstances when right of lien can be exercised.
(i) Where the goods have been sold without any stipulation.
(ii) Where the goods have been sold on credit, but the term of the credit has expired.
(iii) Where the buyer becomes insolvent, even though the period of credit may not have yet expired.
Unpaid seller has right to stope the goods in transit.
Conditions:
Following are the conditions
(i) The seller must be unpaid.
(ii) Goods must be in transit.
(iii) Property has passed to the buyer.
(iv) Buyer is insolvent.
Modes of stoppage:
Following are the modes of stoppage:
(i) By taking possession of the goods.
(ii) By giving notice of his claim to the carried or other bailee in whose possession the goods are
(c) Right of resale:
Unpaid seller can resale the goods:
Conditions:
(a) Goods should be of perishable nature.
(b) Right of resale should be expressed in contract.
(c) Buyer has not paid.
(d) Buyer has received the notice from seller.
(II) Rights of unpaid seller against buyer:
He has right against buyer and have following remedies.
(i) Suit for price:
Where property has passed to the buyer, and the buyer wrongfully refuses or neglect to pay for the goods, the seller may sue him for the price of the goods.
(ii) Suit for repudiation:
If buyer repudiates the contract before the date of the delivery the seller may treat the contract as subsisting and wait till the date of delivery or may tread the contract as rescinded and sue for damages for breach.
(iii) Suit for damages for non-acceptance:
If buyer refused to accept and pay for the goods the seller has right to sue for damages for non-acceptance.
(iv) Suit for interest and special damages:
Unpaid seller can recover the interest on the unpaid price. He can also sue for special damages.
To conclusion it can be said that, unpaid seller under sale of goods. Act is a person who has not been paid. He has rights the goods sold and against the buyer. He can exercise right of stoppage of goods in transit under some circumstances.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------same topic repeated-----------------------------------------------------
Q. Write an un-paid seller’s right of stoppage of goods in transit. Indicate the circumstances which determine the duration of transit and how stoppage in transit is effected. (2002)
Introduction:
Unpaid seller means a person who has sold the good for a price but price has not been paid to him unpaid seller has rights against the goods and buyer.
Unpaid seller means a person who has sold the good for a price but price has not been paid to him unpaid seller has rights against the goods and buyer.
Definition of unpaid seller:
According to Sec 45, the seller of goods is deemed to be an unpaid seller.
(i) When the whole of the price has not paid or tendered.
(ii) When a bill of exchange or other negotiable instrument has been received as a condition payment, and the condition on which it has been received remains unfulfilled by reason of dishonor of the instrument or other wise.
Features of unpaid seller:
Following are the features of unpaid seller.
(i) He must sells the goods on cash basis and must be unpaid.
(ii) He must be unpaid either wholly or partly.
(iii) If the price is paid through a bill of exchange or other negotiable instruments, the same must be dishonoured.
(iv) He must not refuse to accept the payment when tendered.
Rights of unpaid seller:
(i) Rights of unpaid seller against goods.
(ii) Rights of unpaid seller against the buyer.
(I) Right of un paid seller against the goods:
Against the goods the unpaid seller has the following. Rights.
(a) Right of lien:
Lien is the right to retain possession and refuse to deliver them to the buyer until the price due in respect of them is paid to the buyer.
Circumstances when right can be exercised:
Following are the circumstances when right of lien can be exercised.
(i) Where the goods have been sold without any stipulation.
(ii) Where the goods have been sold on credit, but the term of the credit has expired.
(iii) Where the buyer becomes insolvent, even though the period of credit may not have yet expired.
Termination of right of lien:
Under the following circumstances unpaid seller loses his right of lien.
(i) When he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal of goods.
(ii) When the possession of goods is obtained lawfully by the buyer or his agent.
(iii) When the seller waives his right of lien on goods.
(iv) When buyer further sells the goods.
(i) When he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal of goods.
(ii) When the possession of goods is obtained lawfully by the buyer or his agent.
(iii) When the seller waives his right of lien on goods.
(iv) When buyer further sells the goods.
(b) Right of stoppage of goods in transit:
Unpaid seller has right to stope the goods in transit.
Conditions:
Following are the conditions
(i) The seller must be unpaid.
(ii) Goods must be in transit.
(iii) Property has passed to the buyer.
(iv) Buyer is insolvent.
Modes of stoppage:
Following are the modes of stoppage:
(i) By taking possession of the goods.
(ii) By giving notice of his claim to the carried or other bailee in whose possession the goods are
(c) Right of resale:
Unpaid seller can resale the goods:
Conditions:
(a) Goods should be of perishable nature.
(b) Right of resale should be expressed in contract.
(c) Buyer has not paid.
(d) Buyer has received the notice from seller.
(II) Rights of unpaid seller against buyer:
He has right against buyer and have following remedies.
(i) Suit for price:
Where property has passed to the buyer, and the buyer wrongfully refuses or neglect to pay for the goods, the seller may sue him for the price of the goods.
(ii) Suit for repudiation:
If buyer repudiates the contract before the date of the delivery the seller may treat the contract as subsisting and wait till the date of delivery or may tread the contract as rescinded and sue for damages for breach.
(iii) Suit for damages for non-acceptance:
If buyer refused to accept and pay for the goods the seller has right to sue for damages for non-acceptance.
(iv) Suit for interest and special damages:
Unpaid seller can recover the interest on the unpaid price. He can also sue for special damages.
5. Conclusion:
To conclusion it can be said that, unpaid seller under sale of goods. Act is a person who has not been paid. He has rights the goods sold and against the buyer. He can exercise right of stoppage of goods in transit under some circumstances.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------same topic repeated-----------------------------------------------------
2I.
Where the goods have been sold on the cash basis.II.
Where the goods have been sold on credit basis and the term of credit has expired.III.
Where the buyer has become insolvent even if the period of credit has not been expired.Other rules to satisfy the conditions for this right areI.
The unpaid seller must be in actual possession of the goods sold.II.
It can be exercised even If the documents of title have been delivered to the buyer.III.
It can be exercised for the price and not for other expensesIV.
If the seller delivers some goods, it can be exercised on the remaining.
Termination of right of lien
Seller’s right of lien is terminated in following cases.I.
When he delivers the goods to the carrier or other bailey for transmission to the buyerII.
When the buyer or his agent lawfully obtains the possession of the goodsIII.
When seller waives his right of lien on the goodsIV.
The right of lien once lost will not be restoredV.
When the buyer further sells the goods and the seller agreesExample:A seller “S” sells a TV set to “B” and delivers it to “B” and since the TV set was not functioning properly,“B” delivered it back to “S” for the repairs. It was held that “S” can not exercise his right of lien over TVset.
Right of stoppage of goods in transit
It means stoppage of goods while they are in transit to take possession until the price is paid (sec. 50-52)Unpaid seller can stop the goods in transit in the following cases.I.
While the buyer becomes insolventII.
While the goods are out of actual possession of seller, but have not reached buyer’s possessioni.e. goods are in transit with career.III.
The unpaid seller can stop the goods in transit only for payment of the price of the goods andnot for any other charges.
The unpaid seller can not stop goods in transit in following cases.
I.
When the goods reaches the destination.II.
While the buyer or his agent takes possession of delivery even if it is not reached destination.III.
In case the carrier is agent of the buyer, the transit comes to an end the instance carrier receivesthe goods and seller can not stop the transitionIV.
Carrier’s wrongful refusal to deliver goods to the buyer.Example:
3“A” sells TV set to “B”. “A” delivers the TV to the carrier to carry it to “B”. Later on gets news that “B”has become insolvent; “A” can stop delivery.
Right of resale
If a buyer fails to pay or offer the price within a reasonable time, the unpaid seller has the right to resellthe goods in the following circumstances.a)
Where the goods are of perishable nature.b)
Where the unpaid seller has exercised his right of lien or stoppage in transit and gives a noticeto buyer of his intension of resell the goods.c)
Where the unpaid seller has expressly reserved his right of resale.d)
Where seller gives notice to the buyer of his intension to resell and the buyer does not paywithin a reasonable time, he cana.
Recover loss on resale of the goods, if anyb.
Retain any surplus on resale of goods, if anyHowever if the seller sells with out the notice to the buyer, he can nota.
Recover any loss of the goods, if anyb.
Retain any surplus on the resale of the goods, if anyExample:a)
“X” sells vegetable to “Y” on credit, “Y” does not pay, “X” can resell to any other person.b)
“M” sells 100 blankets to “N” and gives him one week for payment. “N” does not pay. “M” canresell those to any other person.
Rights against the buyer personally
The unpaid seller has following rights against the buyer
Suit for price
Where ownership of the goods has passed to the buyer and the buyer refuses to pay the price accordingto the terms of the contract, the seller can sue the buyer for price, irrespective of delivery of the goods.(Sec. 55)Example:
Suit for damages for non-delivery
Where the buyer refuses to accept and pay for the goods, the seller may sue him for damages for non-acceptance. The seller can recover damages only and not the full price (Sec. 56)Example:
No comments:
Post a Comment