lecture-19 - THE SALE OF GOODS BUYER REMEDIES IN CASE OF...

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Learning Outcomes After reading the lesson, you should be able to know: · The rights of an unpaid seller · The rights of an unpaid seller against the goods · The rights of an unpaid seller against the buyer personally · The rights of buyer Introduction Today will be discussing about the remedies in case of breach by seller and buyer. Let us first start with the study of rights of an unpaid seller. Rights of an Unpaid Seller According to (section 45) the term seller includes ‘any person who is in the position of a seller, as, for instance, an agent of the seller to whom the bill of lading had been endorsed, or a consignor or agent who has himself paid, or is directly responsible for, the price. The seller of goods is deemed to be an ‘unpaid seller’ (a) when the whole of the price has not been paid or tendered; or (b) where a bill of exchange or other negotiable instrument has been received as a conditional payment, i.e., subject to the realization thereof, and the same has been dishonoured. According to above the following are the characteristics of and ‘unpaid seller’. 1.He must sell goods on cash terms and not on credit, and he must be unpaid. 2.He must be unpaid either wholly or partly. Even if only a portion of the price, however small, remains unpaid, he is deemed to be an unpaid seller. Where the price is paid through a bill of exchange or other negotiable instrument, the same must be dishonoured. 3.He must not refuse to accept payment when tendered. If the buyer has tendered the price but the seller wrongfully refuses to take the same, he ceases to be an unpaid seller. Against the buyer personally Where the property in the goods has not passed (Sec. 46(2) Re-sale Withholding Stoppage in (Sec. 54) delivery Transit Suit for Suit for Repudiation Suit for Price damages of contract interest (Sec.55) (Sec. 56) (Sec. 60) (Sec.61) Rights of an Unpaid Seller An unpaid seller has two-fold rights, viz.,; I.Rights of unpaid seller against the goods, and II.Rights of unpaid seller against the buyer personally. We shall now examine these rights in detail. 1. Rights of Unpaid Seller against the Goods. An unpaid seller has the following rights against the goods notwithstanding the fact that the property in the goods has passed to the buyer: 1.Right of lien; 2.Right of stoppage of goods in transit; 3.Right of resale [Sec. 46 (1)]. 1. Right of lien (Sec. 47) ‘Lien’ is the right to retain possession of goods and refuse to deliver them to the buyer until the price due in respect of them is paid or tendered. An unpaid seller in possession of goods sold is entitled to exercise his lien on the goods in the following cases: a)Where the goods have been sold without any stipulation as to credit; b)Where the goods have been sold on credit, but the term of credit has expired: c)Where the buyer becomes insolvent, even though the period of credit may not have yet expired.
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lecture-19 - THE SALE OF GOODS BUYER REMEDIES IN CASE OF...

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