UNPAID SELLER
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The document discusses the rights of an unpaid seller under business law. It defines an unpaid seller as one who has not received full payment for goods sold. An unpaid seller has rights against the goods as well as against the buyer. Against the goods, the unpaid seller has rights of lien, stoppage in transit, and resale if ownership transferred, or the right to withhold delivery if it did not. Against the buyer, the unpaid seller can sue for the price, damages for non-acceptance, interest, or damages for repudiation of the contract before the due date.
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UNPAID SELLER
- 1. 1 BUSINESS LAW - UNPAID SELLER Prepared by, Dr.Sangeetha R Assistant Professor Hindusthan College of Arts and Science, Coimbatore
- 2. 2 UNPAID SELLER : RIGHTS OF AN UNPAID SELLER
- 4. 4 UNPAID SELLER : RIGHTS OF AN UNPAID SELLER Definition: The term ‘unpaid seller’ may be defined as the seller to whom the full price of the goods sold has not been paid. The legal definition of ‘unpaid seller’ is given in Section 45 of the Sale of Goods Act, as under: “The seller of the goods is deemed to be an unpaid seller within the meaning of this Act: (a) When the whole of the price has not been paid or tendered; (b) When a bill of exchange or other negotiable instrument has been received as conditional payment and the condition on which it was received has not been fulfilled by reason of the dishonor of the instrument or otherwise.”
- 5. 5 RIGHTS OF AN UNPAID SELLER
- 6. 6 RIGHTS OF AN UNPAID SELLER (A)Rights against the Goods: Unpaid seller’s rights against the goods may be discussed under the following two heads, namely: 1. Where the ownership of the goods has transferred to the buyer: [ Sec 46(1)] In this case, the unpaid seller has the following rights: (a)Right of lien. (b)Right of stoppage of goods in transit. (c) Right of resale.
- 7. 7 RIGHTS OF AN UNPAID SELLER
- 8. 8 RIGHT OF LEIN [ SEC 47, 48 & 49]
- 9. 9 RIGHT OF STOPPAGE IN TRANSIT [ SEC 50, 51 & 52]
- 10. 10 RIGHT OF RE-SALE[ SEC 54]
- 11. 11 RIGHTS OF AN UNPAID SELLER contd…. 2. Where the ownership of the goods has not transferred to the buyer: [ Sec 46(2)] In this case, the unpaid seller has the right of withholding the delivery of goods sold. (B) Rights against the Buyer: Unpaid sellerhas the following rights against the buyer: (a) Suit for price. (b) Suit for damages for non-acceptance (c) Suit for interest. (d) Suit for repudiation of contract before due date.
- 12. 12 (a) Suit for Price (Sec. 55) Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may sue him for the price of the goods. (b) Damages for non-acceptance (Sec. 56) Where the buyer wrongfully neglects or refuses to pay for the goods, the seller may sue him for damages for non-acceptance. (c) Suit for Interest The seller can recover interest on price from the date on which the payment became due, if there is a special agreement to that effect.
- 13. 13 (d) Repudiation of contract before due date (Sec.60) Where the buyer in a contract of sale repudiates the contract before the date of delivery, the seller may either treat the contract as subsisting and wait till the date of delivery, or he may treat the contract as rescinded and sue for damages for the breach.