Unit 4 Unpaid Seller

• Unpaid Seller


  A seller who has not received payment for goods sold
• The whole price has not been paid
• The right of action when payment has not been received
• Rights of an unpaid seller against goods

  • Property in goods
  • Lien
  • Stoppage in transit
  • Withholding delivery
  • Resale
• Rights of an unpaid seller against buyer

  • Suit for Price
  • Suit for Damages
  • Suit for Interest
• Seller's Lien

  Right to retain possession until payment
• Goods sold without stipulation as to credit are cash sales
• Goods sold on credit, but terms expired, allows the seller to retain possession
• Seller's lien is terminated when goods are delivered to carrier or bailee
• Stoppage in transit

  The right of stopping goods while they are in transit
• Right of stoppage in transit is exercised when the seller is unpaid, has parted with possession, goods are in transit, and buyer has become insolvent
• Goods are deemed to be in course of transit from the time they are with the carrier
• Transit comes to an end when the buyer obtains delivery or when the carrier acknowledges holding the goods
• Exceptions where unpaid seller's right of lien and stoppage in transit is defeated include when the seller has assented to the buyer's disposition of goods
• Right of re-sale exists where the goods are of a perishable nature and the seller gives notice to the buyer
• Breach of contract by seller occurs when they fail to deliver goods on time or deliver non-conforming goods
• Rights of buyer in case of breach of contract

  • Suit for Interest
  • Damages for non-acceptance
  • Suit for specific performance
  • Suit for breach of warranty
• Auction sale is made by inviting bids publicly
• The property is sold to the highest bidder in an auction sale
• Completion of the contract of sale occurs when the highest bid is accepted
• Reserved price may be set by the seller in an auction sale
• Pretended bidding is not allowed in auction sales