The unpaid seller has delivered the goods to the carrier for transmission to the buyer, and in the meantime the buyer becomes insolvent, the seller then has the right to stop and keep the goods in transit. Thus, the unpaid seller repossesses the goods while they are in transit. The unpaid seller can only exercise the right to stop the transit if he meets the following conditions: if the goods have a finished market, the seller must resell the disputed goods, in this situation the buyer must pay the losses when they occurred. If the goods are not resold by the seller, the difference between the contract price and the market price of the goods will be taken into account when calculating the damage. If the difference remains minimal, the seller may be deprived of the amount of the damage. As stated in section 45 of the Sale of Goods Act 1930, the seller is considered to be an unpaid seller if the full amount has still not been recovered and he has an urgent right to bring an action for payment. • M.P.V. Sundararama Iyer and . vs V.V.C.R. Murugesa Mudaliar on April 11, 1956Since the seller has the right to deliver at any time during the month of delivery, he must inform the buyer when he is ready for delivery, and if he does not comply with this notice, he has the right to resell and therefore treats the contract as terminated.
This condition states that the seller informs the buyer when he asks him to accept, and the buyer must accept the delivery at any time during the month. Since the buyer must accept the delivery according to the seller`s requirements, a delivery request from him is not foreseen. Elsewhere, the contract provides that the buyer must pay for the goods against delivery and, therefore, upon receipt of the seller`s notice, must be willing to pay the price and accept delivery in accordance with the requirements of the notice. Since these things must be notified by the seller, a request for delivery is unnecessary and is not provided for in the contract. This simplicity belies some important caveats. Many financial and legal experts have spent a lot of time, energy, and space on the subject of unpaid seller privileges. It is important that those who regularly deal with business-to-business transactions, as well as large consumer transactions, understand the intricacies of this area of law. For example, a representative of the seller to whom the bill of lading was issued or who paid the price of the goods or who is directly liable to the seller for the price of the goods is also considered an unpaid seller.2 • Suchetan Exports P.Ltd v.
Gupta Coal India Limited & Ors on 2 August 2011Unpaid Seller” within the meaning of Section 45(1)(a) of the aforementioned Act and would only be entitled to reimbursement of the cost of the goods delivered. It was also stipulated that the seller then transferred the rights in the goods to the buyer by approving a number of negotiable documents for the benefit of the buyer and handing them over to the buyer. The unpaid seller of the goods loses his lien in the following cases: However, if the parties enter into a contractual agreement to retain the lien and transfer of ownership after payment, then the unpaid seller would have the right to exercise the lien on the goods, regardless of whether possession of the goods may have been transferred to the buyer. Lien and termination do not extinguish the right of resale. But if the goods are resold by the seller, all the above rights lose their effect, because the privilege and cessation can only be exercised over the goods. According to Article 60 of the Law on the Sale of Goods, if the buyer withdraws or is terminated before the conclusion of the contract, the seller may consider the contract terminated and is entitled to receive premature damage from the buyer. In addition, section 48 of the Sale of Goods Act provides that, notwithstanding partial delivery of the goods by the unpaid seller, section 48 authorizes the seller to pledge the remainder. In accordance with section 46 (2) of the Sales Act, the unpaid seller has the right, among other remedies, to suspend delivery if ownership of the goods has not passed to the buyer.
In Grice vs. Richardson (1877), the sellers had supplied part of the three tea bags under a contract of sale, but had not been paid for the rest. Therefore, they could keep them until the buyer pays the price. As the buyer`s agent. In this case, the seller cannot exercise his right to stop transport because the buyer has acquired possession of it in accordance with § 61. The unpaid seller has the right to pay interest from the buyer for any late payment. Such interest shall take effect from the date on which the price is due. If the buyer refuses the goods and the seller refuses to take them back, this is not considered the end of transport.
In the case of Rosewear China Clay Co Ltd, the contract was for the sale of porcelain clay. The buyer took a ship and ordered the seller to load the goods to Fowey. The destination was unknown to the seller. Thus, the court favoured the seller. Answer: Lawsuit for price: This is the primary remedy for a seller who has not been compensated for a purchase. If the Seller satisfies all of the Buyer`s claims, but the Buyer refuses to pay the agreed amount, the Seller may exercise its legal options and take legal action against the Buyer. The privilege of an unpaid seller expires under the following condition. It is important to note that if the buyer receives possession of the goods from the seller, all rights of the unpaid seller with respect to the goods are waived, although the price is still due.
Acceptance of possession confers on the buyer unlimited and absolute rights to the goods. Although the seller may recover the amount as a normal debt, the lien cannot be exercised even if the goods are handed over to the seller for repair. If an unpaid seller has delivered part of the goods, he may exercise his lien on the remaining goods. The rights of the unpaid seller against the buyer exist only if there is no other agreement on the waiver of the seller`s privilege in case of partial delivery of the goods. According to section 56 of the Sales Act, if the buyer unfairly neglects the goods or refuses to accept and pay for the goods, the seller may sue the buyer for damages for non-acceptance of the goods. Section 73 of the Indian Contracts Act, 1872 applies to the amount of damages. The Sale of Goods Act 1930 also deals with the rights and obligations of the unpaid seller, as well as the rights and obligations of the seller and the buyer.