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define an unpaid seller. Explain his rights under contract of sale


priya verma 27th Feb, 2020
Answer (1)
Charvi Nayyar 29th Feb, 2020

hello aspirant

The seller becomes an unpaid seller when either he had not been paid in full or the buyer has failed to meet the maturity of bills of exchange or any other negotiable instrument accepted by seller as a condition precedent. Under this situation, the seller can resell the goods if he had exercised the right of lien or stoppage in transit, after giving notice to the buyer and the new buyer will have good title over the goods. In this case, the seller has the right to sue the buyer for failure to pay the required amount as well as a lien. On the contrary, if the seller fails to deliver goods to the buyer, he may sue the seller for non-performance and can claim damages or specific performance. Rights of an unpaid seller against the goods are as follows::-

  • Right of Lien
  • Right of stoppage in transit
  • Right of Re-Sale

hope this helps

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