Right of lien or retention of goods:
This is the right of unpaid seller in possession of the buyers goods to retain them as security for the price. This lien is possessory in character. It is exercisable the unpaid seller over any goods in his possession. It is exercisable even where the seller holds the goods as the buyers agent. Under section 4 (1) of the Sale of Goods Act, the lien is exercisable in the following circumstances.
If the buyer becomes insolvent
If the goods have not been sold on credit
If the goods have been sold on credit but the term of credit has expired.
Right of stoppage in transitee
This is the right of unpaid seller who has already parted with possession of the goods to resume such possession as long as the goods are in the course of transit. Under section 44 of the Act, the right of stoppage in transitu is only exercisable if the buyer becomes insolvent.
Under section 46 (1), the right of stoppage is exercible either by:
Taking possession of the goods
Giving notice of the seller claim to the carrier or his principal
Once notice is given, the carrier must redeliver the goods in accordance with the seller’s directions but at the sellers expense.
The unpaid seller right of stoppage in transitu is defeated in the following circumstances:-
- If the buyer or his agent intercepts the goods before their arrival at the appointed destination.
- If after arrival the carrier notifies the buyer or his agents that his is holding the goods on his behalf.
- If after the carrier wrongfully neglects or refuses to deliver the goods to the buyer or his agent.
Right of resale
Under section 47 and 48 of the Sale of Goods Act, the unpaid seller has the right to resell the goods in his possession to recover the amount payable. He passes a good title to the buyer in the following circumstances.
Where the right to resell is expressly reserved in the event of the buyers default.
If the goods are of a perishable nature
If the seller notifies the buyer his intention to resell the goods but the buyer does not pay or tender the price within a reasonable time.
Right to withhold delivery
Under sect 49(2) where property in the goods has not passed to the buyer, the seller is entitled to
withhold their delivery.
Remedies against the buyer
Action for price
Under section 49 of the Act, an unpaid seller has the right to maintain an action against the buyer for the price of the goods in the following circumstances.
Where the property in the goods has passed to the buyer who wrongfully neglects or refuses to pay the price.
Where the price is payable on a specified day but the buyer neglects or refuses to do so. An action for price is a suit for a liquidated sum of money due to the seller in respect of the goods.
Damages for non-acceptance
Under section 50 (1) of the Act, if the buyer wrongfully neglects or refuses to accept or pay for the goods, the seller may maintain an action against him in damages for non-acceptance. The amount recoverable is the estimated loss directly and naturally resulting from the buyer breach of contract.