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? A seller of goods is deemed to be an unpaid seller
when:-
• The whole of the price has not been paid or
tendered;
• A bill of exchange or other negotiable instrument
has been received as a conditional payment, and
the condition on which it was received has not
been fulfilled by reason of the dishonour of the
instrument or otherwise.
Page 3


? A seller of goods is deemed to be an unpaid seller
when:-
• The whole of the price has not been paid or
tendered;
• A bill of exchange or other negotiable instrument
has been received as a conditional payment, and
the condition on which it was received has not
been fulfilled by reason of the dishonour of the
instrument or otherwise.
? The term "seller" includes any person who is in the 
position of a seller, as, for instance, an agent of the seller 
to whom the bill of lading has been endorsed, or a 
consignor or agent who has himself paid, or is directly 
responsible for, the price.
? The seller shall be called an unpaid seller even when only 
a small portion of the price remains to be unpaid.
? It is for the non payment of the price and not for other 
expenses that a seller is termed as an unpaid seller.
? Where the full price has been tendered by the buyer and 
the seller refused to accept it, the seller cannot be called 
as unpaid seller.
Page 4


? A seller of goods is deemed to be an unpaid seller
when:-
• The whole of the price has not been paid or
tendered;
• A bill of exchange or other negotiable instrument
has been received as a conditional payment, and
the condition on which it was received has not
been fulfilled by reason of the dishonour of the
instrument or otherwise.
? The term "seller" includes any person who is in the 
position of a seller, as, for instance, an agent of the seller 
to whom the bill of lading has been endorsed, or a 
consignor or agent who has himself paid, or is directly 
responsible for, the price.
? The seller shall be called an unpaid seller even when only 
a small portion of the price remains to be unpaid.
? It is for the non payment of the price and not for other 
expenses that a seller is termed as an unpaid seller.
? Where the full price has been tendered by the buyer and 
the seller refused to accept it, the seller cannot be called 
as unpaid seller.
? Where the goods have been sold on credit, 
the seller cannot be called as an unpaid seller. 
Unless :
? If during the credit period seller becomes 
insolvent, or
? On the expiry of the credit period, if the price 
remains unpaid, then, only the seller will 
become an unpaid seller.
Page 5


? A seller of goods is deemed to be an unpaid seller
when:-
• The whole of the price has not been paid or
tendered;
• A bill of exchange or other negotiable instrument
has been received as a conditional payment, and
the condition on which it was received has not
been fulfilled by reason of the dishonour of the
instrument or otherwise.
? The term "seller" includes any person who is in the 
position of a seller, as, for instance, an agent of the seller 
to whom the bill of lading has been endorsed, or a 
consignor or agent who has himself paid, or is directly 
responsible for, the price.
? The seller shall be called an unpaid seller even when only 
a small portion of the price remains to be unpaid.
? It is for the non payment of the price and not for other 
expenses that a seller is termed as an unpaid seller.
? Where the full price has been tendered by the buyer and 
the seller refused to accept it, the seller cannot be called 
as unpaid seller.
? Where the goods have been sold on credit, 
the seller cannot be called as an unpaid seller. 
Unless :
? If during the credit period seller becomes 
insolvent, or
? On the expiry of the credit period, if the price 
remains unpaid, then, only the seller will 
become an unpaid seller.
1) Right against goods:
Where the property in the goods has passed
? Lien on goods
? A right of stoppage-in-transit
? A right of Re-sale
Where the property in the goods has not passed
? Withholding delivery
? Stoppage in transit
2) Right against the buyer:
? Suit for price
? Suit for damages
? Repudiation o contract
? Suit for interest
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33 videos|59 docs|18 tests

FAQs on PPT - Rights of an Unpaid Seller - Business Law - B Com

1. What are the rights of an unpaid seller?
Ans. The rights of an unpaid seller include the right to retain possession of goods, the right to stop the goods in transit, the right to resell the goods, the right to sue for the price, and the right to sue for damages.
2. When can an unpaid seller retain possession of the goods?
Ans. An unpaid seller can retain possession of the goods until payment is made by the buyer. This right allows the seller to protect their interest in the goods and prevent the buyer from taking possession without fulfilling their payment obligations.
3. What is the right to stop goods in transit?
Ans. The right to stop goods in transit allows an unpaid seller to reclaim the goods if they have been sold on credit and the buyer becomes insolvent. The seller can stop the transportation of the goods and regain possession until payment is made.
4. How does the right to resell the goods work for an unpaid seller?
Ans. The right to resell the goods allows an unpaid seller to sell the goods to another buyer if the original buyer fails to make payment. This right enables the seller to mitigate their losses by finding an alternative buyer for the goods.
5. Can an unpaid seller sue for damages?
Ans. Yes, an unpaid seller can sue for damages if the buyer fails to make payment. The seller can claim compensation for any loss suffered as a result of the buyer's non-payment, including additional costs incurred or loss of profit.
33 videos|59 docs|18 tests
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