Unpaid Seller's Rights 💸

Who is an Unpaid Seller? (Section 45) A seller who:

1. Has NOT received the whole price, OR
2. Received a cheque which was dishonoured.

Situation: You sold goods. Buyer took goods. Didn't pay (or paid with a bounced cheque). Question: What can you do?

Rights Against the GOODS 📦

1. Right of Lien (Section 47) 🔒

Meaning: Right to retain possession of goods until full payment. When can you use it?

• Goods sold without credit period.
• Credit period expired.
• Buyer becomes insolvent.

Limitation: You can only HOLD the goods. You cannot USE or SELL them.

2. Right of Stoppage in Transit (Section 50) 🚛

When: Buyer becomes insolvent + Goods are in transit (on the way to buyer). Action: You can stop the carrier (truck driver) and reclaim goods.

"In Transit" means: Goods left your warehouse but not yet reached buyer.

3. Right of Resale (Section 54) ♻️

When can you resell the goods?

• Perishable goods (Vegetables, Milk).
• Seller gave notice to buyer and buyer didn't pay.
• Seller reserved the right to resell (in contract).

Effect: Buyer loses all rights. You can keep the profit or claim loss.

Rights Against the BUYER 👤

1. Suit for Price (Section 55):

   • If property passed to buyer, you can sue for the price (not damages).

2. Suit for Damages (Section 56):

   • If buyer refuses to accept/pay, sue for loss suffered.

3. Suit for Interest:

   • If agreed in contract or as per mercantile usage.

Quiz Time! 🎯

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💡 Final Wisdom: "The law gives the seller weapons to fight non-payment. But use them wisely and quickly, or you lose them!" ⚔️

Next up: Consumer Protection Act - Protecting the Buyer! 🛡️