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Rights of an Unpaid Seller When Goods Are in Buyer's Possession

Rights of an Unpaid Seller When Goods Are in Buyer's Possession

1. Right to Sue for the Price (Section 55):

  • The seller can sue the buyer for the price of the goods, even if the property in the goods has not passed to the buyer.

2. Right to Sue for Damages (Section 56):

  • If the buyer wrongfully neglects or refuses to pay for the goods, the seller has the right to sue for damages for non-acceptance.

3. Right to Sue for Interest (Section 61):

  • If there is a stipulation for payment of interest in the contract, or if the contract is silent, the seller may sue for interest on the price.

4. Right to Recover Goods (Section 58):

  • If the seller has reserved the right of disposal and the buyer defaults on payment, the seller has the right to recover possession of the goods.

5. Right of Stoppage in Transit (Section 50):

  • If the seller becomes aware that the buyer is insolvent and the goods are still in transit, the seller has the right to stop the goods and resume possession until payment is received.

6. Right of Re-Sale (Section 54):

  • If the seller has not reserved the right of disposal and the buyer defaults on payment, the seller may re-sell the goods and claim damages from the buyer.

These rights are subject to the terms of the contract and the applicable provisions of the Sale of Goods Act or similar legislation. It's important for sellers to understand their rights in case of non-payment and to follow legal procedures to enforce those rights.

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