Question

What are the seller’s remedies if the seller is unpaid and the buyer is insolvent? Please discuss, whether the seller has a right to stop the goods during the transit in accordance with SOGA (Sale of Goods Act 1979)

Please consider the conditions for the unpaid seller.

Answer 1

Rights of unpaid seller against goods:-

According to section 47 of the Sale of Goods Act 1979, an unpaid seller, who is in possession of the goods can maintain their possession until payment.

1. He can sell the goods without any condition for credit.

2. The goods are sold on credit.

3. The buyer becomes insolvent.

An unpaid seller as a seller that has not been paid the full price of the goods that have been sold. An unpaid seller of the goods, in which goods have passed to the buyer, exercise the following rights-

1. Right of lien on the goods for the price.

2. Right to stop the goods in transit.

3. Right to re-sell the goods.

SOGA (Sale of Goods Act 1979):- The Sale of Goods Act 1979 is a act of the Parliament of the United Kingdom which regulates English Contract Law in respect of goods that are sold and purchased.

Remedies:-

1. To terminate contract.

2. Action for the prices of goods.

3. Damages for non acceptance.

4. Rights of unpaid seller.

a) Lien s41.

b) Stoppage s44.

c) Resale s48.