2. The right of stoppage in transit is an extension of the right of lien , discuss the statement . how will you exersice the right of stoppage is transit if you are an unpaid seller ?
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Explanation:
The right stoppage in transit is an extension of the right of lien, we will exercise the right of stoppage in transit if we are an unpaid seller by recording the transactions.
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According to the Sale of Goods Act, 1930 an unpaid seller has some rights over the goods and the purchaser.
- The right of stoppage is an extension of law of lien.
- Stopping in transit refers that, even in transit medium an unpaid seller can stop the commodities and thereby regain possession and hold them until the full price is earned.
- If the unpaid seller parts the possession of the goods and the buyer declares insolvency, the seller can demand the return of the commodities.
- The stoppage is affected as -
- When the seller has taken verified possession of commodities.
- A stoppage notice can be given by the seller when commodities are with other party.
- The carrier or bailee must re-deliver the commodities to the seller after receiving the notice, where the retailer pays the redelivery expenses.
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