A who is the agent of a buyer, had obtained the goods from the Railway organization and loaded the goods on the truck. In the meantime, the railway organization received a notice from B, a seller, for stopping the goods in transit as the buyer had become insolvent. Referring to the provisions of the Sales of goods Act, 1930, decide whether the railway organization can stop the goods in transit as instructed by the seller?
Answers
Explanation:
The right of stoppage of goods in transit means the right of stopping the goods after the seller has parte with the goods. Thereafter the seller regains the possession of the goods.
This right can be exercised by an unpaid seller when he has lost his right of lien over the goods because the goods are delivered to a carrier for the purpose of taking the goods to the buyer. This right is available to the unpaid seller only when the buyer has become insolvent. The conditions necessary for exercising this right are:
The buyer has not paid the total price to the seller
The seller has delivered the goods to a carrier thereby losing his right of lienThe goods have not reached the buyer, they are in the course of transit (Section 50, 51 and In the given case A, who is an agent of the buyer, had obtained the goods from the railway authorities and loaded the goods on his truck. After this the railway authorities received a notice from the seller B to stop the goods the buyer had become insolvent.
According to the Sales of Goods Act, 1930, the railway authorities cannot stop the goods because the goods are not in transit. A who has loaded the goods on his truck is the agent of the buyer. That means railway authorities have given the possession of the goods to the buyer. The transit comes to an end when the buyer or his agent takes the possession of the goods.
The buyer has become insolvent