Question

Define unpaid seller what are the rights of unpaid seller

Answer 1

Answer:

Explanation:

When the buyer of goods does not pay his dues to the seller, the seller becomes an unpaid seller. ... Such rights are the seller remedies against the breach of contract by the buyer. Such rights of the unpaid seller are additional to the rights against the goods he sold.

Answer 2

$\huge{ \underline{ \overline{ \mid{ \mathfrak{ \purple{ \: \: ANSWER \: \: } \mid}}}}}$

✯ DEFINITION OF AN UNPAID SELLER ✯

The term "Unpaid seller" has been defined under the Section 45(a) of the Sale of Goods Act, 1930. According to this, the seller of goods is deemed to be an "Unpaid seller" when :-

(i) The whole of the price has not been paid or tendered and the seller had an immediate right of action for the price.

(ii) A bil of exchange or other negotiable instrument was given as payment, but the same has been dishonoured, unless this payment was an absolute, and not a conditional payment.

➤ Hence, the following conditions must be fulfilled before a seller of goods can b e deemed to be an "Unpaid seller" :

(a) He must be unpaid.

(b) He must have an immediate right of action for the price.

↬ A seller is also an "Unpaid seller" when a part of the price has been only paid.

✯ RIGHTS OF AN UNPAID SELLER ✯

➤ The rights of an Unpaid seller are discussed under two categories :

➥ Rights of an unpaid seller against the goods :

(1) Right of lien (Section 47)

(2) Right of stoppage in transit (Section 50 to 52)

(3) Right of re-sale (Section 54)

➥ Rights of an unpaid seller against the buyer :

(1) Suit for price (Section 55)

(2) Suit for damages for non-acceptance (Section 56)

(3) Repudiation of contract before due date (Section 60)

(4) Suit for interest [Section 61 (2) (d)]