Question

What are the rights of an unpaid vendor

Answer 1

Explanation:

Right of Lien. The right of lien is the right to retain possession of the goods until payment for the same is made. ...

Right of stoppage in transit. It is a right of stopping the goods while in transit after the unpaid seller has lost possession of the goods.

Answer 2

The seller is an unpaid vendor if the buyer does not pay its duties to the seller. Now the seller has certain protection against the purchaser. These rights are remedies for the seller against the customer's breach of a contract. These rights are in addition to the protection against the goods sold by the unpaid seller.

Explanation:

• If the property of the goods is transferred under the selling contract, but the buyer fails to pay for goods, it is a seller who is unpaid vendor. In that scenario. The seller can sue the buyer for not being able to pay off his debt or wrongly refusing to pay.
• If the buyer fails to accept or refuses to pay the unpaid seller, the seller is entitled to sue the buyer for damage due to his inability to accept the goods. The seller will face some losses, because the buyer declined to buy without any good cause.
• If a buyer rejects the contract, then the seller will still be entitled to compensation for damages before the delivery date. Such a contract is called a contract rescinded and the seller may sue for breach of the agreement.
• If the parties have a mutual agreement, the seller can sue the buyer for the interest owing to him. The interest rate to be paid to the seller from the date on which payment becomes due shall be expressly negotiated by all parties.
• Under section 47 (1), an unpaid seller in possession of the goods (acting as an agent or bailee for the buyer). that maintain its possession until payment has been made, pursuant to Section 47 of the Selling of goods Act, 1930.
• It is a right to stop the goods when the unpaid seller loses control of the goods. The seller may reclaim possession with this right. The unpaid seller has this right when the buyer is insolvent and the goods are in transit. Goods shall be considered to be in transit if they are shipped for transmission to the buyer to a carrier or other bailee until the buyer or his agent takes delivery of them.
• If the products have a perishable value, the unpaid seller will re-sell the products. It can also resell the goods if it has communicated its intention to re-sell to the buyer and if the buyer may not have paid the price within a reasonable period. When the seller is on resale, he may be able to demand the same damages from the buyer for violation of the contract.If there is a profit on resale, he is not bound to hand it over to the buyer