What is meant by unpaid seller? What are his rights and duties in respect of goods sold by him?
Answers
Explanation:
1.The seller of goods is deemed to be an “unpaid seller” within the meaning of this Act-
a) When the whole of the price has not been paid or tendered;
b) When a bill of exchange or other negotiable instrument has been received as
conditional payment and the condition on which it was received has not been fulfilled
by reason of the dishonour of the instrument
duties are:-
Duty to inform the buyer in case of dishonor of cheque or other negotiable instrument.
Duty to deliver back the goods after the payment has been made after the exercise of right to stoppage in transit.
Duty to give notice to the carrier or bailee in possession of the goods, or to his principal for stoppage in transit.
Duty to maintain the goods in a deliverable state.
Duty to bear the expenses of redelivery when exercising his right to stoppage in transit.
rights are:-
He can reserve the right of disposal of the goods until certain conditions are fulfilled.
He can assume the acceptance of the goods by the buyer in following cases:
(i) The buyer conveys his acceptance;
(ii) Does an act
adopting the sale; or
(iii)Retains the goods without giving a notice of rejection, beyond the specified date (or reasonable time), in a sale on approval. (sec 24) 2. To ascertain and appropriate the goods to the contract of sale
3. To deliver the goods only on an application of delivery by the buyer.