Unpaid Seller Case Study

947 Words2 Pages

UNPAID SELLER Seller: - A person who sells the goods or agrees to sell the goods is called seller. Unpaid: - It means payment is not made or without payment. In the above given case we can say that Miss Priya is the seller while Mr. Ravil is the customer or purchaser of goods. Miss Priya has sold jewelry worth 6 lacs to Mr. Ravil and in exchange received a cheque for the full amount. This cheque on presentment to the bank, was dishonored. Therefore Miss Priya becomes an ‘unpaid seller’. The term ‘unpaid seller’ is defined under Section 45(a) of the Sale Of Goods Act, 1930. It states that the seller of the goods is treated as an unpaid seller when the following situations are satisfied; a. The price for the goods is not paid in full by the buyer to …show more content…

She can also provide instructions to send the goods back during their transport. Even when the buyer becomes insolvent, an unpaid seller has a right of stopping the goods in transit. 3. Right Of Resale: The seller Miss Priya has full authority to resell the goods that were earlier provided to Mr. Ravil who has not paid for them. Since no payment has been received, Miss Priya can sell the goods to some other buyer. However, if part payment has been received from the party, the goods can be returned only to the original buyer. But in the above case Mr. Ravil has not made any part payment. An unpaid seller is considered the owner of the goods until not paid by the buyer. So Miss Priya has a right to sell her goods subject to the above conditions. 4. Right Of Delivery: The unpaid seller has a right of withholding the delivery of goods where the property that is the goods has not passed to the buyer. But in our case the jewelry has already been delivered to Mr. Ravil and hence the right of delivery cannot be utilized by Miss

More about Unpaid Seller Case Study

Open Document