Rights of Buyers And Sellers . Unpaid Sellers
Rights of unpaid Sellers
Important Question for Exam.
Define the term “Unpaid Seller”? Briefly explain the rights of unpaid seller against the Goods.
Answer:
Definition of Unpaid seller:
The seller of the goods is deemed to be ‘unpaid seller’ within the meaning of this Act-
• when the whole of the price has not been paid or tendered;
• 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
instruments or otherwise;
Section 45(2) defines the term ‘seller’ as including any person who is in the position of a seller as an agent of
the seller to whom the bill of lading has been endorsed or a consignor or agent who has himself paid, is
directly responsible for the price.
Rights of an Unpaid Seller against the Goods
An unpaid seller’s right against the goods are:
(a) A lien or right of retention
(b) The right of stoppage in transit.
(c) The right of resale.
(d) The right to withhold delivery.
Q.Write a short note on auction sale
Answer:
Auction sale
Section 64 provides that in the case of a sale by auction-
• where goods are put up for sale in lots, each lot is prima facie deemed to be the subject of a separate
contract of sale;
• the sale is complete when the auctioneer announces its completion by the fall of the hammer or in other
customary manner; and until such announcement is made, any bidder may retract its bid;
• a right to bid may be reserved expressly by or on behalf of the seller and, where such right is expressly so
reserved, but not otherwise, the seller or any one person on his behalf may, subject to the provisions
hereinafter contained, bit at the auction;
• where the sale is not notified to the subject to a right to bid on behalf of the seller, it shall not be lawful for
the seller to bid himself or to employ any person to bid at such sale, or for the auctioneer knowingly to
take any bid from the seller or any such person; and any sale contravening this rule may be treated as
fraudulent by the buyer;
• the sale may be notified to be subject to a reserved or set up price;
• if the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the
buyer..
Thanks for watching
#subscribe us ,like us
0 Comments