Define an unpaid seller. What are his rights?

Unpaid Seller: Definition and Rights

Definition of Unpaid Seller:

• An unpaid seller refers to a seller of goods who has not yet received the full payment for the goods sold or the payment has been dishonored.
• The term applies to both the seller who retains possession of the goods and the seller who has transferred possession to the buyer but has not yet received payment.

Rights of an Unpaid Seller:

1. Right to Lien:

   • An unpaid seller has the right to retain possession of the goods until payment or tender of the price.
   • This right is available to the seller even if the property in the goods has passed to the buyer.

2. Right to Stoppage in Transit:

   • If the buyer becomes insolvent and the goods are in transit, the unpaid seller has the right to stop the goods and resume possession.
   • This right can be exercised even after the goods are in the possession of a carrier or other third party.

3. Right to Resell the Goods:

   • If the seller has the right of lien or stoppage in transit and the buyer fails to pay within a reasonable time, the seller may resell the goods.
   • The seller can recover any damages from the original buyer for the loss incurred in the resale.

4. Right of Withholding Delivery:

   • If the seller has delivered part of the goods but the buyer fails to pay for the rest, the seller may withhold delivery of the remaining goods.
   • This right is subject to the seller's duty to mitigate damages.

5. Right to Sue for Price:

   • The unpaid seller may sue the buyer for the price of the goods if:
     • The property in the goods has passed to the buyer.
     • The price is due under the contract, and the buyer refuses to pay.

6. Right to Sue for Damages:

   • In addition to suing for the price, the seller may also sue for damages for non-acceptance or repudiation of the contract by the buyer.
   • The seller can claim the difference between the contract price and the market price at the time of the breach.

Conclusion:
In conclusion, an unpaid seller is a seller who has not received full payment for the goods sold. Such a seller has several rights, including the right to retain possession of the goods, the right to stoppage in transit, the right to resell the goods, the right of withholding delivery, the right to sue for the price, and the right to sue for damages. These rights help protect the seller's interests in cases where the buyer fails to fulfill their payment obligations.