NOTES


CA-Foundation > Business Laws > The Sale of Goods Act, 1930 - Unpaid Seller and Auction Sale (Old & New)

State the difference between Right of lien and Right of Stoppage in transit.



Ans.

DISTINCTION BETWEEN RIGHT OF LIEN AND STOPPAGE IN TRANSIT

(1) The essence of lien is to retain possession while the essence of the stoppage in transit is to regain possession.

(2) The right of lien is applicable to goods, which are in the possession of the seller. The right of stoppage in transit is applicable to the goods, which are in possession of the carrier.

(3) The right of stoppage in transit is applicable to the insolvent buyer. But the right of lien is applicable to all persons, solvent or insolvent.

(4) The right of stoppage in transit is applied to the buyer through the earner. Therefore stoppage means the seller's right to 'regain' the goods. But he means the right to 'retain' the goods. Of course both the rights are applicable to goods only.

(5) When the right of lien ends the right to stop in transit begins.


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Notes of The Sale of Goods Act, 1930 - Unpaid Seller and Auction Sale (Old & New)



  1. Sale and agreement to sale
    see in detail

  2. When does the transit end?
    see in detail

  3. What are the rules regarding right of lien?
    see in detail

  4. State the difference between Right of lien and Right of Stoppage in transit.
    see in detail

  5. When can an unpaid seller again sell the goods to another person?
    see in detail


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