As per the Sale of Goods Act, an unpaid seller is a seller who has not yet
received the full payment for the goods they have sold.
The rights of an unpaid seller under the Sale of Goods Act, 1930 in India are
- Right of Lien (Section 47): The unpaid seller has the right to retain
the goods until the buyer makes full payment. This right is applicable even
if the seller has delivered the goods to the buyer.
- Right of Stoppage in Transit (Section 50): If the buyer becomes
insolvent and the goods are still in transit, the unpaid seller has the
right to stop the goods and resume possession until payment is made.
- Right of Resale (Section 54): The seller, if the contract allows, or if
the buyer is in default, has the right to resell the goods and recover any
resulting losses or additional expenses.
- Right to Sue for Price (Section 55): The unpaid seller may sue the buyer
for the price of the goods if it is due, and the buyer neglects or refuses
- Right to Sue for Damages (Section 56): In case of a breach of contract,
the unpaid seller has the right to sue the buyer for damages.
These rights provide legal remedies for the unpaid seller to protect their
interests and recover the outstanding amount in the event of non-payment or
breach of contract by the buyer. The Sale of Goods Act outlines these rights to
ensure fairness and protection for sellers in commercial transactions.