Unpaid seller's lien and stoppage in transit defeated where document of title is transferred in good faith by sale. Unpaid seller's lien and stoppage in transit remain effective against buyer dispositions unless the seller assents; however, a document of title lawfully transferred to a bona fide purchaser for value by sale defeats those rights, while transfers by pledge or other dispositions for value limit the seller's rights to those subject to the transferee's rights. Where transferred by pledge, the unpaid seller may require the pledgee to satisfy the secured amount first from any other goods or securities of the buyer in the pledgee's hands available against the buyer.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Unpaid seller's lien and stoppage in transit defeated where document of title is transferred in good faith by sale.
Unpaid seller's lien and stoppage in transit remain effective against buyer dispositions unless the seller assents; however, a document of title lawfully transferred to a bona fide purchaser for value by sale defeats those rights, while transfers by pledge or other dispositions for value limit the seller's rights to those subject to the transferee's rights. Where transferred by pledge, the unpaid seller may require the pledgee to satisfy the secured amount first from any other goods or securities of the buyer in the pledgee's hands available against the buyer.
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