Right of lien and stoppage in transit preserves seller's contract position but permits resale and damages. An unpaid seller's exercise of the right of lien or stoppage in transit does not rescind the contract. If goods are perishable or the seller gives notice of intention to re-sell and the buyer fails to pay within a reasonable time, the seller may re-sell and recover damages but the buyer cannot claim any profit on re-sale; absent such notice the seller cannot recover damages and the buyer takes any profit. A purchaser from a re-selling unpaid seller acquires a good title against the original buyer even without notice, and an express reservation of a right of re-sale followed by re-sale rescinds the original contract while preserving the seller's claim for damages.
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.
Right of lien and stoppage in transit preserves seller's contract position but permits resale and damages.
An unpaid seller's exercise of the right of lien or stoppage in transit does not rescind the contract. If goods are perishable or the seller gives notice of intention to re-sell and the buyer fails to pay within a reasonable time, the seller may re-sell and recover damages but the buyer cannot claim any profit on re-sale; absent such notice the seller cannot recover damages and the buyer takes any profit. A purchaser from a re-selling unpaid seller acquires a good title against the original buyer even without notice, and an express reservation of a right of re-sale followed by re-sale rescinds the original contract while preserving the seller's claim for damages.
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