Question 3 OR (a)

Stoppage in transit as an extension of the unpaid seller's lien

6 marks

Time to write
About 12 minutes
Topic
Unpaid seller

Question

Question 3 OR (a) · 6 marks

(OR)

  1. “For an unpaid seller, the right of stoppage in transit extends the right of lien”. Comment.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

12 minfor 6 marks

Read from the question

  • CommentA statement to judge: take a stand on it in your first line, and come back to it at the end.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Lien 2 marks 3 min
  3. 2 Stoppage in transit 2 marks 3 min
  4. 3 Distinction and conclusion 2 marks 3 min
  5. Check: every ask answered, key terms underlined 2 min

Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks.

Try it first. About 12 minutes for 6 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Lien. A seller who has not been paid and is still in possession of the goods may retain them, refusing delivery until the price is paid or tendered. The essence of lien is to retain possession; the seller must be in possession; and the right can be exercised even when the buyer is not insolvent.

Picture itStoppage in transit as an extension of the unpaid seller's lien

1No payment yet, so Karim locks the crates and folds his arms—the goods stay with him.

LienThe right to retain the goods in his possession until payment or tender of the price.

2Word comes that the buyer has gone broke: he races the truck down the highway to stop it.

Stoppage in transitWhere the buyer becomes insolvent, the right to stop the goods while they are in the course of transit.

3The mangoes will not wait, so he sells them fresh to the next buyer at the market.

ResaleWhere the goods are perishable.

Stoppage in transit (s. 50). An unpaid seller who has parted with possession of the goods may stop them while they are in transit, when the buyer has become insolvent. He does so by taking actual possession of the goods or by giving notice to the carrier not to deliver them; the carrier must then re-deliver them according to the seller's directions, at the seller's expense.

Distinction:

  1. Lien is a right to retain possession; stoppage in transit is a right to regain it.
  2. Lien needs the seller to be in possession; stoppage needs him to have parted with possession to a carrier before the buyer acquires it.
  3. Lien can be exercised even when the buyer is not insolvent; stoppage only on the buyer's insolvency.
  4. The right of stoppage begins when the right of lien ends.

Conclusion. The statement is correct in this sense: once the seller has parted with the goods and lost his lien, stoppage in transit carries his security forward, letting him recover possession while the goods are still in transit to an insolvent buyer.

Where the 6 marks sit

#ComponentMarks
1Lien2
2Stoppage in transit2
3Distinction and conclusion2
Total6
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