stoppage in transit

There are three possible remedies against the goods - lien, stoppage in transit and resale.

He must also have exercised his right of lien or retention or stoppage in transit.

With one exception, the right of stoppage in transit is lost in the same circumstances as is the seller's lien.

Section 46 deals with how stoppage in transit may be effected, by the seller either taking actual possession of the goods or giving notice of his claim to the carrier.

To be sure, this may be a partial and limited right of control because the consignor may have retained a right to change the consignee while conveying the right of stoppage in transit.

'(1) Subject to this section, a contract of sale is not rescinded by the mere exercise by an unpaid seller of his right of lien or retention or stoppage in transit.'

Although delivery to a carrier without the reservation of a right of disposal terminates the unpaid seller's lien, he may still be able to recover the goods by exercising his right of stoppage in transit.

'(2) Where an unpaid seller who has exercised his right of lien or retention or stoppage in transit re-sells the goods, the buyer acquires a good title to them as against the original buyer.'

'(1) Subject to this Act, the unpaid seller's right of lien or retention or stoppage in transit is not affected by any sale, or other disposition of the goods which the buyer may have made, unless the seller has assented to it.