Who has the right to resale goods?


The unpaid seller can resell the goods if:-

1) The seller has exercised the right of lien (or) stoppage of goods in transit.

2) Where the goods are of perishable nature (or)

3) When the seller has given notice to the buyer of his intention to resell the goods. However the notice by the seller is not required if the goods are perishable.

4) The buyer fails to pay the price within a reasonable time. If on resale after proper notice, there is a loss to the seller (i.e.., difference between the contract price and the market price), he can claim it from the buyer.

If there is any surplus on re-sale, the seller is not bound to hand it over to the buyer because the buyer cannot be allowed to take advantage of his own wrong. In case notice is not given, the unpaid seller:-

  •  Is not entitled to recover any loss on the re-sale of the goods.
  •  Is not bound to retain any surplus arising on the re-sale of the goods. The buyer is entitled to claim such surplus, if any, accruing on re-sale.

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