CA Success Path- Foundation: post #4074 — TG.ME

As per the provisions of the Sale of Goods Act, 1930, the seller of goods is deemed to be an unpaid seller when: 1) the whole of the price has not been paid. 2) A bill of exchange or other negotiable instrument has been received as conditional payment, and it has been dishonoured. Right of stoppage of goods in transit When the unpaid seller has parted with the goods to a carrier, and the buyer has become insolvent, he can exercise his right by asking the carrier to return the goods back or not to deliver the goods to the buyer. But the seller can exercise his right of stoppage of goods in transit when the following conditions are fulfilled: 1) The seller must be unpaid. 2) The seller must have parted with the possession of the goods. 3) The goods must be in the course of transit. 4) The buyer must have become insolvent.