CA Success Path- Foundation: post #4078 — TG.ME

The unpaid seller can exercise the right of resale under the following conditions: 1) Where the goods are of a perishable nature: In such a case, the buyer needs to be informed of the intention of resale. 2) Where he gives notice to the buyer of his intention to resell the goods: If, after the receipt of such notice, the buyer fails within a reasonable time to pay or tender the price, the seller may resell the goods. It may be noted that in such cases, on the resale of goods, the seller is also entitled to: ✓ Recover the difference between the contract price and resale price, from the original buyer, as damages. ✓ Retain the profits if the resale price is higher than the contract price. The seller can recover damages and retain the profits only when the goods are resold after giving the notice of resale to the buyer. 3) Where an unpaid seller who has exercised his right of lien or stoppage in transit resells the goods: The subsequent buyer acquires a good title thereof as against the original buyer, despite the fact that the notice of resale has not been given by the seller to the original buyer. 4) A resale by the seller where a right of resale is expressly reserved in a contract of sale: Sometimes, it is expressly agreed between the seller and the buyer that in case the buyer makes a default in the payment of the price, the seller will resell the goods to some other person. In such cases, the seller is said to have reserved his right of resale, and he may resell the goods on the buyer’s default. ✓ In such cases, the seller is not required to give notice of resale. He is entitled to recover damages from the original buyer even if notice of resale is given