All NotesCivil LawSale of Goods Act

Sale of Goods Act

SOGA 062 Remedies of the Seller

Remedies of the Seller under the Sale of Goods Act, 1930: Rights Against the Goods and Rights Against the Buyer Personally, Lien, Stoppage in Transit, Resale, the Suit for the Price and Damages

The seller's remedies divide on a line the Act itself draws. Some are exercised against the goods: the lien, the right of stoppage in transit, the right of resale, and the right to withhold delivery where property has not passed. These belong only to an unpaid seller, and they are valuable because they work even if the buyer has no money. The others are claims against the buyer personally: the suit for the price, damages for non-acceptance, remedies for anticipatory breach, and interest and special damages. The two groups can be used together.

1. Rights Against the Goods

  1. Lien, ss. 47 to 49. The unpaid seller in possession may retain the goods until paid, where no credit was agreed, where the credit has expired, or where the buyer is insolvent.
  2. Stoppage in transit, ss. 50 to 52. Where he has parted with possession and the buyer becomes insolvent, he may resume possession while the goods are in transit.
  3. Resale, s. 54. For perishable goods, or after notice where the buyer still does not pay, he may resell, recover damages, and keep any profit.
  4. Withholding delivery, s. 46(2). Where property has not passed, he is still the owner and has a right co-extensive with lien and stoppage.

📖 Bloxam v. Sanders, (1825) 4 B & C 941

Facts: Goods were sold and the property in them passed to the buyer, but they remained with the seller and the price was unpaid. The buyer, and those claiming under him, sought to take the goods.

Held: The seller was entitled to keep them. Although the buyer had acquired the property, his right to possession depended on payment or tender of the price. Until then the seller's lien entitled him to retain the goods against the buyer and against anyone claiming through him.

Ratio: An unpaid seller in possession may retain the goods although ownership has passed; the buyer's right to possession arises only on payment or tender.

The two groups of remedy, and the conditions attached to each

2. Rights Against the Buyer

  • Suit for the price, s. 55, where property has passed, or where the price is payable on a day certain irrespective of delivery.
  • Damages for non-acceptance, s. 56, in every other case, measured on Section 73 principles and subject to the duty to mitigate.
  • Anticipatory breach, s. 60: where the buyer repudiates before the delivery date, the seller may sue at once or keep the contract alive.
  • Interest and special damages, s. 61, including interest on the price from the date of tender or the date it became payable.
  • Charges for refusing delivery, s. 44: loss caused by the buyer's neglect, and a reasonable charge for care and custody.

3. How the Two Groups Interact

Rights against the goods

Rights against the buyer

Who has them

Only an unpaid seller, s. 45

Any seller with a claim

What they depend on

Possession, transit, or the buyer's insolvency

The passing of property, or the terms as to payment

Their value

They work even if the buyer has no money

They are only as good as the buyer's solvency

Effect on the contract

Lien and stoppage do not rescind it, s. 54(1); resale does

A suit for the price affirms it; damages follow its breach

4. The Position Stated Shortly

  1. The seller's remedies divide into rights against the goods and rights against the buyer personally.
  2. Only an unpaid seller within Section 45 has rights against the goods.
  3. Lien depends on possession; stoppage on the buyer's insolvency during transit; resale on Section 54.
  4. Bloxam v. Sanders: an unpaid seller may retain goods although property has passed.
  5. Where property has not passed, Section 46(2) gives a co-extensive right to withhold delivery.
  6. The suit for the price under Section 55 is available only in the two cases that section states.
  7. Otherwise the claim is for damages under Section 56, with interest and special damages under Section 61.