Exercise of right of lien:
This right can be exercised by him in the following cases only:
(a) where goods have been sold without any stipulation of credit; ( i.e., on cash sale)
(b) where goods have been sold on credit but the term of credit has expired; or
(c) where the buyer becomes insolvent.
Example:
(a) where goods have been sold without any stipulation of credit; ( i.e., on cash sale)
(b) where goods have been sold on credit but the term of credit has expired; or
(c) where the buyer becomes insolvent.
Example:
A sold certain goods to B for a price ` 50,000 and allowed him to pay the price within one month. B becomes insolvent during this period of credit. A, the unpaid seller, can exercise his right of lien.
Seller may exercise his right of lien even where he is in possession of the goods as agent or bailee for the buyer.
The term insolvent refers to “a person is said to be insolvent who has ceased to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed an act of insolvency or not”.
Seller may exercise his right of lien even where he is in possession of the goods as agent or bailee for the buyer.
The term insolvent refers to “a person is said to be insolvent who has ceased to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed an act of insolvency or not”.
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