Sale of Goods Act Section 50 — Right of stoppage in transit

CHAPTER V RIGHTS OF UNPAID SELLER AGAINST THE GOODS — Stoppage in transit

Commercial / Corporate

Summary

Subject to the rest of this Act, if the buyer becomes insolvent, an unpaid seller who has already given up possession of the goods has the right to stop them while they are in transit. This means the seller can take back possession of the goods for as long as they are still on their way to the buyer, and can hold onto them until the price is paid or offered.

Official Text

Subject to the provisions of this Act, when the buyer of goods becomes insolvent, the unpaid seller who has parted with the possession of the goods has the right of stopping them in transit, that is to say, he may resume possession of the goods as long as they are in the course of transit, and may retain them until payment or tender of the price.