Sale of Goods Act Section 51 — Duration of transit
CHAPTER V RIGHTS OF UNPAID SELLER AGAINST THE GOODS — Stoppage in transit
Commercial / Corporate
Summary
Sub-section (1) explains that goods are considered to be in transit from the moment they are handed over to a carrier or other bailee for delivery to the buyer, and this continues until the buyer or their authorised agent actually takes delivery from that carrier or bailee.
Sub-section (2) states that if the buyer or their authorised agent takes delivery of the goods before they reach the agreed destination, the transit ends at that earlier point.
Sub-section (3) provides that if, after the goods arrive at the agreed destination, the carrier or other bailee tells the buyer or their agent that they are now holding the goods on the buyer's behalf and continues to possess them as a bailee for the buyer, the transit ends. This applies even if the buyer had indicated a further destination for the goods.
Sub-section (4) says that if the buyer rejects the goods and the carrier or other bailee continues to hold them, the transit is not considered to have ended, even if the seller has refused to take the goods back.
Sub-section (5) deals with goods delivered to a ship that the buyer has chartered. It states that whether the ship's master holds the goods as a carrier or as the buyer's agent depends on the specific facts of each case.
Sub-section (6) provides that if the carrier or other bailee wrongly refuses to hand over the goods to the buyer or their authorised agent, the transit is considered to have ended.
Sub-section (7) explains that if only part of the goods has been delivered to the buyer or their agent, the remaining goods can still be stopped in transit, unless the partial delivery was made in a way that shows an agreement to give up possession of the entire consignment.
Official Text
(1) Goods are deemed to be in course of transit from the time when they are delivered to a carrier or other bailee for the purpose of transmission to the buyer, until the buyer or his agent in that behalf takes delivery of them from such carrier or other bailee.
(2) If the buyer or his agent in that behalf obtains delivery of the goods before their arrival at the appointed destination, the transit is at an end.
(3) If, after the arrival of the goods at the appointed destination, the carrier or other bailee acknowledges to the buyer or his agent that he holds the goods on his behalf and continues in possession of them as bailee for the buyer or his agent, the transit is at an end and it is immaterial that a further destination for the goods may have been indicated by the buyer.
(4) If the goods are rejected by the buyer and the carrier or other bailee continues in possession of them, the transit is not deemed to be at an end, even if the seller has refused to receive them back.
(5) When goods are delivered to a ship chartered by the buyer, it is a question depending on the circumstances of the particular case, whether they are in the possession of the master as a carrier or as agent of the buyer.
(6) Where the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that behalf, the transit is deemed to be at an end.
(7) Where part delivery of the goods has been made to the buyer or his agent in that behalf, the remainder of the goods may be stopped in transit, unless such part delivery has been given in such circumstances as to show an agreement to give up possession of the whole of the goods.