Sale of Goods Act Section 52 — How stoppage in transit is effected

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

Commercial / Corporate

Summary

Sub-section (1) explains the two ways an unpaid seller can stop goods that are still in transit. The seller can either take actual physical possession of the goods, or give notice of the claim to the carrier or other bailee who currently holds the goods. This notice can be given either to the person who actually has the goods, or to that person's principal (the person they answer to). If the notice is given to the principal instead of the person in actual possession, it will only be effective if it is given at a time and under circumstances where the principal, using reasonable effort, can pass the message on to their servant or agent in time to stop the delivery to the buyer.

Sub-section (2) states that when the seller gives notice of stoppage in transit to the carrier or other bailee who has the goods, that carrier or bailee must re-deliver the goods to the seller, or follow the seller's directions for where to send them. The costs of this re-delivery are to be paid by the seller.

Official Text

(1) The unpaid sellermay exercise his right of stoppage in transit either by taking actual possession of the goods, or by giving notice of his claim to the carrier or other bailee in whose possession the goods are. Such notice may be given either to the person in actual possession of the goods or to his principal. In the latter case the notice, to be effectual, shall be given at such time and in such circumstances that the principal, by the exercise of reasonable diligence, may communicate it to his servant or agent in time to prevent a delivery to the buyer.

(2) When notice of stoppage in transit is given by the seller to the carrier or other bailee in possession of the goods, he shall re-deliver the goods to, or according to the directions of, the seller. The expenses of such re-delivery shall be borne by the seller.