Distinguish between right of lien and right of stoppage in transit

by • 24/06/2013 • GeneralComments (0)452

 

Q.9      Distinguish between right of lien and right of stoppage in transit.

Ans:

Basis of distinction

Right of lien

Rights of stoppage in transit

1.

Possession of goods The goods must be in actual possession of the seller The goods must be in the possession of a carrier or other bailee who is acting as an independent person.

2.

Solvency The right can be exercised even when the buyer is solvent but refuses to pay the price. This right can be exercised only when the buyer has become insolvent.

3.

End Vs. commencement on delivery to carrier. The right comes to an end when the seller delivers the goods to a carrier. This right commences only when the seller delivers the goods to a carrier.

4.

Purpose The seller himself can exercise this right. The purpose of this right is to regain the possession of the goods.

5.

Mode of exercising the right The seller himself can exercise this right. The seller through the carrier or the other bailee can exercise this right.

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