Define ‘Unpaid Seller’

Section 45 define an unpaid seller as “One who has not been paid or tendered the whole of the price or one who  receives a bill of exchange or other negotiable instrument as conditional payment and the condition on which it was  received has not been fulfilled by reason of dishonour of the instrument or otherwise.”

The following conditions must be fulfilled before a seller can be deemed to be an unpaid seller –

a)      He must be unpaid and the price must be due.

b)      He must have an immediate right of action for the price.

c)      A bill of exchange or other negotiable instrument was received but the same has been dishonoured.

The rights of an unpaid seller can be broadly divided under 2 main headings –

I] Rights against the goods and

II] Rights against the buyer