Define: Stoppage

Stoppage refers to the legal right of a seller to withhold delivery of goods to a buyer in certain circumstances, such as when the buyer becomes insolvent or fails to make payment.

A seller can exercise the right of stoppage when the buyer becomes insolvent, fails to make payment, or breaches the terms of the contract.

Stoppage allows the seller to regain possession of the goods and prevent their delivery to an insolvent or non-paying buyer. This helps protect the seller’s financial interests and prevents potential losses.

No, stoppage can only be exercised before the goods are delivered to the buyer. Once the goods are in the buyer’s possession, the seller’s right to stoppage ceases.

To exercise stoppage, the seller must have a valid reason, such as the buyer’s insolvency or non-payment, and must act promptly to notify the carrier or other relevant parties involved in the delivery process.

Yes, a buyer can challenge a seller’s decision to exercise stoppage if they believe it was done without valid grounds or in violation of the terms of the contract. In such cases, legal action may be necessary to resolve the dispute.

If a seller successfully exercises stoppage, they may be entitled to recover the goods, cancel the contract, or seek damages for any losses suffered as a result of the buyer’s breach or insolvency.

Yes, the right of stoppage is subject to certain limitations, such as time limits for exercising the right and the requirement to provide timely notice to the relevant parties involved in the delivery process.

In some cases, a seller may still be able to exercise stoppage even if the goods have been resold to a third party. However, the specific circumstances and applicable laws will determine the seller’s rights in such situations.

Yes, if a seller wrongfully exercises stoppage without valid grounds or in violation of the terms of the contract, the buyer may be entitled to seek compensation for any losses or damages suffered as a result.