1528-1535

Shiela C. Azon
BS Accountancy IV

Rights of an Unpaid Seller

Possessory

Lien
Stoppage in transitu
Special Right of Resale
Right to Rescind the sale
Right to enforce payment

Art. 1528 Possessory Lien

GR: If Unpaid seller has made part
delivery of the goods, he may exercise
his right of lien on the remainder.
Exception: unless the seller waived the
lien on the remaining part for delivery.

Art. 1529 Instances when

Possessory Lien is lost:
1)

2)

3)

Sellers Delivers goods to carriers for

transmission to the buyer without
reserving the ownership or right of
possession;
Buyer or his agent lawfully obtains
possession of goods;
By waiver thereof.

Art. 1530 Right of Stoppage

Transitu

Requisites:
Buyer is or becomes insolvent
Goods are in transit

Right of unpaid seller to resume

possession of the goods sold while in
transit by virtue of which he will then
be entitled to the same rights he would
have if he had never parted
possession.

Art. 1531 Goods are in

transit :

From the time the goods are delivered

to a carrier for the purpose of
transmission to the buyer.

If the goods are rejected by the buyer,

and the carrier continues in possession
of them.

Art. 1531 Goods are no longer

in transit:
Reached point of destination
Before reaching destination, buyer met
seller along the way
When carrier wrongfully refused to
deliver the goods to the buyer.

Art. 1532. Right of stoppage in

transitu may be exercised by:
obtaining actual possession of the goods
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
to his principal.

Art. 1533 Right to Resell Goods

When right of resale is available:

Goods are perishable
Right of resale is stipulated in case buyer
defaults in payment
Buyer is guilty of unreasonable default in
the payment of the price.

Art. 1533.

The seller is bound to exercise

reasonable care and judgment in
making a resale, and subject to this
requirement may make a resale either
by public or private sale. He cannot,
however, directly or indirectly buy the
goods. (n)

Art. 1534 Right to Rescind

Requisites of recission:
Seller is unpaid
Seller has right of lien on the goods
Seller reserves his right of rescission if the buyer
makes default
The buyer has been in default for an
unreasonable time

Art. 1534 Right to Rescind

Acts of Rescission
By giving notice to the buyer
By performing an overt act showing an intention
to rescind the sale

Art. 1535 Negotiable Document of

Title

If it has been issued for goods, no seller's

lien or right of stoppage in transitu shall
defeat the right of any purchaser for value
in good faith to whom such document has
been negotiated,