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Section 58: Effect of buyer's sub-sale or pledge on seller's rights

58.Effect of sub-sale or pledge by buyer

(1)Subject to this Act, the unpaid seller's right of lien or retention or stoppage in transit is not affected by any sale or other disposition of the goods which the buyer has made, unless the seller has assented to it.

(2)The unpaid seller's right of lien or retention or stoppage in transit shall be defeated where a document of title to goods has been lawfully transferred to any person as a buyer or owner and that person, by way of sale transfers the document to a person who takes the document in good faith and for valuable consideration.

(3)Where under subsection (2) the transfer was by way of pledge or other disposition for value, the unpaid seller's right of lien or retention or stoppage in transit can only be exercised subject to the rights of the transferee.

Plain English Summary

An unpaid seller's right to hold onto goods (lien), keep them, or stop them in transit is not automatically lost if the buyer resells or pledges the g...

AI-generated, for reference only.

🔍Search Tips
  • • Search by keyword: "land", "tax", "arrest"
  • • Use exact phrases: "land commission"
  • • Enter citations: 45, 45(3)(a), 45:3:a
  • • Press / to search, Esc to close

Searching within Sale of Goods and Supply of Services Act. Faster results.