When the seller has parted with the possession of goods, he may regain and retain such possession by stopping the goods in transit, from being delivered to the buyer. This right is available (1) when the goods are in transit and (2) when the buyer becomes bankrupt.
Following are the rules regarding duration of transit
a)Â Â Â Goods are deemed to be in transit so long as the buyer or his agent does not take delivery of the goods
b)Â Â Â The transit is at an end, when the buyer or his agent obtains delivery before the arrival of the goods at their destination
c)Â Â Â The transit is at an end, if the carrier or other bailee acknowledges to the buyer after the arrival of the goods at the destination the he holds the possession of goods as a bailee for the buyer.
d)Â Â Â The goods are in transit, if the buyer or his agent rejects the goods.
e)Â Â Â The transit is at an end if the carrier or other bailee wrongfully refuses to deliver the goods to the buyer.
The unpaid vendor must give notice of his claim to the carrier or other bailee, who is in possession of the goods, in order to exercise this right of stoppage. Such notice takes effect when it reaches the carrier or his agent who is in actual possession of goods. On receipt of notice of the stoppage, the carrier must re-deliver the goods to or according to the directions of the seller. The seller shall have to bear the expenses of such re-delivery.
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