Unpaid Seller's Lien

The Sale of Goods Act, 1930 (hereinafter referred to as the "Act") defines an unpaid seller as a seller that has not been paid the full price of the goods that have been sold or that has received a bill of exchange or other negotiable instrument as conditional payment, and the condition on which it was received has not been fulfilled.¹

Interestingly, the position of the seller's agent may sometimes be akin to that of the seller insofar as exercising the rights of an unpaid seller are concerned.

For instance, an agent of the seller to whom the bill of lading has been endorsed or who has paid the price of the goods or is directly responsible to the seller for the price of the goods is also deemed to be an unpaid seller.²