Legal Rights of Unpaid Sellers and Contract Law Principles
Rights of an Unpaid Seller
An unpaid seller is a seller who has not received the full price of the goods sold. There are several important rights granted to them:
- Right of Lien: The unpaid seller has the right to retain possession of the goods until the buyer pays the price in full.
- Right of Stoppage in Transit: If the buyer becomes insolvent, the seller can stop the goods while they are in transit and regain possession of them.
- Right of Resale: The seller can resell the goods under certain circumstances,
International Trade Invoicing and Payment Methods
Pro Forma vs. Commercial Invoices
A pro forma invoice is a sales document issued by the seller (exporter) before goods are delivered. It has no fiscal value and does not require payment; it serves as a quotation for customs declarations or import licenses. Conversely, a commercial invoice is a legal document issued after shipment that requests payment. It includes party details, goods description, quantity, unit price, total price (including VAT), and transport/payment terms.
E-Invoicing Benefits
E-
Read MoreBusiness Entities in Slovakia: Legal Structures Explained
1. Sole Proprietorship
Conditions: General (age 18+, legal capacity, clean record) and specific (education/practice).
Types based on capability:
- Handicraft: Requires apprentice certificate.
- Bounded: Requires special certification.
- Free: No specific qualifications needed.
Liability: Unlimited (personal assets included).
2. Ordinary Partnership (V.O.S.)
At least 2 partners under a common business name.
- Liability: Unlimited & joint (liable for all debts).
- Profit: Divided equally (if no initial capital) or
Essential Elements and Types of Negotiable Instruments
Essential Elements of a Bill of Exchange
A bill of exchange is a written instrument containing an unconditional order given by one person to another, directing them to pay a certain sum of money to a specified person or to the bearer of the instrument. It is an important negotiable instrument governed by the Negotiable Instruments Act, 1881.
For a document to be considered a valid bill of exchange, the following essential elements must be present:
1. It Must Be in Writing
A bill of exchange must always
Read MoreSale of Goods Act 1930 — Price, Title, Transfer & Remedies
Here are the key concepts of Price, Conditions and Warranties, Transfer of Ownership, and Performance under the Sale of Goods Act, 1930.
Price (Sections 2(10), 9, 10)
The price is the monetary consideration for a contract of sale of goods. It is an essential element, since a transfer of goods for anything other than money is treated as barter, not a sale under the Act.
Ascertainment of Price (Section 9)
The price in a contract of sale may be fixed in any of the following ways:
| Mode of Fixing Price | Description |
|---|---|
| Fixed |
Auction Sales, Online Auctions & Partnership Laws in India
Auction Sale and Online Auction (Section 64)
An Auction Sale is a public sale where goods are offered to the public, and competition is invited in the form of bids. The sale is complete when the auctioneer signifies acceptance, usually by the fall of the hammer.
Rules Governing Auction Sale (Section 64)
- Separate Contract for Each Lot: Where goods are put up for sale in lots, each lot is prima facie deemed to be the subject of a separate contract of sale.
- Completion of Sale: The sale is complete when