Coupon Accepted Successfully!



In a transaction of credit sales there is a risk of a debtor not paying the price of the goods even after the credit period is over. The seller, as an unpaid seller, must possess some rights which he can use to secure payment of the price. The Sale of Goods Act has made elaborate provisions regarding the rights of an unpaid seller
According to Sec 45 the seller of the goods is an unpaid seller:
  • When whole or part of the price of the goods sold has not been paid or tendered
  • When a bill of exchange or other negotiable instrument has been received as conditional payment and the conditions on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise

Note: The seller is not an unpaid seller if the buyer has tendered (i.e. offered to pay) the price and the seller has refused to accept it. In such cases, the seller loses all rights as an unpaid seller.



Raj sold goods worth ₹ 10,000 to Kapoor and issued a bill of exchange of 2 months. Raj will not be considered as unpaid seller during the period of 2 months. Raj will become unpaid seller, when the price remains unpaid even after the expiry of period of 2 months i.e. when the bill of exchange gets dishonoured.

Test Your Skills Now!
Take a Quiz now
Reviewer Name