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Contract and Commercial Law Act 2017

Sale of goods - Rights of unpaid seller against goods

173: Unpaid seller defined

You could also call this:

“What it means to be an unpaid seller of goods”

You are considered an unpaid seller if you sell goods and haven’t received all the money for them yet. This can happen in two ways:

First, if the buyer hasn’t paid you all the money they owe you or offered to pay you.

Second, if the buyer gave you a special kind of payment promise, like a cheque, but that promise didn’t work out. For example, if the cheque bounced.

When we talk about a seller, we don’t just mean the person who owns the goods. It can also be someone working for the seller, like their helper. It might be someone who has the paperwork that shows they own the goods, or someone who sent the goods to the buyer. It could even be someone who paid for the goods themselves or is responsible for paying for them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844380.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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172: Liability of buyer for neglecting or refusing to take delivery of goods, or

"What happens if you don't pick up something you bought when it's ready"

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174: Unpaid seller's rights, or

"What you can do if someone doesn't pay you for goods you sold them"

Part 3 Sale of goods
Rights of unpaid seller against goods

173Unpaid seller defined

  1. A seller of goods must be treated as being an unpaid seller, within the meaning of this Part,—

  2. if the whole of the price has not been paid or tendered:
    1. if a bill of exchange or other negotiable instrument has been received as a conditional payment but the condition on which it was received has not been fulfilled because of the dishonour of the instrument or otherwise.

      1. In this subpart, seller includes a person who is in the position of a seller (for example, an agent of the seller to whom the bill of lading has been endorsed or a consignor or an agent who has paid or is directly responsible for the price).

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