Plain language law

New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Sale of goods - Rights of unpaid seller against goods - Unpaid seller’s lien

177: When unpaid seller loses lien

You could also call this:

“When a seller can no longer keep an item they haven't been paid for”

You might sell something to someone, but they don’t pay you. In this case, you have a special right to keep the item until you get paid. This is called a lien. However, you can lose this right in three ways:

First, if you send the item to the buyer using a delivery service without saying you want to keep control of it, you lose your lien.

Second, if the buyer or someone working for them legally gets the item, you lose your lien.

Third, if you decide to give up your lien, you lose it.

Even if you go to court and win a case to get the money for the item, you still keep your lien if you haven’t lost it in one of these three ways.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844387.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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176: Part delivery, or

"Keeping some goods until you get paid for all of them"

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178: Right to stop goods in transit, or

"The seller can take back unpaid goods while they're still on the way to the buyer"

Part 3 Sale of goods
Rights of unpaid seller against goods: Unpaid seller’s lien

177When unpaid seller loses lien

  1. An unpaid seller of goods loses the seller’s lien or right of retention on the goods—

  2. when the seller delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal of the goods:
    1. when the buyer or the buyer’s agent lawfully obtains possession of the goods:
      1. by waiver of the lien or right of retention.

        1. The unpaid seller of goods who has a lien or right of retention on the goods does not lose that lien or right just because the seller has obtained judgment for the price of the goods.

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