Plain language law

New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Sale of goods - Rights of unpaid seller against goods - Stopping goods in transit

179: Duration of transit

You could also call this:

“How long goods are considered 'in transit' when you send them to someone”

When you send goods to someone, they are considered to be ‘in transit’ from the moment you give them to a carrier (like a shipping company) until the buyer or their helper receives them. The transit ends when the buyer or their helper gets the goods, even if it’s before they reach where they were supposed to go.

If the goods arrive at their destination, the transit can end in two ways. First, if the carrier tells the buyer they have the goods and will keep them safe for the buyer. Second, if the carrier wrongly refuses to give the goods to the buyer.

It doesn’t matter if the buyer wants to send the goods somewhere else after they arrive. Also, if the buyer doesn’t want the goods and the carrier keeps them, the transit isn’t over, even if the seller doesn’t want the goods back.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844390.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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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"

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180: Goods delivered to ship chartered by buyer, or

"When goods are sent to a ship you've rented, it's not always clear who's responsible for them"

Part 3 Sale of goods
Rights of unpaid seller against goods: Stopping goods in transit

179Duration of transit

  1. Goods must be treated as being in transit from the time when the goods are delivered to a carrier by air, land, or water (or to any other bailee for the purpose of transmission to the buyer) until the buyer, or the buyer’s agent in that behalf, takes delivery of the goods from the carrier or other bailee.

  2. The transit is at an end if the buyer, or the buyer’s agent in that behalf, obtains delivery of the goods before their arrival at the appointed destination.

  3. The transit is at an end if, after the arrival of the goods at the appointed destination, the carrier or other bailee (A)—

  4. acknowledges to the buyer or the buyer’s agent that A holds the goods on the buyer’s or agent’s behalf; and
    1. continues in possession of the goods as bailee for the buyer or the buyer’s agent.

      1. For the purposes of subsection (3), it is immaterial that the buyer may have indicated a further destination for the goods.

      2. The transit must be treated as ended if the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or the buyer’s agent in that behalf.

      3. The transit is not treated as ended if the goods are rejected by the buyer and the carrier or other bailee continues in possession of the goods (even if the seller has refused to receive the goods back).

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