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Contract and Commercial Law Act 2017

Sale of goods - Rights of unpaid seller against goods - Resale by buyer or seller

187: Sale not generally rescinded by lien or stopping goods in transit

You could also call this:

“Seller's rights to hold or stop goods don't usually cancel the sale”

If you’re a seller and you haven’t been paid for goods you sold, you have some rights. You can keep the goods until you’re paid (this is called a lien), or you can stop the goods from being delivered if they’re on their way to the buyer. Even if you use these rights, it doesn’t mean the sale is cancelled. The sale still stands unless something else in sections 188 to 190 of this law says otherwise.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844403.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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186: Transfer of document of title to person in good faith and for valuable consideration, or

"How goods ownership papers affect buyer and seller rights"

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188: Buyer’s title on resale, or

"New buyers get to keep goods that were resold because the first buyer didn't pay"

Part 3 Sale of goods
Rights of unpaid seller against goods: Resale by buyer or seller

187Sale not generally rescinded by lien or stopping goods in transit

  1. A contract of sale is not rescinded merely by the exercise by an unpaid seller of the seller’s right of lien, retention, or stopping the goods in transit.

  2. This section is subject to sections 188 to 190.

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