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Contract and Commercial Law Act 2017

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

188: Buyer’s title on resale

You could also call this:

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

If you buy something and don’t pay for it, the seller can hold onto the goods or stop them from being delivered to you. If the seller then decides to sell these goods to someone else, that new buyer gets to keep the goods. This means you, as the original buyer who didn’t pay, can’t claim the goods back from the new buyer. The new buyer now owns the goods fair and square, even though you were supposed to buy them first.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844404.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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187: Sale not generally rescinded by lien or stopping goods in transit, or

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

Next

189: Resale in case of perishable goods or notice of intention to resell, or

"What happens if you don't pay for perishable goods or goods the seller wants to resell quickly"

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

188Buyer’s title on resale

  1. If an unpaid seller of goods who has exercised the seller’s right of lien, retention, or stopping the goods in transit resells the goods, the buyer acquires a good title to the goods as against the original buyer.

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