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New Zealand law explained for everyone

Contract and Commercial Law Act 2017

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

190: Express power of sale

You could also call this:

“Seller can resell if buyer backs out of purchase”

If you are selling something, you can include a rule that says you can sell the item to someone else if the original buyer doesn’t follow through with the purchase. This is called an express power of sale. If you do this and the buyer doesn’t complete the purchase, you can sell the item to another person. When this happens, the first agreement to sell is cancelled. However, you can still ask the first buyer for money to cover any losses you had because of their failure to buy.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844406.

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

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191: Claim for price, or

"Seller can ask for payment when goods are sold"

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

190Express power of sale

  1. This section applies if a seller—

  2. expressly reserves a right of resale in case the buyer should default; and
    1. on the buyer defaulting, resells the goods.

      1. The original contract of sale is rescinded (but this does not limit any right to claim damages that the seller may have).

      Compare