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New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Other commercial matters - Carriage of goods - Rights of carriers

288: Sale of goods by public auction

You could also call this:

“What happens when a carrier sells your stuff if you don't pay them”

If you have goods that a carrier is transporting for you, and you don’t pay the carrier within 2 months after they tell you that you owe them money, the carrier can sell your goods at a public auction. This is only if you haven’t paid all the money you owe them for moving your goods and any other costs they’ve had.

When the carrier sells your goods, they can take money from the sale to cover what you owe them for moving the goods. They can also take money to pay for any costs they had for keeping your goods safe, storing them, and selling them.

If there’s any money left over after the carrier takes what you owe them, they have to give that extra money to you.

But if the sale doesn’t make enough money to cover everything you owe the carrier, you still have to pay them the difference. This means you might still owe the carrier money even after they sell your goods.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844617.

Topics:
Business > Industry rules Money and consumer rights > Consumer protection
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"Carrier can keep goods safe while waiting for a claim to be settled"

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"Rules for storing and selling goods when people don't collect them"

Part 5 Other commercial matters
Carriage of goods: Rights of carriers

288Sale of goods by public auction

  1. The carrier may sell the goods by public auction if, within 2 months after the date on which the carrier gives notice under section 286, payment in full of all freight owing and recoverable expenses so far incurred has not been tendered to the carrier.

  2. From the proceeds of sale of the goods by public auction, the carrier may deduct—

  3. the amount of freight owing to the carrier in respect of the carriage of the goods; and
    1. all expenses reasonably incurred by the carrier in removing, preserving, and storing the goods pending settlement of the carrier’s claim, and in arranging and conducting the sale of the goods.

      1. The carrier must pay the balance of the proceeds (if any) to the owner of the goods.

      2. If the amount of the proceeds is less than the amount of freight owing to the carrier and all recoverable expenses, the deficiency is a debt due to the carrier by the owner of the goods.

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