What is the difference between Lien and Stoppage in Transit?

Both are similar in as much as the latter is an extension of the firm right, i.e., right of lien. Again, they are exercised when the buyer does not pay the price and the property, i.e., ownership in the goods has passed from the seller to the buyer. Inspite of similarity, there are certain points of distinction between the two which are as follows:

Lien

1. A lien is a right to retain possession.

2. In case of a lien, the goods must be in seller’s possession.

3. The right of lien can be exercised when the buyer does not pay.

4. The right of lien comes to an end when the possession of goods is lost.

Stoppage in Transit

1. Stoppage in transit is a right to regain possession. Where the first right is over, the second starts to take the original position.

2. In case of stoppage in transit, the goods must be in the possession of a carrier or any other bailee, i.e., a middle-man.

3. The right of stoppage can be exercised when the buyer has become insolvent.

4. The right of stoppage comes to an end when the buyer or his agent takes possession of goods.