How is Stoppage in Transit Effected?

An unpaid seller may exercise his right of stoppage in transit either:

(i) By taking actual possession of the goods, or

(ii) By giving notice of his claim to the carrier or other bailee in whose possession the goods are (Sec. 52).

Such notice may be given to the principal. It should be given at such time and in such circumstances that the principal, by the exercise of reasonable diligence, may communicate it to his servant or agent in time to prevent a delivery to the buyer.

However, expenses of re-delivery of the goods to the seller shall be borne by the seller.

Liability of Carrier for Wrongful Refusal to Deliver the Goods:

The carrier is liable to the seller in case he wrongfully refuses to deliver the goods to the seller after the seller has given notice to stop the goods in transit and the goods continue to be in transit. The carrier is liable to the buyer if he (carrier) refuses to deliver the goods to the buyer when the transit has ended.