The main point of distinction between right of lien and right of stoppage in transit are as follows:
(1) Right of stoppage in transit arises when the buyer is insolvent and is unable to pay. But the right of lien can be exercised even when the buyer is able to pay but does not pay.
(2) The right of stoppage in transit comes into operation only after the seller has parted with the possession of the goods but the seller’s lien comes into existence and continues so long as the seller has got possession of the goods.
(3) The right of stoppage in transit commences when the goods have left the possession of the seller and continues until the buyer has acquired possession thereof. But the right of lien comes to an end as soon as the goods go out of the possession of the seller.
(4) The right of lien is right to retain possession of the goods. The right of stoppage on the other hand is the right to regain possession of the goods.
(5) Possession is the test of a right of lien. The test for stoppage in transit is the non-delivery of the goods to the buyer.