An unpaid seller has a limited right of re-sale. When the unpaid seller has exercised his right of lien or stoppage in transit, he can resell the goods coming into his possession.

An unpaid seller has a right to resell the goods in the following cases:

(i) When the goods are of perishable nature.

(ii) In any other case, when he gives notice to the buyer showing his intention to re-sell the goods and the buyer does not, within a reasonable time, pay or tender the price.

ADVERTISEMENTS:

(iii) When the seller expressly reserves a right of re-sale in case the buyer makes a default.