stoppage in transitu
- It refers to a seller's right to halt goods while they are in transit to the buyer and take them back, usually upon discovering that the buyer is not able to pay
- Due to the buyer's impending bankruptcy, the seller exercised their right of stoppage in transitu to retain the goods.
- Stoppage in transitu protects sellers in the event of a buyer's insolvency, allowing them to reclaim the goods in transit.
- The power of stoppage in transitu became necessary when the seller found out the buyer had declared bankruptcy before the goods were delivered.
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