Stoppage In Transitu

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Meaning of Stoppage In Transitu

In relation to the sale of goods , the term means the act by which the unpaid vendor of goods stops goods in transit before delivery to the purchaser where the purchaser has become insolvent. The right to stop goods is lost if the goods have been delivered to the purchaser.

Stoppage In Transitu Alternative Definition

A resumption by the seller of the possession of goods not paid for, while on their way to the vendee, and before he has acquired actual possession, of them. 15 Me. 314. For most purposes, the possession of the carrier is considered to be that of the buyer; but by virtue of this right, which is an extension of the right of lien, the vendor may reclaim the possession before they reach the vendee, in case of the insolvency of the latter. 12 Pick. (Mass.) 313; 4 Gray (Mass.) 336; 2 Caines (N. Y.) 98; 8 Mees. & W. 341. To give a right of stoppage in transitu, the sale must have been on credit, but the giving of a note is not payment unless so agreed (13 Me. 103), the buyer must be insolvent, and such insolvency must have been unknown at the time of the sale (102 N. C. 390; 27 Barb. [N. Y.] 663), and the goods must be in transit, i. e., they must not have come into the actual or constructive possession of the buyer (16 Neb. 614; 40 Iowa, 627).

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This definition of Stoppage In Transitu is based on the The Cyclopedic Law Dictionary . This entry needs to be proofread.

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  • Article Name: Stoppage In Transitu
  • Author: Encyclopedic
  • Description: In relation to the sale of goods , the term means the act by which the unpaid vendor of goods stops goods in [...]

This entry was last modified: April 22, 2013

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