Article 1525: Article 1527

ARTICLE 1525: ARTICLE 1527
 MEANING OF UNPAID SELLER  WHEN UNPAID SELLER’S POSSESSORY LIEN MAY

a. The one who has not been paid BE EXERCISED
b. Received a bill of exchange as conditional a. Sale without stipulation as to credit
payment but the condition has been broken by: b. Expiration of the term of credit
- dishonor of the instrument c. Insolvency of the buyer
- insolvency of the buyer
ARTICLE 1529
** Unpaid seller includes the following
a. An agent of the seller

 LIEN NOT LOST BY PART DELIVERY
- When part of goods are delivered, the
b. A consignor
unpaid seller has a lien upon the
c. Any other person in the position of the seller
remainder
 WHERE WHOLE OF THE PRICE HAS NOT BEEN PAID - But if the delivery of the part is
a. Tender of payment intended as a symbolical delivery of the
- Seller can bring action subsequent for whole, the lien is lost
the price if the price of the goods that
has been tendered is strictly unpaid ARTICLE 1529
b. Payment of part of price
- Payment of a part only does not destroy  WHEN UNPAID SELLER LOSES POSSESSORY LIEN
seller’s lien a. Delivery to agent or bailee of the buyer
- Seller’s remains an unpaid seller even if b. Possession by buyer or his agent
the title has been passed to the buyer c. Waiver of the lien
c. Payment by negotiable instrument
- The delivery of promissory notes  REVIVAL OF LIEN AFTER DELIVERY
payable to order or other mercantile a. Buyer refuse to receive the goods
documents shall produce the effect of b. Buyer returns the goods in wrongful
payment when: repudiation or rejection
 they have been cashed
 Or when through the fault of the ARTICLE 1530
creditor they have been impaired
 RIGHT OF SELLER TO STOP GOODS IN TRANSITU
ARTICLE 1526: - He may resume possession of the goods
while in transit when the buyer
 SPECIAL REMEDIES becomes insolvent
a. Right to retain  REQUISITES FOR THE EXERCISE OF RIGHT OF
b. Stop the goods in transit STOPPAGE IN TRANSITU
c. Resale a. Seller must be unpaid
d. Rescind b. Buyer must be insolvent
**If the unpaid seller still retains ownership, he c. Goods must be in transit
cannot have a lien but he has right to withhold d. Seller takes possession of the goods sold or give
delivery notice of his claim
e. Seller must surrender the negotiable document
 BASIS OF RIGHTS OF UNPAID SELLER f. Seller must bear the expenses of delivery of the
- Inherent justice of depriving him of goods after the exercise of the right
goods which he has not finally parted
where it is evident that he has not been  BASIS AND NATURE OF RIGHT OF STOPPAGE IN
or will not be paid when it is due. TRANSITU
- the injustice of allowing the buyer to  EFFECT OF OUTSTANDING BILL OF LADING
acquire the ownership of the goods - The carrier has no obligation to deliver
when he has not paid the goods to the seller unless such
ARTICLE 1531 document is surrendered for
cancellation
 WHEN GOODS ARE IN TRANSIT
ARTICLE 1533
a. After delivery to a carrier or other bailee and
before the buyer or his agent takes delivery of  UNPAID SELLER’S RIGHT OF RESALE
them a. Resale allowable
b. If the goods are rejected by the buyer and the - Goods are perishable in nature
carrier continues in possession of them - Right to resell is expressly reserved in
 WHEN GOODS CONSIDERED NO LONGER IN case buyer should make a default
TRANSIT - Buyer delays the payment for
a. After delivery to the buyer or his agent unreasonable time
b. Buyer or his agent obtains possession of the b. Effect of resale
goods at a point before the destination - In case of resale, the seller is not liable
originally fixed for any profit made by such resale; but
c. If the carrier acknowledges to hold the goods if he sells for less than the price, he has
on behalf of the buyer a right to sue for the balance.
d. If the carrier wrongfully refuses to deliver the - As against the original buyer, the new
goods to the buyer buyer acquires a good title to the goods
 EFFECT OF REFUSAL OF CARRIER TO ATTORN OR ARTICLE 1534
DELIVER THE GOODS.
- The carrier is not allowed to enlarge the  WHEN THE SELLER MAY RESCIND
seller’s right by wrongfully refusing to a. where the right to rescind is expressly reserved
deliver or attorn as the buyer’s agent. in case the buyer should make a default
- But a rightful refusal by the carrier, b. where the buyer delays in the payment of the
based for instance, on the refusal of the price for an unreasonable time.
buyer or his agent to pay the freight will  EFFECT OF RESCISSION.
not terminate the right to stop.
- In the case of rescission, the seller
resumes ownership in the goods. While
 DELIVERY TO A SHIP, ETC., CHARTERED OR OWNED the seller shall not be liable to the
BY BUYER buyer upon the contract of sale, the
a. Chartered by the buyer latter, however, may be made liable to
b. Owned by the buyer the seller for damages for any loss
occasioned by the breach of contract.
 EFFECT OF PARTIAL DELIVERY
- The mere fact that part of the goods
has been delivered does not deprive
the seller of the right to stop with
respect to the remainder
ARTICLE 1532
 WAYS OF EXERCISING THE RIGHT TO STOP

a. By taking actual possession of the goods
b. By giving notice of his claim to the carrier

Article 1525: Article 1527

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ARTICLE 1525: ARTICLE 1527

 MEANING OF UNPAID SELLER  WHEN UNPAID SELLER’S POSSESSORY LIEN MAY

a. An agent of the seller

 WAYS OF EXERCISING THE RIGHT TO STOP

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