Right of resale

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Updated: Aug 20, 2021

In certain circumstances a seller of goods may resell, for instance after stoppage in transit or because of a lien. Neither stoppage nor lien rescinds the contract, but the seller can, if the goods are likely to perish, resell the goods and give a good title. He may also resell if the buyer does not pay within a reasonable time after the seller has announced his intention to resell. If the title has passed to the buyer the surplus on resale belongs to him, after the seller has reclaimed any expenses. The above does not apply where in the contract the seller reserves the right of resale; then the contract is rescinded.

Reference: The Penguin Business Dictionary , 3rd edt.



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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.