What is the right of stoppage in transitu? | 1 December 2024

Stoppage in transitu is the act which the unpaid seller of goods stops their progress and constructively resumes possession of the goods while they are in the course of transit from him to the buyer and not yet actually delivered to the latter.The right of stoppage in transitu is exercised by the seller by stopping the delivery of the goods in case of insolvency of the buyer or consignee, when such goods are already in transit.

Author

Alburo Law
December 01, 2024

When the buyer of the goods is or becomes insolvent, the unpaid seller who has parted with the possession of the goods has the right of stopping them in transitu, that is to say, he may resume possession of the goods at any time while they are in transit, and he will then become entitled to the same rights in regard to the goods as he would have had if he had never parted with the possession. (Article 1530, Civil Code)

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