Shipping Stoppage The Right To Study

A vendor who has shipped goods, and parted with the bill of lading has still a right, if he remains unpaid, to regain possession of the goods while they are in transit, in the event of the buyer becoming insolvent. This is called the right of stoppage in transit by sea.Stoppage in transit by sea, (for short, this thesis calls it " stoppage in transit" below) was firstly provided in the laws of the countries of the Common Law System. With the continuous development, a comparatively integrated "system of stoppage in transit" has been established in these countries The law concerning stoppage in transit in England is Sales of Goods Act 1979, which gives relevant provisions on stoppage in transit in Chapter V. Under English law, it is not only the seller who is unpaid but also any person who is in the position of a unpaid seller could exercise the right of stoppage in transit. In case that the buyer is insolvent, the subject of stoppage in transit may exercise his right of stoppage in transit by taking actual possession of the goods or by giving notice of his claim to the carrier or other bailee or custodier in whose possession the goods are, but the subject can only exercise his right when the goods is in transit. When the goods is in transit and no documents of title to the goods have been issued, the buyer's disposition of the goods without the permission of the seller will not affect the right of stoppage in transit that the seller has to the goods, and the seller may still exercise his right of stoppage in transit to the goods. Under the condition that the document of title to the goods is issued, the buyer's acquisition of the document of title will not affect the seller's right of stoppage in transit. But if the buyer transfers the document of title to a third party and the transfer is for value and in good faith, the seller will forfeit his right to exercise stoppage in transit and may not exercise his right. If the carrier detains the goods because of the non-payment of the freight, the seller should firstly pay the freight to the carrier so that the basis for the carrier to exercise his right of lien on the goods will not be established, and then exercise his right of stoppage in transit.The express law in American concerning the provisions of stoppage in transit is Uniform Commercial Code. The Code endows the seller with the right of stoppage in transit to the goods. When the buyer is insolvent or there is other events constituting a breach of contract, the seller may exercise his right of stoppage in transit to the goods in accordance with the Code. But as between the consignor or consignee and a common carrier in interstate or foreign commerce the provisions of the Code are subject to the treaties and statutes of the United States and tariffs, Classifications and regulations filed pursuant thereto. The right to stop goods in transit on a bill of lading has been held to follow from the Federal Bills of Lading Act which stipulates the rights and obligations of the carrier during the period when the subject of right of stoppage in transit exercise his right of stoppage in transit.. Only when the federal laws and the international conventions have no provisions in the contrary, the Codewill apply.England and the United States of America have different provisions on stoppage in transit. Generally speaking, the validity of stoppage in transit under English law is much stronger than that under the law of the United Slates of America. And the events leading to the invalidation of stoppage in transit under English law are less and comparatively more strict than those under the law of the United States of America. But under the law of the United Slates of America, it is easier for the seller to exercise his right of stoppage in transit, not like English law under which the seller may exercise stoppage in transit only with the events such as that the buyer is insolvent, and the buyer constitutes a breach of contract, etc..The United Nations Convention on the Contracts for the International Sale o...