Lien and stoppage-in-transit are two important rights that a seller can exercise over the goods sold. Although both these rights are related to the possession of the goods, they are different in nature and application. The main differences between lien and stoppage-in-transit are as follows:
1. Definition: Lien is the right of the seller to retain possession of the goods until the buyer pays the purchase price. Stoppage-in-transit, on the other hand, is the right of the seller to stop the delivery of goods to the buyer while they are in transit, and to regain possession of the goods until the buyer pays the purchase price.
2. Occurrence: Lien occurs when the seller has already delivered the goods to the buyer but has not received the payment. Stoppage-in-transit occurs when the seller has already delivered the goods to a carrier or a third party for delivery to the buyer, but the goods have not yet reached the buyer.
3. Purpose: The purpose of lien is to secure the payment of the purchase price. The purpose of stoppage-in-transit is to prevent the delivery of goods to the buyer until the purchase price is paid.
4. Duration: Lien continues as long as the seller has possession of the goods. Stoppage-in-transit can be exercised only if the goods are in transit, and the right is lost once the goods are delivered to the buyer.
5. Effect: Lien affects the buyer's possession of the goods, as the seller retains possession until the payment is made. Stoppage-in-transit affects the seller's possession of the goods, as the seller regains possession until the payment is made.
In conclusion, both lien and stoppage-in-transit are important rights that a seller can exercise over the goods sold. Lien is the right of the seller to retain possession of the goods until the payment is made, while stoppage-in-transit is the right of the seller to stop the delivery of goods to the buyer while they are in transit. The main difference between these two rights is their occurrence, purpose, duration, and effect on possession.
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