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How stoppage in transitu is effected.
Effect of sub-
No. 4.] THE ORDINANCES OF HONGKONG: [A.D. 18:
whether they are in the possession of the master as a carrier or as act to the buyer.
(6.) Where the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that behalf, the transit is deemed to be at an end.
(7.) Where part delivery of the goods has been made to the buyer or his agent in that behalf, the remainder of the goods may be stopped in transitu, unless such part delivery has been made under such circumstances as to show an agreement to give up possession of the whole of the goods.
47.—(1.) The unpaid seller may exercise his right of stoppage in transitu either by taking actual possession of the goods or by giving notice of his claim to the carrier or other bailee in whose possession the goods are. Such notice may be given either to the person in actual possession of the goods or to his principal. In the latter case the notice to be effectual, must be given at such time and under such circumstances that the principal, by the exercise of reasonable diligence, may communicate it to his servant or agent in time to prevent a delivery to the buyer.
(2.) When notice of stoppage in transitu is given by the seller to the carrier or other bailee in possession of the goods, he must deliver the goods to, or according to the directions of, the seller. The expenses of such re-delivery must be borne by the seller.
Re-sale by Buyer or Seller.
48. Subject to the provisions of this Ordinance, the unpaid seller's right of lien or retention or stoppage in transitu is not affected by any sale or pledge by buyer.
Sale not generally rescinded by lien or stoppage.
sale or other disposition of the goods which the buyer may have made, unless the seller has assented thereto; Provided that where a document of title to goods has been lawfully transferred to any person as buyer or owner of the goods, and that person transfers the document to a person who takes the document in good faith and for valuable consideration, then, if such last-mentioned transfer was by way of sale, the unpaid seller's right of lien or retention or stoppage in transitu is defeated, and if such last-mentioned transfer was by way of pledge or other disposition for value, the unpaid seller's right of lien or retention or stoppage in transitu can only be exercised subject to the rights of the transferee.
49. (1.) Subject to the provisions of this section, a contract of sale is not rescinded by the mere exercise by an unpaid seller of his right of lien or retention or stoppage in transitu.
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