Page:United States Statutes at Large Volume 50 Part 1.djvu/69

 44 Effect of sale of goods subject to lien or stoppage in transitu. Part V. PA RT V Action for bre ach of the contract ; remedies of the seller. Action for the price. Action for damages for nonacceptance of the goods. 75TH CONGRESS, 1ST SESSION-CH. 43-MARCH 17, 1937 SEC. 62. EFFECT OF SALE OF GOODS SUBJECT TO LIEN OR ST OPPAG E IN TRANsITu .-Subject to the provisions of this Act, the unpaid seller's right of lien or stoppage in transitu is not affected by any sale, or other dispos ition of the goods which the bu yer ma y have made, unles s the seller has assented thereto. If, however , a negot iable doc ument of title ha s been is sued for goods, no seller's lien or right of stoppage in transitu shall defeat the right of any purchaser for value in good faith to whom such document has been n egotia ted, w hether such negoti ations be pri or or subseq uent t o the notification to the carrier, or other bailee who issued such docu- ment, of the seller's claim to a lien or right of stoppage in transitu. ACTION FOR BREACH OF THE CONTRACT ; REMEDIES OF THE SELLER SEC. 63. ACTION FOR THE PRICE .-(1) Where, under a contract to sell or a sale, the property in the goods has passed to the buyer, and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract or the sale, the seller may maintain an action against him for the price of the goods. (2) Where, under a contract to sell or a sale, the price is payable on a day ce rtain, ir respectiv e of deli very or of transf er of tit le, and t he buyer wrongfully neglects or refuses to pay such price, the seller may mainta in an action for t he pri ce, al though the pr operty in th e good s has not passed, and the goods have not been appropriated to the con- tract. But it shall be a defense to such an action that the seller at any time before judgment in such action has manifested an inability to perform the contract or the sale on his part or an intention not to perform it. (3) Although the property in the goods has not passed, if they cannot readily be resold for a reasonable price, and if the provisions of section 64 (4) are not applicable, the seller may offer to deliver the goods to the buyer, and, if the buyer refuses to receive them, may notify the buyer that the goods are thereafter held by the seller as bailee for the buyer. Thereafter the seller may treat the goods as the buyer's and may maintain an action for the price. SEC. 64 . ACTION FOR DAMAGES FOR NONACCEPTANCE OF THE GOODS .- (1 ) Where the bu yer wr ongful ly neg lects or refu ses to accep t and pay fo r the goods, the seller may maintain an action against him for damages for nonacceptance. (2) The measure of damages is the estimated loss directly and naturally resulting, in the ordinary course of events, from the buyer's breach of contract. (3) Where there is an available market for the goods in question, the measure of damages is, in the absence of special circumstances, showing proximate damage of a greater amount, the difference between the contract price and the market or current price at the time or times when the goods ought to have been accepted, or, if no time was fixed for acceptance, then at the time of the refusal to accept. (4) If, while labor or expense of material amount are necessary on the p art of th e seller to enable him to fulfill h is obliga tions und er the contract to sell or the sale, the buyer repudiates the contract or the sale, or notifies the seller to proceed no further therewith, the buyer shall be liable to the seller for no greater damages than the seller would have suffered if he did nothing toward carrying out, the contract or the sale after receiving notice of the buyer's repudia- tion or countermand. The profit the seller would have made if the contract or the sale had been fully performed shall be considered in estimating such damages.