chapter  24
44 Pages

POSSESSION AND REPOSSESSION BY THE SUPPLIER

Notwithstanding that stipulations as to the time of payment are only warranties,6 Part V of the SGA allows an unpaid seller who has not granted credit to retain possession of the goods until payment.7 This fits in neatly with his duty under s 28 to deliver when the buyer is ready and willing to pay the price (see para 23.21). Alternatively, where the seller has taken a cheque or negotiable instrument for the price,8 his rights under Part V are suspended; but they revive if the cheque is not met, for s 38(1)(b) then deems him to be an ‘unpaid seller’ again.9 It is for consideration whether s 38(1)(b) can apply where the consumer buyer ‘pays’ by giving the seller a modern cheque: as we have already seen (see para 7.28), it seems unlikely that one of these instruments can amount to a ‘bill of exchange or other negotiable instrument’.