Posted in Marketing and Strategy Terms, Total Reads: 348
Definition: Seller’s Lien
Seller’s Lien can be defined as the legal right of a seller to retain the possession and title of goods that are sold until the full price of the goods is paid. Seller’s lien allows a seller to take a property or goods back from the customers who have not paid for the same.
Sometimes under the terms of seller’s lien sellers who haven’t received the payment for goods and services in full that have been promised to them by their customers retain an interest in the property given earlier. Sometimes when seller doesn’t receive payment they can withhold shipment or even repossess those goods or can have some reasonable expectation if it is expected by the seller that payment will never occur. Seller’s lien is an important thing for a business and many legal and financial experts have invested considerable amounts of time and energy to this subject of payment to seller.
It’s crucial for those businessmen who deal with large scale consumer transactions and business to business transactions that they understand the finer points and laws of this area. Under certain circumstances the vendors may be able to invoke seller’s lien after they make a delivery to a buyer who is supposedly solvent. If in a certain case a vendor determines that his buyer may become insolvent or has suffered a credit lapse recently, the vendor may intervene to stop the delivery in between and bring it back to restock the goods or property. Once it is done the seller can withhold goods or property until the buyer pays in full for the same. Although seller’s lien law is invoked hundreds of times each year, many sellers are dimly aware of the scope of power of the laws behind seller’s lien and thus a low usage of this occurs so that they are protected against misunderstandings and potential financial losses.