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Stoppage in Transit

transitu and seller

STOPPAGE IN TRANSIT U is the seizure by the seller of goods sold on credit during the course of their passage (transitus) to the buyer. This principle is said to have been established about 1690 in the Court of Chancery (2 Vern., 203); and it has since been acknow ledged in the courts of common law. The transitus is defined to be the passage of the goods to the place agreed upon by the buyer and seller or the place at which they are to come into the possession of the buyer. This definition does not mean that the term transitus implies continual I motion: goods are in transitu while they are at rest, if they are still on the road to the place to which they have been sent. This doctrine of stoppage in transitu en titles a seller, in case of the insolvency or bankruptcy of the buyer, to stop the goods before they come into the buyer's posses sion. The right of stoppage in transitu is not confined to cases of buying and selling. A factor either at home or

abroad, if he to his prin cipal by the order of the principal and has list the goods in his own name or on his own credit, has the same right of stoppage in transitu as if he were the seller of the goods. Questions of stop page in transitu sometimes involve diffi cult points of law. The right of stoppage implies that the goods are in the posses sion of the seller or factor when he exer cises this right. Accordingly the law of Stoppage involves the law of Possession of moveable things. The following references will supply all the necessary information on this subject. (Abbot, Os Shipping; Cross, Os Lien and Stoppage in Transitu ; Smith's Leading Cases, note to Lickbarrow v. Mason ; Russell's Treatise on the Laws Relating to Fac tors and Brokers.)