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Contract and Commercial Law Act 2017

Sale of goods - Rights of unpaid seller against goods - Unpaid seller’s lien

175: Unpaid seller's lien

You could also call this:

“Seller can keep goods until paid”

If you’re selling goods and haven’t been paid yet, you can keep the goods until you get your money. This is called an unpaid seller’s lien. You can do this in three situations:

  1. If you sold the goods without agreeing to give the buyer time to pay later.
  2. If you gave the buyer time to pay, but that time has run out.
  3. If the buyer can’t pay their debts anymore.

You can keep the goods even if you’re holding them for the buyer as their agent or caretaker. However, there are other rules about this that you need to follow.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844385.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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174: Unpaid seller's rights, or

"What you can do if someone doesn't pay you for goods you sold them"

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176: Part delivery, or

"Keeping some goods until you get paid for all of them"

Part 3 Sale of goods
Rights of unpaid seller against goods: Unpaid seller’s lien

175Unpaid seller's lien

  1. An unpaid seller of goods who is in possession of them may retain possession of them until payment or tender of the price if—

  2. the goods have been sold without any stipulation as to credit:
    1. the goods have been sold on credit, but the term of credit has expired:
      1. the buyer becomes insolvent.

        1. Subsection (1) is subject to the rest of this Part.

        2. The seller may exercise the seller’s right of lien even if the seller is in possession of the goods as agent or bailee for the buyer.

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