Sale of Goods Act 1979 · 2020 Revised Edition · Part 5 · Rights of Unpaid Seller Against the Goods
47. Effect of sub-sale, etc., by buyer
Feedback & supportSubject to this Act, the unpaid seller’s right of lien or retention or stoppage in transit is not affected by any sale or other disposition of the goods which the buyer may have made, unless the seller has assented to it.
Where a document of title to goods has been lawfully transferred to any person as buyer or owner of the goods, and that person transfers the document to a person who takes it in good faith and for valuable consideration, then —
document of title to goods
“document of title to goods” has the same meaning as in the Factors Act 1889;
if the last-mentioned transfer was by way of sale, the unpaid seller’s right of lien or retention or stoppage in transit is defeated; and
if the last-mentioned transfer was made by way of pledge or other disposition for value, the unpaid seller’s right of lien or retention or stoppage in transit can only be exercised subject to the rights of the transferee.