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STOPPAGE IN TRANSITU Definition & Legal Meaning

Definition & Citations:

The act by which the unpaid vendor of goods stops their progress and resumes possession of them, while they are in course of transit from him to the purchaser, and not yet actually delivered to the latter. The right of stoppage in transitu is that which the vendor has, when lie sells goods on credit to another, of resuming the possession of the goods while they are iu the possession of a carrier or middle-man, in the transit to the consignee or vendee, and before they arrive into his actual possession, or the destination he has appointed for them on his becoming bankrupt and insolvent. 2 Kent, Comm. 702. Stoppage in transitu is the right which arises to an unpaid vendor to resume tlie possession, with which he has parted, of goods sold upon credit, before they come into the possession of a buyer who has become insolvent, bankrupt, or pecuniarily embarrassed. Inslee v. Lane, 57 X. II. 454.


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