Short answer. No. Once the carrier acknowledges to the buyer that it holds the goods on the buyer's behalf, transit has ended under the Civil Code. The goods are no longer in transit from that point — and the right to stop in transit only exists while goods are still in transit. The seller's right of stoppage has been lost.

What the law says

If, after the arrival of the goods at the appointed destination, the carrier or other bailee acknowledges to the buyer or his agent that he holds the goods on his behalf and continues in possession of them as bailee for the buyer or his agent; and it is immaterial that further destination for the goods may have been indicated by the buyer

Civil Code, Article 1531 — When Goods Are 'In Transit'. Read the full provision →

When goods are "in transit" under the law

The right to stop goods in transit — exercised by an unpaid seller against a defaulting buyer — depends on one critical condition: the goods must still be in transit. Article 1531 defines transit as the period from when goods are handed to a carrier for delivery to the buyer, until the buyer or his agent takes delivery. During that window, the seller may intercept and recover the goods. But once transit ends, the window closes — and the law specifies several ways transit can end short of physical delivery to the buyer.

Carrier acknowledgment ends transit

One of the clearest endpoints is the carrier's acknowledgment. Article 1531 provides that transit ends if, after the goods arrive at the destination, the carrier acknowledges to the buyer that it holds the goods on the buyer's behalf and continues in possession as bailee for the buyer. This is an attorn — a legal term for when a holder of property formally acknowledges holding it for a new party. Once the carrier makes this acknowledgment, it is no longer holding for the seller's account; it is holding for the buyer's. The seller's right to intercept those goods disappears at that moment.

The further destination clause

The statute adds a noteworthy detail: it is immaterial that the buyer may have indicated a further destination for the goods after the carrier acknowledged holding them. In other words, even if the goods are still technically moving — being rerouted or reshipped to another location at the buyer's direction — transit for the seller's purposes has already ended when the carrier made the acknowledgment. The seller cannot argue that the goods are "still in transit" because they haven't reached a final resting place; the transit that matters for stoppage purposes ended with the acknowledgment.

What the unpaid seller can still do

Losing the right of stoppage in transit does not mean the seller has no remedy at all. The seller may still have a lien on the goods if they remain in his possession under other circumstances, or may pursue the buyer for the unpaid price as a debt. If the goods have been wrongfully taken or diverted, other remedies may also apply. The key is that stoppage in transit is one of several tools available to an unpaid seller — its loss in this scenario does not foreclose all options, but it does require shifting to a different legal basis for recovery.

Related provisions

Note. Statute text quoted on this page is reproduced from the official enactment and is linked to the full provision. The explanation around it is general legal information from Vivas & Nobles Law Office, not legal advice. Whether it applies to your situation depends on facts only a lawyer reviewing them can assess.