Text of the provision
Art. 1532. The unpaid seller may exercise his right of stoppage in transitu either by obtaining actual possession of the goods or by giving notice of his claim to the carrier or other bailee in whose possession the goods are. Such notice may be given either to the person in actual possession of the goods or to his principal. In the latter case the notice, to be effectual, must be given at such time and under such circumstances that the principal, by the exercise of reasonable diligence, may prevent a delivery to the buyer. When notice of stoppage in transitu is given by the seller to the carrier, or other bailee in possession of the goods, he must redeliver the goods to, or according to the directions of, the seller. The expenses of such delivery must be borne by the seller. If, however, a negotiable document of title representing the goods has been issued by the carrier or other bailee, he shall not be obliged to deliver or justified in delivering the goods to the seller unless such document is first surrendered for cancellation.
(n)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full. The three sources consulted do not read identically here; the text above is the reading carried by two of the three, including the Official Gazette.
What this article means
An unpaid seller who is entitled to stop goods still on their way to the buyer may do it in either of two ways: by physically retaking the goods, or by giving notice of his claim to the carrier or other bailee holding them. The notice may go to the person actually in possession or to that person's principal — but if it goes to the principal, it only counts when it is given early enough, and in such circumstances, that the principal could still prevent delivery to the buyer by exercising reasonable diligence. Once properly notified, the carrier must return the goods to the seller or deliver them as the seller directs, and the seller bears the cost of that redelivery. One important limit: if the carrier has already issued a negotiable document of title over the goods, it is neither obliged nor justified in handing them back until that document is first surrendered for cancellation — the document protects whoever now holds it.
Related provisions
- Article 1531 — When Goods Are 'In Transit'.
- Article 1533 — Unpaid Seller's Right of Resale.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.