1216 72d C ONGRESS . SESS . II. CH. 128. F EBRUARY 27, 1933 . Stoppage in transitu . SEC . 65 3. SET .T .FR MAY STOP GOODS ON BUYER'S INSOLVENCY .-Subject to the provisions of this chapter, when the buyer of goods is or becomes insolvent the unpaid seller who has parted with the posses- sion of the goods has the right of stopping th em in transitu, that is to say, he may resume possession of the goods at any time while they are in transit, and he will then become entitled to the same rights in regard to the goods as he would have had if he had never parted with the possession . Goods in transit .
SEC . 654. WHE N GOO DS ARE IN TRANSIT.-1 . Goods are in transit within the meaning of section 653 : (a) From the time when they are delivered to a carrier by land or water, or other bailee for the purpose of transmission to the buyer, until the buyer, or his agent in that behalf, takes delivery of them from such carrier or other bailee ; (b) If the go ods are rejected by the buyer, and the carrier or other bailee continues in possession of them, even if the seller has refused to receive them back . 2. Goo ds are no longer in transit wit hin the me aning of section 653 : (a) If t he buyer , or his agent i n that be half, ob tains de livery of the goods bef ore their arriva l at the appointe d destination ; (b) 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 a furt her d estin ation for the goods may have been indicated by the buyer ; (c) If the carrier or other bailee wrongfully refuses to deliver the goods to the bu yer or his agent in that behalf . 8 . If the goods are delivered to a ship chartered by the buyer, it is a question depending on the circumstances of the particular case whether they are in the possession of the master as a carrier or as agent of the buyer . 4. If part delivery of the goods has been made to the buyer, or his agent in that behalf, the remainder of the goods may be stopped in transitu, unless such part delivery has been made under such circum- stances as to show an agreement with the buyer to give up possession of the whole of the goods . Manners of stop- SEC . 655 . WAYS OF EXERCISING THE RIGHT TO STOP.-1 . The unpai d page . 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. Suc h notice may be given either to the person in ac tual 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 . 2. 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 . Right of resa le . ,SEC. 656 . WHEN AND HOW RESALE MAY BE MADE.-1 . Where the goods are of a perishable nature, or where the seller expressly re- serves the right of resale in case the buyer should make default, or where the buyer has been in default in the payment of the price
