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Stoppage in Transitu


STOPPAGE IN TRANSITU This is explained to be the right which the shipper of goods, who has sold them on credit, has to retake them while in the hands of a carrier being trans ported to a buyer who has become insolvent. The ship per may give notice, as by telegraph, to the carrier, and this is sufficient to bind him not to deliver. But the carrier must determine at his peril that the consignee is actually- insolvent; mere financial embarrassment of the consignee is not sufficient to authorize the carrier to withhold the goods on notice of the shipper. (Hutch., Carriers, Sec. 421.) The right of stoppage in transitu continues as long as the goods are in the possession of a middleman, act ing as agent for the shipper, whether he is carrier, ware houseman, or other bailee. The right may be defeated by a transfer of the bill of lading by the consignee to a purchaser in good faith, who has no notice of the in solvency and the shipper's intention to reclaim the property. (51 Cal. 345.)