Hong Kong Ordinances

SALE OF GOODS ORDINANCE - SECT 49

Effect of sub-sale or pledge by buyer

Re-sale by buyer or seller

Subject to the provisions of this Ordinance, the unpaid seller's right of lien
or retention or stoppage in transitu is not affected by any sale or other
disposition of the goods which the buyer may have made, unless the seller has
assented thereto: Provided that where a document of title to goods has been
lawfully transferred to any person as buyer or owner of the goods, and that
person transfers the document to a person who takes the document in good faith
and for valuable consideration, then, if such last-mentioned transfer was by
way of sale, the unpaid seller's right of lien or retention or stoppage in
transitu is defeated, and if such last mentioned transfer was by way of pledge
or other disposition for value, the unpaid seller's right of lien or retention
or stoppage in transitu can only be exercised subject to the rights of the
transferee.