When the unpaid seller delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer, without reserving the right of disposal of the goods, then an unpaid seller of goods loses his lien.

When an unpaid seller delivers goods to a carrier or bailee for transmission to the buyer without reserving the right of disposal, they lose their lien on the goods. The lien is a right to retain possession until payment is received, but this right is lost when the seller relinquishes control by handing goods to a third-party carrier without reserving disposal rights. This is a correct statement of commercial law under the Sale of Goods Act.