A buyer becomes insolvent after an unpaid seller parts with possession of the goods, which are still in…
The right can apply to carriage by land, sea or air. Sections 50 and 51 turn on insolvency, the unpaid seller having parted with possession, and continuing transit. The…
Choose your answer
A buyer becomes insolvent after an unpaid seller parts with possession of the goods, which are still in transit. Which statement about the seller’s right of stoppage is correct under the Sale of Goods Act, 1930?
Answer and explanation
Correct answer D
The right can apply to carriage by land, sea or air. Sections 50 and 51 turn on insolvency, the unpaid seller having parted with possession, and continuing transit. The seller may resume possession during transit and retain the goods until payment or tender of the price.
Option feedback
Option A
Section 50 does not limit the right to land carriage.
Option B
Sea carriage can qualify, but section 50 does not make it exclusive.
Option C
Air carriage can qualify, but section 50 does not make it exclusive.
Option D
The right can apply to carriage by land, sea or air. Sections 50 and 51 turn on insolvency, the unpaid seller having parted with possession, and continuing transit.
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