A seller sends the bill of exchange and bill of lading or railway receipt together to the buyer to…
Under s.25(3) the buyer "is bound to return the bill of lading or the railway receipt if he does not honour the bill of exchange", and if he wrongfully keeps them the…
Choose your answer
A seller sends the bill of exchange and bill of lading or railway receipt together to the buyer to secure acceptance or payment of the bill. If the buyer dishonours the bill, what document-return duty does section 25(3) of the Sale of Goods Act, 1930 impose?
Answer and explanation
Correct answer C
Under s.25(3) the buyer "is bound to return the bill of lading or the railway receipt if he does not honour the bill of exchange", and if he wrongfully keeps them the property does not pass to him. He cannot keep the documents, sell the goods or offer damages instead.
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