A sold the goods on credit to B and delivered the goods to the buyer's shipping agent who had put them…
Valpy v Gibson held that possession had already vested in the buyer before goods were returned solely for repacking. That limited-purpose redelivery did not revive the…
Choose your answer
A sold the goods on credit to B and delivered the goods to the buyer's shipping agent who had put them on board a ship. However, the goods were returned to the seller for repacking. When the goods were still with the seller, the buyer became insolvent. The seller being unpaid refuses to return the goods. Examine the following options and decide the correct one.
Answer and explanation
Correct answer C
Valpy v Gibson held that possession had already vested in the buyer before goods were returned solely for repacking. That limited-purpose redelivery did not revive the seller's lost unpaid-vendor lien. Insolvency alone did not confer a fresh lien. The Indian statutory rule similarly terminates the lien when the buyer or his agent lawfully obtains possession. A resale cannot be justified merely by the seller's possession for repacking.
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