An unpaid seller has handed goods to a carrier and they remain in transit to the buyer. Which event, by…
Section 50 of the Sale of Goods Act, 1930 allows the unpaid seller to resume possession while the goods are in transit if the seller has already parted with possession and…
Choose your answer
An unpaid seller has handed goods to a carrier and they remain in transit to the buyer. Which event, by itself, meets the buyer condition for stoppage in transit under the Sale of Goods Act, 1930?
Answer and explanation
Correct answer A
Section 50 of the Sale of Goods Act, 1930 allows the unpaid seller to resume possession while the goods are in transit if the seller has already parted with possession and the buyer becomes insolvent. The seller may retain the goods until payment or tender of the price.
Option feedback
Option A
Section 50 makes the buyer’s insolvency the trigger for stoppage.
Option B
Refusal to pay does not by itself show that the buyer has become insolvent.
Option C
Fraud alone does not satisfy the insolvency condition in section 50.
Option D
A quality dispute alone does not establish insolvency.
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