Kanta sells tyres to Pankaj and tyres were despatched for delivery. Kanta came to know that Pankaj is…
Under sections 50 to 52 of the Sale of Goods Act, an unpaid seller who has parted with the goods may stop them in transit when the buyer becomes insolvent, by giving notice…
Choose your answer
Kanta sells tyres to Pankaj and tyres were despatched for delivery. Kanta came to know that Pankaj is declared insolvent by Hon'ble High Court, Kanta has not received payment, Kanta told the transporter not to give delivery. Under the Sale of Goods Act, 1930, which of the following is correct?
Answer and explanation
Correct answer B
Under sections 50 to 52 of the Sale of Goods Act, an unpaid seller who has parted with the goods may stop them in transit when the buyer becomes insolvent, by giving notice to the carrier who holds them. Kanta has not been paid, Pankaj has been declared insolvent and the tyres are still with the transporter, so "Kanta is justified to do the same"; she is not liable for compensation and commits no criminal breach of trust.
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