Madhu, an unpaid seller, can exercise the right of lien provided under the Sale of Goods Act, 1930,…
Under Section 47 of the Sale of Goods Act, 1930 the unpaid seller's lien is a right to retain possession of the goods until payment, and it exists only while the seller is…
Choose your answer
Madhu, an unpaid seller, can exercise the right of lien provided under the Sale of Goods Act, 1930, under which of the following circumstances?
(A). Before the contract of sale has been concluded
(B). When the goods are in the possession of Madhu
(C). After the agent of the buyer has collected the goods but before the buyer has received the same
(D). After the goods have been delivered to the carrier but the goods have not reached the buyer
Answer and explanation
Correct answer D
Under Section 47 of the Sale of Goods Act, 1930 the unpaid seller's lien is a right to retain possession of the goods until payment, and it exists only while the seller is in possession of the goods; under Section 49 the lien is lost when the goods are delivered to a carrier for transmission to the buyer without reserving the right of disposal, or when the buyer or his agent lawfully obtains possession. There can be no lien before the contract is concluded, so the answer is "(B) only.".
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