S still has possession of goods sold to B, and the price has not been paid in full. Under section 47 of the Sale of Goods Act, 1930, in which case can S NOT exercise a lien on the goods?
Question and options
S still has possession of goods sold to B, and the price has not been paid in full. Under section 47 of the Sale of Goods Act, 1930, in which case can S NOT exercise a lien on the goods?
The sale was on 30 days' credit, 10 days have passed and B is insolvent
The sale was for cash, B has paid half the price and B is solvent
The sale was on 30 days' credit, 10 days have passed and B is solvent
The sale was on 30 days' credit, 40 days have passed and B is solvent
Answer and explanation
Section 47 of the Sale of Goods Act, 1930 gives an unpaid seller in possession a lien where the goods were sold without credit, where they were sold on credit and the term has expired, or where the buyer becomes insolvent. A solvent buyer whose credit term is still running meets none of these grounds. A seller paid only part of the price is still an unpaid seller under section 45, so the lien survives part payment.
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