Under section 50 of the Sale of Goods Act, 1930, an unpaid seller has parted with possession and the…
Under section 50, an unpaid seller who has parted with possession may stop the goods if the buyer becomes insolvent and transit continues. The seller may recover possession…
Choose your answer
Under section 50 of the Sale of Goods Act, 1930, an unpaid seller has parted with possession and the goods are still in transit. Which event concerning the buyer gives rise to the statutory right of stoppage?
Answer and explanation
Correct answer A
Under section 50, an unpaid seller who has parted with possession may stop the goods if the buyer becomes insolvent and transit continues. The seller may recover possession and retain the goods until payment or tender of the price. Sections 46 and 51 of the Sale of Goods Act, 1930 distinguish this remedy and define the duration of transit.
Option feedback
Option A
Insolvency activates the right when the unpaid seller has parted with possession and transit continues.
Option B
A refusal to pay does not by itself satisfy the insolvency condition.
Option C
Fraud alone does not satisfy the insolvency condition for stoppage.
Option D
A request to delay delivery does not give the unpaid seller the right of stoppage.
Practice for these exams
-
UGC NET Law
Subject revision
See pack details on LawMint.net -
Punjab Judicial Services
-
CUET PG Law (LL.M.)
Subject revision