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Under section 51 of the Sale of Goods Act, 1930, assess the two statements. Statement I. Transit ends…

Section 51(2) ends transit upon early delivery to the buyer or the buyer's authorized agent. Section 51(4) says that rejection plus continued possession by the carrier or…

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Under section 51 of the Sale of Goods Act, 1930, assess the two statements.

Statement I. Transit ends if the buyer or the buyer's authorized agent obtains delivery before the goods reach the appointed destination.

Statement II. If the buyer rejects the goods and the carrier or other bailee keeps possession, transit ends even if the seller refuses to take them back.

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Answer and explanation

Correct answer C

Section 51(2) ends transit upon early delivery to the buyer or the buyer's authorized agent.

Section 51(4) says that rejection plus continued possession by the carrier or other bailee does not end transit.

The seller's refusal to receive the rejected goods back does not change that result under section 51(4).

Option feedback

Option A

The rejection scenario leaves transit continuing, so the second statement is false.

Option B

Early delivery ends transit under section 51(2).

Option C

Early delivery ends transit and rejection with continuing carrier possession does not.

Option D

This reverses both statutory outcomes.

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