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Under section 54(2) of the Sale of Goods Act, 1930, an unpaid seller who has exercised the right of lien or stoppage in transit may resell the goods without first giving the buyer notice of the…

Question and options

Under section 54(2) of the Sale of Goods Act, 1930, an unpaid seller who has exercised the right of lien or stoppage in transit may resell the goods without first giving the buyer notice of the intention to resell when the goods are:

  1. specific goods in a deliverable state

  2. goods sold by description

  3. goods of a perishable nature

  4. goods sold by sample

Answer and explanation

Correct answer: C - goods of a perishable nature

Section 54(2) of the Sale of Goods Act, 1930 lets an unpaid seller who has exercised lien or stoppage in transit resell where the goods are of a perishable nature, or, in other cases, after giving the buyer notice of the intention to resell and the buyer failing to pay or tender the price within a reasonable time. Specific goods in a deliverable state, and goods sold by sample or by description, fall under the general rule, so notice is needed before resale.

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