Under the Sale of Goods Act, 1930, can goods in transit be stopped by an unpaid seller, after agreeing…
Section 50 permits an unpaid seller who has parted with possession to stop goods still in transit when the buyer becomes insolvent, and retain them until payment or tender…
Choose your answer
Under the Sale of Goods Act, 1930, can goods in transit be stopped by an unpaid seller, after agreeing to receive the price later on, when the buyer becomes insolvent?
Answer and explanation
Correct answer B
Section 50 permits an unpaid seller who has parted with possession to stop goods still in transit when the buyer becomes insolvent, and retain them until payment or tender of the price. Agreeing to credit does not prevent this insolvency-based protection. Section 52 permits taking possession or notifying the carrier or bailee; obtaining a court injunction is not a general prerequisite.
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