Under the Sale of Goods Act, 1930, where a bill of exchange or other negotiable instrument has been…
Section 45(1)(b) makes the seller unpaid "when a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was…
Choose your answer
Under the Sale of Goods Act, 1930, where a bill of exchange or other negotiable instrument has been received by the seller as conditional payment, the seller remains unpaid if such instrument is:
Answer and explanation
Correct answer C
Section 45(1)(b) makes the seller unpaid "when a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise". An instrument honoured on presentation, or one taken as absolute payment, discharges the price.
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