Under the Sale of Goods Act, 1930, which right of an unpaid seller requires the buyer to have become…
Section 50 makes buyer insolvency a condition of stoppage in transit. The unpaid seller must also have parted with possession while the goods remain in transit. Lien, resale…
Choose your answer
Under the Sale of Goods Act, 1930, which right of an unpaid seller requires the buyer to have become insolvent?
Answer and explanation
Correct answer C
Section 50 makes buyer insolvency a condition of stoppage in transit. The unpaid seller must also have parted with possession while the goods remain in transit. Lien, resale and a suit for the price have other statutory bases that do not invariably require insolvency.
Option feedback
Option A
Lien also arises on an unpaid cash sale or expired credit, so insolvency is not indispensable.
Option B
Resale can occur for perishable goods or after the statutory notice conditions without insolvency.
Option C
Section 50 requires buyer insolvency, parted possession and goods remaining in transit.
Option D
A suit for the price is governed by section 55 and does not invariably require insolvency.
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