Under the Sale of Goods Act, 1930, which set identifies the rights an unpaid seller may have against…
Under section 46(1), passing ownership does not by itself eliminate the unpaid seller’s lien while in possession, stoppage in transit if the buyer is insolvent, or limited…
Choose your answer
Under the Sale of Goods Act, 1930, which set identifies the rights an unpaid seller may have against the goods even after ownership has passed to the buyer?
Answer and explanation
Correct answer D
Under section 46(1), passing ownership does not by itself eliminate the unpaid seller’s lien while in possession, stoppage in transit if the buyer is insolvent, or limited resale right.
Sections 47, 50 and 54 govern those rights respectively. Their conditions matter because passing ownership and taking delivery are separate events.
Option feedback
Option A
A lien depends on possession, stoppage operates during transit, and resale is subject to statutory limits.
Option B
Stoppage in transit requires the buyer’s insolvency. Resale remains subject to the Act.
Option C
Stoppage ends when transit ends, and resale is governed by the Act rather than by a general buyer-approval requirement.
Option D
This set gives the three rights recognised by section 46(1) with their central qualifications.
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