Which remedies can an unpaid seller have against the goods under the Sale of Goods Act, 1930, when the…
An unpaid seller in possession may retain the goods if no credit was given, the credit period has expired, or the buyer becomes insolvent. If the buyer becomes insolvent and…
Choose your answer
Which remedies can an unpaid seller have against the goods under the Sale of Goods Act, 1930, when the conditions for each remedy are met?
Answer and explanation
Correct answer A
An unpaid seller in possession may retain the goods if no credit was given, the credit period has expired, or the buyer becomes insolvent. If the buyer becomes insolvent and possession has been surrendered, the seller may stop goods still in transit.
The right of resale is limited by the Act. Section 54 addresses resale, including perishable goods or resale after notice and failure to pay or tender within a reasonable time.
Option feedback
Option A
Section 46(1) recognises all three rights subject to the applicable statutory conditions.
Option B
The remedies also include stoppage in transit and resale.
Option C
Section 46(1)(c) recognises a limited right of resale as well.
Option D
Section 46(1)(b) also recognises stoppage in transit if the buyer becomes insolvent.
Practice for these exams
-
UGC NET Law
Subject revision
See pack details on LawMint.net -
Punjab Judicial Services
-
CUET PG Law (LL.M.)
Subject revision