Definition Of An Unpaid Seller And His Rights

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| By Sweetsalman123
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Questions and Answers
  • 1. 

    The legal definition of an 'unpaid seller' is given in which of the following section of the Sale of Goods Act, 1930? 

    • A.

      Section 44

    • B.

      Section 4

    • C.

      Section 47

    • D.

      Section 48

    Correct Answer
    B. Section 4
    Explanation
    Section 4 of the Sale of Goods Act, 1930 defines an 'unpaid seller'. This section outlines the criteria that need to be met for a seller to be considered as unpaid. It specifies that a seller who has not received the full payment for the goods sold or the payment has been dishonored can be classified as an unpaid seller. This section helps to establish the legal rights and remedies available to an unpaid seller in case of non-payment by the buyer.

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  • 2. 

    In which of the following cases, a seller deemed to be an unpaid seller?

    • A.

      When whole of the price has not been paid or tendered.

    • B.

      When a bill of exchange of other negotiable instrument, received in payment, has been dishonoured.

    • C.

      Both (a) and (b).

    • D.

      None of these.

    Correct Answer
    C. Both (a) and (b).
    Explanation
    A seller is considered an unpaid seller when either the full price has not been paid or tendered, or when a bill of exchange or other negotiable instrument received in payment has been dishonored. In this case, both conditions (a) and (b) are met, so the correct answer is "Both (a) and (b)."

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  • 3. 

    A seller, to whom only a party of the price has been paid, falls in the category of

    • A.

      Seller

    • B.

      Partly paid seller

    • C.

      Unpaid seller

    • D.

      Conditional seller.

    Correct Answer
    C. Unpaid seller
    Explanation
    A seller, to whom only a party of the price has been paid, falls in the category of an unpaid seller. This means that the seller has not received full payment for the goods or services provided. The seller may still have rights to the goods until full payment is received, and may be able to take legal action to recover the remaining payment.

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  • 4. 

    Where the buyer offers to pay the price, the seller refuses to accept the same, the seller shall

    • A.

      Be considered as unpaid seller.

    • B.

      Not be considered as unpaid seller.

    • C.

      Lose all the rights of an unpaid seller.

    • D.

      Both (b) and (c).

    Correct Answer
    D. Both (b) and (c).
    Explanation
    If the buyer offers to pay the price but the seller refuses to accept it, the seller will not be considered as an unpaid seller. Additionally, the seller will lose all the rights of an unpaid seller. Therefore, the correct answer is both (b) and (c).

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  • 5. 

    A sold certain goods to B for Rs. 5,000 and B made the payment by cheque. However, the cheque, when presented for payment, was dishonoured. Here, A is in the position of

    • A.

      Unpaid seller

    • B.

      Ordinary seller

    • C.

      Bailor

    • D.

      None of these.

    Correct Answer
    A. Unpaid seller
    Explanation
    In this scenario, A is in the position of an unpaid seller. This is because B made the payment for the goods by cheque, but the cheque was dishonoured when presented for payment. As a result, A has not received the payment for the goods and remains unpaid.

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  • 6. 

    An unpaid seller enjoys certain special rights under the Sale of Goods Act, 1930.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The Sale of Goods Act, 1930 grants certain special rights to unpaid sellers. These rights include the right to withhold delivery of goods until payment is made, the right to stop goods in transit if the buyer is insolvent, and the right to resell the goods if the buyer fails to pay. Therefore, the statement "An unpaid seller enjoys certain special rights under the Sale of Goods Act, 1930" is true.

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  • 7. 

    Under the Sale of Goods Act, 1930, an unpaid seller hasright

    • A.

      Against the good sold.

    • B.

      Against the buyer.

    • C.

      Both (a) and (b)

    • D.

      None of these.

    Correct Answer
    C. Both (a) and (b)
    Explanation
    Under the Sale of Goods Act, 1930, an unpaid seller has rights against both the goods sold and the buyer. This means that if the buyer fails to pay for the goods, the unpaid seller can take legal action to recover the payment from the buyer. Additionally, the unpaid seller also has the right to retain the goods until payment is made or to resell the goods to recover the amount owed. Therefore, both options (a) and (b) are correct.

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  • 8. 

    Which of the following rights are available to an unpaid seller against the goods? i.           Right of lien. ii.         Right of stoppage in transit. iii.        Right of resale  iv.        Right to demand back goods.

    • A.

      (i),( ii), (iii)

    • B.

      (ii), (iii),(iv)

    • C.

      (i), (ii), (iv)

    • D.

      (i), (iii), (iv)

    Correct Answer
    A. (i),( ii), (iii)
    Explanation
    The correct answer is (i), (ii), (iii). An unpaid seller has the right of lien, which means they can retain possession of the goods until the full payment is received. They also have the right of stoppage in transit, which allows them to regain possession of the goods while they are in transit if the buyer is unable to pay. Additionally, the unpaid seller has the right of resale, which allows them to sell the goods to recover the unpaid amount.

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  • 9. 

    An unpaid seller also has the right of without the delivery of the goods sold to a buyer.

    • A.

      True, where the ownership of the goods has not transferred to the buyer.

    • B.

      False, the buyer can in no case withhold the delivery of goods sold.

    Correct Answer
    A. True, where the ownership of the goods has not transferred to the buyer.
    Explanation
    An unpaid seller has the right to withhold the delivery of goods sold to a buyer if the ownership of the goods has not been transferred. This means that if the buyer has not yet become the legal owner of the goods, the unpaid seller can refuse to deliver them. This right allows the unpaid seller to protect their interests and ensure that they are not at a disadvantage if the buyer fails to fulfill their payment obligations.

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  • 10. 

    Which of the following rights are available to an unpaid seller against the buyer?

    • A.

      Suit of price

    • B.

      Suit for interest

    • C.

      Suit for repudiation

    • D.

      AII of these.

    Correct Answer
    D. AII of these.
    Explanation
    An unpaid seller has the right to file a suit for the price of the goods sold, a suit for interest on the unpaid amount, and a suit for repudiation of the contract by the buyer. Therefore, all of these rights are available to an unpaid seller against the buyer.

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  • 11. 

    Where the ownership of the goods is transferred to the buyer, which of the following rights are available to an unpaid seller.

    • A.

      Right of lien

    • B.

      Right of stoppage in transit

    • C.

      Both (a) and (b)

    • D.

      None of these.

    Correct Answer
    C. Both (a) and (b)
    Explanation
    When the ownership of the goods is transferred to the buyer, an unpaid seller has the right of lien and the right of stoppage in transit. The right of lien allows the seller to retain possession of the goods until the buyer pays the outstanding amount. The right of stoppage in transit allows the seller to regain possession of the goods while they are in transit if the buyer is unable to pay for them. Both these rights provide the unpaid seller with legal remedies to protect their interests in the goods.

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  • 12. 

    Under the Sale of Goods Act, 1930, a seller is considered an unpaid seller when i.       a part of price has been paid ii.      whole of price has not been paid or tendered. iii.    Whole of price is tendered but seller refuses to accept iv.    A bill of exchange or other negotiable instrument, received in payment, has been dishonoured.

    • A.

      (I), (ii), (iii)

    • B.

      (ii), (iii), (iv)

    • C.

      (i),(ii), (iv)

    • D.

      (i), (iii), (iv).

    Correct Answer
    C. (i),(ii), (iv)
    Explanation
    According to the Sale of Goods Act, 1930, a seller is considered an unpaid seller when a part of the price has been paid, the whole price has not been paid or tendered, and a bill of exchange or other negotiable instrument received in payment has been dishonored. Therefore, the correct answer is (i), (ii), (iv).

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  • 13. 

    The right of lien of an unpaid seller depends on

    • A.

      Ownership of goods

    • B.

      Possession of goods

    • C.

      Title of goods

    • D.

      Both (a)&(c).

    Correct Answer
    B. Possession of goods
    Explanation
    The right of lien of an unpaid seller depends on possession of goods. This means that if the seller has not been paid for the goods, they have the right to retain possession of the goods until payment is made. This right allows the seller to have some control over the goods and ensures that they are not left with unpaid debts. Ownership of goods and title of goods are not directly relevant to the right of lien, as possession is the key factor in this case.

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  • 14. 

    The unpaid seller's right of lien is provided in________________    

    • A.

      Section 47 (1)

    • B.

      Section 48(1)

    • C.

      Section 49

    • D.

      None of these

    Correct Answer
    A. Section 47 (1)
    Explanation
    The correct answer is Section 47 (1). This section of the law provides the unpaid seller with the right of lien. A lien allows the seller to retain possession of the goods until the buyer has paid the full purchase price. This gives the seller some security in case the buyer fails to make payment.

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  • 15. 

    The unpaid seller can exercise his right of lien over the goods, for

    • A.

      Price of goods

    • B.

      Storage charges

    • C.

      Any lawful charge

    • D.

      All of these.

    Correct Answer
    A. Price of goods
    Explanation
    The unpaid seller has the right to exercise his right of lien over the goods for the price of the goods. This means that if the buyer has not paid for the goods, the seller can retain possession of the goods until payment is made. This is a legal protection for the seller to ensure that they receive the payment they are owed.

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  • 16. 

    The unpaid seller can exercise his right of lien over the goods where he is in possession of the goods as a 

    • A.

      Owner of goods

    • B.

      Agent of buyer

    • C.

      Bailee for buyer

    • D.

      Any of these.

    Correct Answer
    D. Any of these.
    Explanation
    The unpaid seller can exercise his right of lien over the goods regardless of whether he is the owner of the goods, an agent of the buyer, or a bailee for the buyer. This means that as long as the seller is in possession of the goods, he has the right to retain possession until the buyer fulfills his payment obligations.

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  • 17. 

    The right of lien is exercised by unpaid seller in order to

    • A.

      Retain possession of goods

    • B.

      Recover damages

    • C.

      Regain possession of goods

    • D.

      Punish the buyer

    Correct Answer
    A. Retain possession of goods
    Explanation
    The right of lien allows the unpaid seller to retain possession of the goods until the buyer fulfills their payment obligations. This means that the seller can hold onto the goods as security until they receive payment. This is a common practice to ensure that sellers are protected and can recover their losses if the buyer fails to make the necessary payment. It does not involve recovering damages, regaining possession of goods, or punishing the buyer.

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  • 18. 

    In which of the following cases, an unpaid seller of goods, who is an possession of them , is entitled to retain the possession until the entire price is paid or tendered?

    • A.

      Where the goods have been sold without any stipulation as to credit.

    • B.

      Where the goods have been sold on credit, but the term of credit has expired.

    • C.

      Where the buyer becomes insolvent.

    • D.

      All of these.

    Correct Answer
    D. All of these.
    Explanation
    An unpaid seller of goods, who is in possession of them, is entitled to retain the possession until the entire price is paid or tendered in the following cases: where the goods have been sold without any stipulation as to credit, where the goods have been sold on credit but the term of credit has expired, and where the buyer becomes insolvent. In all of these situations, the seller has the right to retain possession of the goods until payment is received.

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  • 19. 

    The right of lien is divisible and the seller can be compelled to deliver a part of the gods on the payment of proportionate price of goods.

    • A.

      True, as it is the legal position on the point.

    • B.

      False, as the right of lien is indivisible in nature.

    Correct Answer
    B. False, as the right of lien is indivisible in nature.
    Explanation
    The statement is false because the right of lien is actually divisible in nature. This means that the seller can be compelled to deliver a part of the goods if the buyer pays the proportionate price for that part. In other words, the seller cannot withhold the entire goods if the buyer is willing to pay for a portion of them.

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  • 20. 

    Which of the following statement is incorrect?

    • A.

      In case of insolvency of the buyer, an unpaid seller can exercise his lien if whole of the price is not paid.

    • B.

      In case of credit sale, an unpaid seller can exercise his lien if the buyer fails to pay the whole of the price after the expiry of credit period.

    • C.

      In case of cash sale, an unpaid seller has no right of lien even if the whole price is not paid,

    • D.

      In case of a part delivery of goods, an unpaid seller may exercise his lien on the -remaining part of goods if the part delivery, is not intended as delivery of the whole.

    Correct Answer
    C. In case of cash sale, an unpaid seller has no right of lien even if the whole price is not paid,
    Explanation
    In case of cash sale, an unpaid seller has no right of lien even if the whole price is not paid. This means that if a buyer purchases goods with cash and does not pay the full price, the unpaid seller cannot withhold or retain possession of the goods as a security for payment. This is different from the other statements, which state that an unpaid seller can exercise his lien in various scenarios such as insolvency of the buyer or failure to pay after the expiry of credit period.

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  • 21. 

    In which of the following cases, the unpaid seller loses his right of lien?

    • A.

      Delivery of goods to buyer

    • B.

      Delivery of goods to carrier

    • C.

      Tender of price by buyer

    • D.

      All of these.

    Correct Answer
    D. All of these.
    Explanation
    The unpaid seller loses his right of lien in all of these cases. When the goods are delivered to the buyer, the seller loses his right to retain possession of the goods until payment is made. Similarly, when the goods are delivered to the carrier, the seller's right of lien is also lost. Lastly, if the buyer tenders the price, the seller cannot retain the goods and must deliver them. Therefore, in all of these situations, the unpaid seller loses his right of lien.

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  • 22. 

    Where the unpaid seller has parted with the possession of the goods, seller's right of lien is lost.

    • A.

      True, the lien is lost as soon as the possession is lost.

    • B.

      False, the lien is lost only when the ownership is transferred to the buyer.

    Correct Answer
    A. True, the lien is lost as soon as the possession is lost.
    Explanation
    When the unpaid seller has given up possession of the goods, their right of lien is lost. This means that if the seller no longer has physical control over the goods, they cannot retain them as security for the unpaid amount. Therefore, the statement "True, the lien is lost as soon as the possession is lost" accurately explains the situation.

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  • 23. 

    The unpaid seller can exercise his right of stoppage of goods in transit where before paying the price, the buyer.

    • A.

      Becomes insolvent

    • B.

      Refuses to pay price

    • C.

      Acts fraudulently

    • D.

      All of these.

    Correct Answer
    A. Becomes insolvent
    Explanation
    The unpaid seller can exercise his right of stoppage of goods in transit if the buyer becomes insolvent. This means that if the buyer is unable to pay their debts or fulfill their financial obligations, the unpaid seller can halt the delivery of goods that are still in transit. This is a measure taken to protect the seller's interests and ensure that they are not left with unpaid goods.

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  • 24. 

    The unpaid seller's right of stoppage of goods in transit is provided in  ___________.

    • A.

      Section 48

    • B.

      Section 49

    • C.

      Section 50

    • D.

      Section 51

    Correct Answer
    C. Section 50
    Explanation
    The correct answer is Section 50. Section 50 of the law provides the unpaid seller with the right to stop the goods in transit. This means that if the buyer fails to pay for the goods, the seller can retain possession of the goods and prevent them from being delivered to the buyer. This right allows the seller to protect their interests and ensure that they are compensated for the goods.

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  • 25. 

    The unpaid seller can exercise the right of stoppage of goods in transit for

    • A.

      Price of goods

    • B.

      Storage charges

    • C.

      Any lawful charges

    • D.

      All of these.

    Correct Answer
    A. Price of goods
    Explanation
    The unpaid seller can exercise the right of stoppage of goods in transit for the price of goods. This means that if the buyer has not paid for the goods, the seller has the right to stop the goods while they are in transit and retain possession of them until payment is made. This allows the seller to protect their interests and ensure they are paid for the goods they have supplied.

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  • 26. 

    The 'stoppage in transit' means the stopping of the goods while they are in the course of transmission to the

    • A.

      Seller

    • B.

      Buyer

    • C.

      Seller's agent

    • D.

      None of these

    Correct Answer
    B. Buyer
    Explanation
    The term "stoppage in transit" refers to the halting of goods while they are being transported from the seller to the buyer. Therefore, the correct answer is the Buyer, as they are the party who is receiving the goods. The Seller, Seller's agent, and None of these options are incorrect because they do not accurately represent the party that the goods are being transmitted to.

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  • 27. 

    Where the buyer becomes insolvent and the unpaid seller has parted with the possession of the goods sold, he can stop the goods in transit until

    • A.

      Price is paid

    • B.

      Price is tendered

    • C.

      Seller sues for price 1

    • D.

      Either (a) or (b).

    Correct Answer
    D. Either (a) or (b).
    Explanation
    When the buyer becomes insolvent and the unpaid seller has already given the goods to the buyer, the seller can stop the goods in transit until either the price is paid or the price is tendered. This means that the seller has the right to halt the delivery of the goods until the buyer either pays for the goods or offers to pay for them. This gives the seller some protection in case the buyer is unable to fulfill their payment obligations.

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  • 28. 

    The right of stoppage of goods in transit is exercised by an unpaid seller in order to

    • A.

      Retain possession of goods

    • B.

      Regain possession of goods

    • C.

      Recover damages

    • D.

      Punish the buyer.

    Correct Answer
    B. Regain possession of goods
    Explanation
    The right of stoppage of goods in transit is exercised by an unpaid seller in order to regain possession of goods. This means that if the buyer has not paid for the goods, the seller has the right to stop the goods while they are in transit and take possession of them again. This is a way for the seller to protect their interests and ensure that they are not left without payment for the goods they have sold. It is a legal remedy available to unpaid sellers to recover their goods and prevent the buyer from receiving them without paying for them.

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  • 29. 

    The unpaid seller can exercise the right of stoppage in transit where the middleman i.e., carrier holds the goods as an

    • A.

      Agent of seller

    • B.

      Agent of buyer

    • C.

      Independent person i.e., in his own name.

    • D.

      Both (a) and (b).

    Correct Answer
    C. Independent person i.e., in his own name.
    Explanation
    The correct answer is "Independent person i.e., in his own name." This means that the middleman, who is the carrier holding the goods, is not acting as an agent of either the seller or the buyer. The unpaid seller can exercise the right of stoppage in transit in this situation, allowing them to regain possession of the goods and prevent their delivery to the buyer.

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  • 30. 

    Where by exercising the right of stoppage in transit, the unpaid seller regains the possession of the goods, then

    • A.

      Buyer's lien revives

    • B.

      Buyer's lien does not revive

    • C.

      Seller's possessiort is unlawful

    • D.

      Contract of sale of terminated.

    Correct Answer
    A. Buyer's lien revives
    Explanation
    When the unpaid seller exercises the right of stoppage in transit and regains possession of the goods, the buyer's lien revives. This means that the buyer once again has the right to retain the goods until the full payment is made to the seller. The exercise of stoppage in transit allows the seller to reclaim the goods while they are still in transit to the buyer, in order to protect their rights and prevent the buyer from taking possession without paying for them. Therefore, the buyer's lien, which was temporarily suspended during the transit, is revived and the buyer can once again assert their right to retain the goods.

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  • 31. 

    Where the goods are rejected by the buyer and the carrier or other bailee continues to be in possession of the goods, then he transit

    • A.

      Comes to an end

    • B.

      Does not come to an end

    • C.

      Commences

    • D.

      Is illegal.

    Correct Answer
    B. Does not come to an end
    Explanation
    When the buyer rejects the goods but the carrier or bailee still has possession of them, it means that the transit has not come to an end. The rejection by the buyer does not automatically terminate the transit, as the carrier or bailee still has the responsibility to transport and deliver the goods. The transit will only come to an end once the carrier or bailee completes the delivery process or takes further action based on the buyer's rejection.

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  • 32. 

    The transit commences form the time when the goods are delivered to the carrier or other bailee and it continues till the buyer

    • A.

      Takes the delivery of goods

    • B.

      Refuses to pay the price

    • C.

      Becomes insolvent

    • D.

      Pays the full price.

    Correct Answer
    A. Takes the delivery of goods
    Explanation
    The transit commences when the goods are delivered to the carrier or bailee and it continues until the buyer takes delivery of the goods. This means that once the buyer receives the goods, the transit is considered complete. The other options listed (refusing to pay the price, becoming insolvent, paying the full price) are not relevant to the transit of goods.

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  • 33. 

    The unpaid seller's right of stoppage in transit is lost when the

    • A.

      Possession of goods is regained

    • B.

      Buyer refuses to pay price

    • C.

      Transit comes to an end

    • D.

      Both (a) and (b).

    Correct Answer
    C. Transit comes to an end
    Explanation
    The unpaid seller's right of stoppage in transit is lost when the transit comes to an end. This means that once the goods have reached their final destination or have been delivered to the buyer, the seller's right to stop the goods in transit and regain possession is no longer applicable. This is because the purpose of stoppage in transit is to allow the seller to retain control over the goods until the buyer fulfills their payment obligations. Once the transit comes to an end, the seller no longer has the ability to exercise this right.

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  • 34. 

    In which of the following cases, seller's right of stoppage in transit is lost ?

    • A.

      Buyer's act of taking delivery form carrier.

    • B.

      Carrier's acknowledgement to the buyer.

    • C.

      Carrier's wrongful refusal to deliver the goods to the buyer.

    • D.

      All of these.

    Correct Answer
    D. All of these.
    Explanation
    The seller's right of stoppage in transit is lost in all of the given cases. When the buyer takes delivery from the carrier, it signifies that the goods have reached their destination and the seller's right of stoppage is no longer applicable. Similarly, when the carrier acknowledges the buyer, it indicates that the goods have been delivered and the seller's right is lost. Additionally, if the carrier wrongfully refuses to deliver the goods to the buyer, it implies that the goods are no longer in transit and the seller's right is extinguished. Therefore, all of these scenarios result in the loss of the seller's right of stoppage in transit.

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  • 35. 

    If the carrier wrongfully (i.e., without any just cause) refuses to deliver the goods to the buyer. Then the

    • A.

      Transit comes to an end

    • B.

      Right of stoppage in transit is lost

    • C.

      Transit does not come to an end

    • D.

      Both (a) and (b)

    Correct Answer
    B. Right of stoppage in transit is lost
    Explanation
    If the carrier wrongfully refuses to deliver the goods to the buyer without any valid reason, it means that the buyer's right to stop the goods in transit is lost. The right of stoppage in transit allows the buyer to halt the delivery of goods if certain conditions are met, such as the seller becoming insolvent or the buyer having valid reasons to reject the goods. However, if the carrier wrongfully refuses to deliver the goods, the buyer loses this right as there is no need to stop the goods in transit if they are already wrongfully withheld by the carrier. Therefore, the correct answer is "Right of stoppage in transit is lost."

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  • 36. 

    If after arrival of the goods at appointed destination, the carrier acknowledges to the buyer that he is now holding the goods on his behalf, but the buyer instructs the carrier to carry the goods to some other destination, then.

    • A.

      Transit comes to an end

    • B.

      Transit does not come to an end

    • C.

      Seller's right of lien revives

    • D.

      None of these.

    Correct Answer
    A. Transit comes to an end
    Explanation
    When the carrier acknowledges that they are holding the goods on behalf of the buyer, it signifies the end of the transit. However, if the buyer instructs the carrier to transport the goods to a different destination, it does not affect the fact that the transit has already ended. Therefore, the correct answer is that transit comes to an end.

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  • 37. 

    If the buyer takes a seat in the same ship which is carrying the goods to the buyer's destination, then the buyer's taking seat amounts to

    • A.

      End of transit

    • B.

      Loss of stoppage in transit right

    • C.

      Revival of seller's lien

    • D.

      None of these.

    Correct Answer
    D. None of these.
    Explanation
    The buyer taking a seat in the same ship does not have any effect on the legal rights and obligations related to the transit of goods. It does not signify the end of transit, loss of stoppage in transit right, or revival of the seller's lien. Therefore, the correct answer is "None of these."

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  • 38. 

    The unpaid seller can exercise his right of stoppage in transit by giving notice to the carrier to stop the goods and redeliver them to the seller or according to his directions.

    • A.

      True, as this is also the recognised mode of exercising this right.

    • B.

      False, as this right can be exercised only by taking the actual possession.

    Correct Answer
    A. True, as this is also the recognised mode of exercising this right.
    Explanation
    The statement is true because the unpaid seller can indeed exercise their right of stoppage in transit by giving notice to the carrier to stop the goods and redeliver them to the seller or according to their directions. This is a recognized mode of exercising this right, as it allows the seller to regain control of the goods and prevent their delivery to the buyer until the outstanding payment is made.

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  • 39. 

    On buyer's failure to pay the price within reasonable time the unpaid seller can resell the goods to someone else, where

    • A.

      Goods are perishable

    • B.

      Seller has reserved such right

    • C.

      Both (a) and (b)

    • D.

      None of these.

    Correct Answer
    C. Both (a) and (b)
    Explanation
    Both (a) and (b) are correct because if the goods are perishable, it is necessary for the seller to resell them quickly in order to avoid spoilage or loss of value. Additionally, if the seller has explicitly reserved the right to resell the goods in the event of non-payment, they have the legal authority to do so. Therefore, in this scenario, both conditions are met, allowing the unpaid seller to resell the goods to someone else.

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  • 40. 

    The unpaid seller has the right to resell the goods where he has exercised his right of lien or stoppage in transit.

    • A.

      True, as it is recognised under the Sale of Goods Act 1930.

    • B.

      False as no such right is given to him under the Sale of Goods Act, 1930.

    Correct Answer
    A. True, as it is recognised under the Sale of Goods Act 1930.
    Explanation
    The statement is true because under the Sale of Goods Act 1930, an unpaid seller has the right to resell the goods if he has exercised his right of lien or stoppage in transit. This means that if the buyer fails to pay for the goods, the seller can retain possession of the goods (lien) or stop the goods in transit before they reach the buyer. In such cases, the seller can resell the goods to recover the unpaid amount.

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  • 41. 

    After exercising his right of lien, the unpaid seller may give a notice to pay or ender the price within

    • A.

      15 days

    • B.

      30 days

    • C.

      Reasonable time

    • D.

      None of these.

    Correct Answer
    C. Reasonable time
    Explanation
    The correct answer is "Reasonable time" because after exercising his right of lien, the unpaid seller has the option to give a notice to the buyer to either pay or render the price within a reasonable time. The concept of "reasonable time" is subjective and depends on the specific circumstances of the transaction. It allows for flexibility and takes into account factors such as the nature of the goods, the industry standards, and any prior agreements between the buyer and seller.

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  • 42. 

    After regaining possession of the goods by exercising his right of stoppage in transit, the unpaid seller can also resell the goods to someone else.

    • A.

      True, if after notice, the buyer fails to pay or tender the price within reasonable time .

    • B.

      False, as in this case no right of resale is available to the unpaid seller.

    Correct Answer
    A. True, if after notice, the buyer fails to pay or tender the price within reasonable time .
    Explanation
    The correct answer is True, if after notice, the buyer fails to pay or tender the price within a reasonable time. This is because the right of resale is available to the unpaid seller only if the buyer fails to pay or tender the price within a reasonable time after notice. If the buyer does not fulfill their payment obligations, the unpaid seller can exercise their right of stoppage in transit and resell the goods to someone else.

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  • 43. 

    Where the unpaid seller resells the goods without giving a notice to the buyer and there is loss on resale, then the unpaid seller.

    • A.

      Is guilty of breach of contract.

    • B.

      Can recover the loss from the buyer.

    • C.

      Cannot recover the loss form the buyer.

    • D.

      Can recover the loss form mercantile association.

    Correct Answer
    C. Cannot recover the loss form the buyer.
    Explanation
    When the unpaid seller resells the goods without giving notice to the buyer and there is a loss on resale, the unpaid seller cannot recover the loss from the buyer. This is because the unpaid seller did not fulfill their obligation to notify the buyer before reselling the goods. Therefore, they cannot hold the buyer responsible for the loss incurred on the resale.

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  • 44. 

     Where he unpaid seller resells the goods without giving a notice to the buyer and  there is profit on resale, then the unpaid seller is

    • A.

      Bound to return it to the original a buyer

    • B.

      Not bound to return it to the original buyer.

    • C.

      At liberty to retain it for his own use.

    • D.

      Guilty of breach of contract.

    Correct Answer
    A. Bound to return it to the original a buyer
    Explanation
    If the unpaid seller resells the goods without giving notice to the buyer and makes a profit on the resale, they are bound to return it to the original buyer. This means that even though the seller has resold the goods, they are still obligated to give them back to the buyer who initially purchased them. This is because the seller did not follow the proper procedure of notifying the buyer before reselling the goods, and therefore, they are not entitled to keep the profit from the resale.

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  • 45. 

    Which of the following statements is correct if an unpaid seller results the goods after giving a notice to the buyer of his intention to resell the goods?

    • A.

      The unpaid seller can recover the loss form the original buyer, if the resale price is less than the original contract price.

    • B.

      The unpaid seller cannot recover any loss form the original buyer.

    • C.

      The unpaid seller can retain the profit if the resale price is higher than the original contract price.

    • D.

      Both (a) and (c) are correct.

    Correct Answer
    D. Both (a) and (c) are correct.
    Explanation
    If an unpaid seller resells the goods after giving notice to the buyer of their intention to do so, they can recover the loss from the original buyer if the resale price is less than the original contract price. Additionally, the unpaid seller can retain the profit if the resale price is higher than the original contract price. Therefore, both statements (a) and (c) are correct.

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  • 46. 

    Where the seller has expressly reserved his right of resale and resells the goods without giving a notice to the buyer, then incase of loss on resale the seller is

    • A.

      Entitled to recover the same from the original buyer.

    • B.

      Not entitled to recover the same form the original buyer.

    • C.

      Guilty of breach of contract of sale.

    • D.

      Entitled to recover the same from mercantile association.

    Correct Answer
    A. Entitled to recover the same from the original buyer.
    Explanation
    In this scenario, the seller has explicitly reserved the right to resell the goods and has done so without notifying the buyer. If there is a loss on the resale, the seller is entitled to recover the same from the original buyer. This is because the buyer was aware of the seller's right to resell and did not object or fulfill their obligations under the contract. Therefore, the seller can hold the original buyer responsible for any loss incurred.

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  • 47. 

    The unpaid seller can withhold the delivery of the goods where the buyer

    • A.

      Fails to a pay the price

    • B.

      Become insolvent

    • C.

      Fails to pay damages

    • D.

      Both (a) and (b).

    Correct Answer
    D. Both (a) and (b).
    Explanation
    The correct answer is Both (a) and (b). The unpaid seller has the right to withhold the delivery of goods in two situations. Firstly, if the buyer fails to pay the price of the goods, and secondly, if the buyer becomes insolvent. In both cases, the unpaid seller can exercise their right to retain the goods until the payment is made or the insolvency issue is resolved.

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  • 48. 

    The rights of withholding deliver in is similar to and coextensive with the right of

    • A.

      Lien

    • B.

      Stoppage in transit

    • C.

      Both (a) & (b)

    • D.

      None of these.

    Correct Answer
    C. Both (a) & (b)
    Explanation
    Both the rights of withholding delivery and lien are similar and coextensive with each other. The right of withholding delivery allows the seller to retain possession of the goods until the buyer fulfills their obligations, such as payment. Similarly, the right of lien gives the seller the right to retain possession of the goods until the buyer settles any outstanding debts. Therefore, the correct answer is both (a) and (b), as both rights are similar and coextensive with each other.

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  • 49. 

    Which of the following rights are available to an unpaid seller against the buyer?

    • A.

      Suit for price

    • B.

      Suit for interest

    • C.

      Suit for damages

    • D.

      All of these

    Correct Answer
    D. All of these
    Explanation
    An unpaid seller has the right to take legal action against the buyer for various remedies. They can file a suit for the price of the goods sold, seeking payment from the buyer. Additionally, they can also file a suit for interest on the unpaid amount, compensating for the delay in payment. Furthermore, the unpaid seller can also file a suit for damages, claiming compensation for any losses or harm caused due to non-payment. Therefore, all of these rights are available to an unpaid seller against the buyer.

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  • 50. 

    On the transfer of ownership, rf the buyer fails to accept tne gooes and pay for them, then the seller can file a suit for recovery of

    • A.

      Price

    • B.

      Interest

    • C.

      None of these

    • D.

      Both (a) and (b).

    Correct Answer
    D. Both (a) and (b).
    Explanation
    If the buyer fails to accept the goods and pay for them, the seller can file a suit for recovery of both the price of the goods and any interest that may be due. This means that the seller can seek legal action to recover not only the amount owed for the goods but also any additional interest that may have accrued. Therefore, the correct answer is "Both (a) and (b)."

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