Examveda
Examveda

Which of the following is not the right of an unpaid seller under Sale of Goods Act, 1930:

A. Right of lien on goods for the price while the goods are in possession of seller

B. Right of stopping the goods in transit, in case of insolvency of buyer

C. Right of resale as limited by the Act

D. Right of withholding delivery where the property in the goods has passed to the buyer

Answer: Option D

Solution(By Examveda Team)

The Sale of Goods Act, 1930, provides various rights to an unpaid seller. However, the right of withholding delivery specifically pertains to cases where the property in the goods has not passed to the buyer. An unpaid seller can exercise this right to retain possession of the goods until the full payment is made or satisfactory security is provided by the buyer. Once the property in the goods has passed to the buyer, the unpaid seller generally loses the right of withholding delivery.

Option A: Right of lien on goods for the price while the goods are in possession of seller is a valid right of an unpaid seller. Lien allows the seller to retain possession of the goods until the price is paid.

Option B: Right of stopping the goods in transit, in case of insolvency of buyer is another right of an unpaid seller. It allows the seller to stop the goods during transit if the buyer becomes insolvent.

Option C: Right of resale as limited by the Act is also a valid right of an unpaid seller. The Act permits the seller to resell the goods in certain circumstances.

Given the options provided, the correct answer is Option D: Right of withholding delivery where the property in the goods has passed to the buyer.

This Question Belongs to Law >> Sale Of Goods Act

Join The Discussion

Comments ( 1 )

  1. Manish Lohchab
    Manish Lohchab :
    8 months ago

    As per section 46 option D is available with the unpaid seller. Hence correct answer should be A

Related Questions on Sale of Goods Act