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All questions of Unit 4: Unpaid Seller for CA Foundation Exam
Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:- a)Cannot claim the same form the buyer as damages
- b)Can claim the same from the buyer as damages
- c)Sue the buyer for not purchasing
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:
a)
Cannot claim the same form the buyer as damages
b)
Can claim the same from the buyer as damages
c)
Sue the buyer for not purchasing
d)
None of the above
|
Priya Patel answered |
RIGHTS OF AN UNPAID SELLER (SEC. 45 TO 44)
Where a buyer to who property in the goods have passed, fails to pay the price there of the seller has a right to file a suit against the buyer for the price and similarly where the purchaser is responsible for non-fulfillment of some conditions in a contract of sale, he shall be liable to the seller for damages but these rights of a seller are based upon the personal liability of the buyer.
But there is another class of rights which are given to an unpaid seller by section 45 to 54 of Sale of Goods Act, 1930 and these rights are available only against the goods and not against the purchaser personally.
Seller has right of resale where- a)Goods are perishable
- b)Seller has reserved such right
- c)Seller gives notice
- d)All of these
Correct answer is option 'A'. Can you explain this answer?
Seller has right of resale where
a)
Goods are perishable
b)
Seller has reserved such right
c)
Seller gives notice
d)
All of these
|
Alok Mehta answered |
Right of Resale (Section 54) The right of resale is an important right for an unpaid seller.Unpaid seller resells the goods post exercising his right of lien or stoppage: The subsequent buyer acquires a good title to the goods even if the seller has not given a notice of resale to the original buyer.
Right against goods include: - a)Right of Rem
- b)Right of Personam
- c)Both
- d)None
Correct answer is option 'A'. Can you explain this answer?
Right against goods include:
a)
Right of Rem
b)
Right of Personam
c)
Both
d)
None
|
Purva Kirad answered |
Right of rem is right to right of good and right of personam mean right against person
The unpaid seller is not required to inform the buyer in case he resells the goods but the goods must be: - a)Perishable goods
- b)Non-perishable goods
- c)Durable goods
- d)Consumer goods
Correct answer is option 'A'. Can you explain this answer?
The unpaid seller is not required to inform the buyer in case he resells the goods but the goods must be:
a)
Perishable goods
b)
Non-perishable goods
c)
Durable goods
d)
Consumer goods
|
|
Arun Khanna answered |
Perishable goods: Goods such as food products that must be used within a short period of time.
If the goods are rejected by the buyer, and the carrier or other bailee continues in possession of them, then the transit ________even if the seller has refused to receive them back:- a)Is deemed to be at an end
- b)Is not deemed to be at an end
- c)In nobody’s hand
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
If the goods are rejected by the buyer, and the carrier or other bailee continues in possession of them, then the transit ________even if the seller has refused to receive them back:
a)
Is deemed to be at an end
b)
Is not deemed to be at an end
c)
In nobody’s hand
d)
None of the above
|
Janhavi Basu answered |
's possession anymore.
a) Is deemed to be at an end.
a) Is deemed to be at an end.
Which are not the conditions fulfilled before a seller is deemed to be an unpaid seller?- a)He must be unpaid either wholly or partly
- b)He must have not refused payment when tendered
- c)He must have sold goods against cash or in exchange of other thing
- d)He must have an immediate right of action for the price
Correct answer is option 'C'. Can you explain this answer?
Which are not the conditions fulfilled before a seller is deemed to be an unpaid seller?
a)
He must be unpaid either wholly or partly
b)
He must have not refused payment when tendered
c)
He must have sold goods against cash or in exchange of other thing
d)
He must have an immediate right of action for the price
|
Kavita Joshi answered |
When buyer does not pay the price of the goods, the seller is deemed to be unpaid. The seller of goods is deemed to be an unpaid seller
within the meaning of this act:
When the whole of the price has not been/paid or tendered or When a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonor of the instrument or otherwise.
At a auction sale, X makes the highest bid for a flower vase. The auctioneer strikes the table with hammer on which flower vase was kept and it fell down and broke into several pieces. In this case, the loss will fall on__________.- a)The auctioneer
- b)The bidder, X
- c)Equally on X and the auctioneer
- d)None of the above.
Correct answer is option 'A'. Can you explain this answer?
At a auction sale, X makes the highest bid for a flower vase. The auctioneer strikes the table with hammer on which flower vase was kept and it fell down and broke into several pieces. In this case, the loss will fall on__________.
a)
The auctioneer
b)
The bidder, X
c)
Equally on X and the auctioneer
d)
None of the above.
|
|
Mrinalini Iyer answered |
Answer:
The loss will fall on the auctioneer.
Explanation:
There are certain rules and regulations that need to be followed during an auction sale. The auctioneer is responsible for the items that are being sold and needs to take reasonable care of the items until they are delivered to the buyer. In this case, the auctioneer failed to take reasonable care of the flower vase which resulted in it breaking into several pieces.
Therefore, the loss will fall on the auctioneer as they are responsible for the item until it is delivered to the buyer. The bidder, X, is not responsible for the loss as they had made the highest bid and were not in control of the item at the time of the accident.
It is important for auctioneers to take reasonable care of the items that are being sold and to ensure that they are not damaged during the sale. If any damage occurs, the auctioneer is responsible for compensating the buyer for the loss.
The loss will fall on the auctioneer.
Explanation:
There are certain rules and regulations that need to be followed during an auction sale. The auctioneer is responsible for the items that are being sold and needs to take reasonable care of the items until they are delivered to the buyer. In this case, the auctioneer failed to take reasonable care of the flower vase which resulted in it breaking into several pieces.
Therefore, the loss will fall on the auctioneer as they are responsible for the item until it is delivered to the buyer. The bidder, X, is not responsible for the loss as they had made the highest bid and were not in control of the item at the time of the accident.
It is important for auctioneers to take reasonable care of the items that are being sold and to ensure that they are not damaged during the sale. If any damage occurs, the auctioneer is responsible for compensating the buyer for the loss.
Unpaid Seller has a right of _________when the goods have not been delivered to the buyer or his agent- a)Lien
- b)Stoppage in transit
- c)Resale
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
Unpaid Seller has a right of _________when the goods have not been delivered to the buyer or his agent
a)
Lien
b)
Stoppage in transit
c)
Resale
d)
None of the above
|
|
Tanvi Pillai answered |
The correct answer is option 'A': Lien.
Explanation:
When a seller has not received payment for the goods and the goods have not been delivered to the buyer or his agent, the unpaid seller has a right of lien. Let's understand what this means:
Lien:
A lien is a legal right that allows a person to retain possession of someone else's property until a debt owed by that person is paid off. In the context of an unpaid seller, a lien allows the seller to retain possession of the goods until the buyer makes payment for them.
The right of lien is a powerful tool for the seller to secure payment for the goods. By retaining possession of the goods, the seller effectively prevents the buyer from using or selling the goods until the payment is made.
The right of lien can be exercised in two situations:
1. Goods in possession of the seller:
If the seller has physical possession of the goods, the seller can retain possession until payment is made. This means that the seller can refuse to deliver the goods until the buyer pays the outstanding amount.
2. Goods in transit:
If the goods are in transit, meaning they have been dispatched by the seller but have not yet reached the buyer, the seller can exercise the right of stoppage in transit. This allows the seller to stop the goods in transit and regain possession of them until payment is made.
It is important to note that the right of lien is only available to the unpaid seller. Once payment is made, the seller loses the right to retain possession of the goods and must deliver them to the buyer.
In conclusion, the correct answer is option 'A': Lien. This right allows the unpaid seller to retain possession of the goods until payment is made by the buyer.
Explanation:
When a seller has not received payment for the goods and the goods have not been delivered to the buyer or his agent, the unpaid seller has a right of lien. Let's understand what this means:
Lien:
A lien is a legal right that allows a person to retain possession of someone else's property until a debt owed by that person is paid off. In the context of an unpaid seller, a lien allows the seller to retain possession of the goods until the buyer makes payment for them.
The right of lien is a powerful tool for the seller to secure payment for the goods. By retaining possession of the goods, the seller effectively prevents the buyer from using or selling the goods until the payment is made.
The right of lien can be exercised in two situations:
1. Goods in possession of the seller:
If the seller has physical possession of the goods, the seller can retain possession until payment is made. This means that the seller can refuse to deliver the goods until the buyer pays the outstanding amount.
2. Goods in transit:
If the goods are in transit, meaning they have been dispatched by the seller but have not yet reached the buyer, the seller can exercise the right of stoppage in transit. This allows the seller to stop the goods in transit and regain possession of them until payment is made.
It is important to note that the right of lien is only available to the unpaid seller. Once payment is made, the seller loses the right to retain possession of the goods and must deliver them to the buyer.
In conclusion, the correct answer is option 'A': Lien. This right allows the unpaid seller to retain possession of the goods until payment is made by the buyer.
If in an Auction Sale, Auctioneer mistakenly falls the hammer for price less than the Reserve price, Auctioneer is: - a)Bound by auction
- b)Not bound by auction
- c)Both (a) & (b)
- d)Liable for damages
Correct answer is option 'B'. Can you explain this answer?
If in an Auction Sale, Auctioneer mistakenly falls the hammer for price less than the Reserve price, Auctioneer is:
a)
Bound by auction
b)
Not bound by auction
c)
Both (a) & (b)
d)
Liable for damages
|
Geethasree answered |
Option "b" is correct.....because u/s 65 of sale of goods act, 1930, in case of an auction sale subject to a reserve price, if the highest bid falls short of the reserve price,such a bid is not binding on the auctioneer and the auctioneer may lawfully refuse to accept the same ....even if the auctioneer mistakenly accepts a bid which is below the reserve price , such acceptance will not be valid and the auctioneer cannot be compelled to perform the contract of sale. therefore, auctioneer will not be bound by the auction
Unpaid seller can sell the goods if:- a)They are of perishable nature
- b)They are of durable nature
- c)When he gives notice to buyer
- d)Both (a) and
Correct answer is option 'D'. Can you explain this answer?
Unpaid seller can sell the goods if:
a)
They are of perishable nature
b)
They are of durable nature
c)
When he gives notice to buyer
d)
Both (a) and
|
Pragati Shah answered |
The unpaid seller can re-sell the goods if the goods are of a perishable nature. He can also make a resale of the goods if he has given notice to the buyer of his intention to re-sell and the buyer has not within a reasonable time paid the price
P sells a car by auction to Q, who is the highest bidder. Q offers to pay for the car by a cheque and he is allowed to do so provided he signs a document stating that the property in the car would not pass to him until the amount of the cheque has been credited to the seller’s account. The cheque is subsequently dishonoured. P asks Q to return back the car as he has not become the owner of the car because the cheque given by him has been dishonoured. Decide:- a)Yes, P’s contention is justified
- b)No, P’s contention is not justified
- c)Car should be re-auctioned by Q
- d)None of these
Correct answer is 'B'. Can you explain this answer?
P sells a car by auction to Q, who is the highest bidder. Q offers to pay for the car by a cheque and he is allowed to do so provided he signs a document stating that the property in the car would not pass to him until the amount of the cheque has been credited to the seller’s account. The cheque is subsequently dishonoured. P asks Q to return back the car as he has not become the owner of the car because the cheque given by him has been dishonoured. Decide:
a)
Yes, P’s contention is justified
b)
No, P’s contention is not justified
c)
Car should be re-auctioned by Q
d)
None of these
|
Shweta Sharma answered |
As ownership is transfered
In pretended bidding sale is : - a)Voidable at the option of the buyer
- b)Voidable at the option of the seller
- c)It is legal and nothing can be done
- d)Buyer can ask for the goods at discounted rate
Correct answer is option 'A'. Can you explain this answer?
In pretended bidding sale is :
a)
Voidable at the option of the buyer
b)
Voidable at the option of the seller
c)
It is legal and nothing can be done
d)
Buyer can ask for the goods at discounted rate
|
Rajat Patel answered |
Rules regarding Auction Sale:
1. If the goods are put up for sale in an auction in lots, each lot is deemed to be a subject of a separate contract of sale.
2. When the auctioneer announces its completion by the fall of the hammer or in some other customary manner, the sale is considered complete. Until such an announcement, any bidder may revoke his bid.
3. In an Auction sale, a right to sell may be reserved expressly by the seller. In such a case, the seller or any one person on his behalf may bid at the auction.
4. Where a sale is not notified to be subject to a right to bid on behalf of the seller, it is not lawful for the seller to bid himself or to employ any person to bid at such a sale.
5. The sale may be notified to be subject to a ‘reserve‘ or ‘upset‘ price. It is a price below which the auctioneer will not sell in the Auction.
6. In an Auction sale, if the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the buyer (he may avoid it).
7. Sometimes, a group of persons may form a combination to prevent competition among themselves in an auction. Only one of them may actually bid and they may share the benefits later privately. Such a combination is called a ‘knock out‘ and is not illegal. But if the intention of the parties is to defraud a third party, the knock out is illegal.
When the goods are sold on credit and credit period is not expired, the seller of goods is:- a)Called unpaid seller
- b)Is not the seller at all
- c)Not called an unpaid seller
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
When the goods are sold on credit and credit period is not expired, the seller of goods is:
a)
Called unpaid seller
b)
Is not the seller at all
c)
Not called an unpaid seller
d)
None of the above
|
|
Janhavi Basu answered |
Unpaid Seller and Credit Sales
Unpaid seller is a term used to describe a seller who has not received payment for the goods sold to the buyer. However, when goods are sold on credit and the credit period has not expired, the seller of the goods is not called an unpaid seller.
Explanation
When goods are sold on credit, the seller agrees to give the buyer a certain period of time to pay for the goods. During this period, the seller is not considered an unpaid seller because the payment is not yet due. The seller has simply extended credit to the buyer.
Once the credit period has expired and the buyer has not paid for the goods, the seller becomes an unpaid seller. At this point, the seller may exercise certain rights such as retaining possession of the goods or reselling them to recover the unpaid amount.
Conclusion
In conclusion, the seller of goods sold on credit and credit period not expired is not called an unpaid seller. The seller becomes an unpaid seller only when the credit period has expired and the buyer has not paid for the goods.
Unpaid seller is a term used to describe a seller who has not received payment for the goods sold to the buyer. However, when goods are sold on credit and the credit period has not expired, the seller of the goods is not called an unpaid seller.
Explanation
When goods are sold on credit, the seller agrees to give the buyer a certain period of time to pay for the goods. During this period, the seller is not considered an unpaid seller because the payment is not yet due. The seller has simply extended credit to the buyer.
Once the credit period has expired and the buyer has not paid for the goods, the seller becomes an unpaid seller. At this point, the seller may exercise certain rights such as retaining possession of the goods or reselling them to recover the unpaid amount.
Conclusion
In conclusion, the seller of goods sold on credit and credit period not expired is not called an unpaid seller. The seller becomes an unpaid seller only when the credit period has expired and the buyer has not paid for the goods.
An auction sale is completed on __________:- a)Delivery to the carrier
- b)Delivery to the buyer
- c)Fall of hammer
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
An auction sale is completed on __________:
a)
Delivery to the carrier
b)
Delivery to the buyer
c)
Fall of hammer
d)
None of the above
|
Aman Chaudhary answered |
Completion of an Auction Sale
Auction sales are a popular method of selling goods and assets. They involve the public sale of goods or assets to the highest bidder. The completion of an auction sale involves the finalization of the transaction and the transfer of ownership from the seller to the buyer.
Fall of Hammer
The completion of an auction sale is marked by the fall of the hammer. When the auctioneer brings down the hammer, it signals the end of the bidding process and the acceptance of the highest bid. The fall of the hammer signifies that the buyer and seller have entered into a legally binding contract, and the buyer is obligated to pay for the item and take possession of it.
Delivery to the Buyer
After the fall of the hammer, the buyer is required to pay the full amount of the bid price. Once payment is received, the auctioneer will issue a receipt and the buyer will take possession of the item. The seller is responsible for delivering the item to the buyer in the condition that it was described in the auction catalog. If the item is damaged or not as described, the buyer may have the right to cancel the sale or negotiate a lower price.
Conclusion
In conclusion, the completion of an auction sale is marked by the fall of the hammer. Once the highest bid is accepted, the buyer is required to pay the full amount, and the seller is responsible for delivering the item in the condition that it was described. The completion of an auction sale is a legally binding transaction, and both parties are obligated to fulfill their obligations under the contract.
Auction sales are a popular method of selling goods and assets. They involve the public sale of goods or assets to the highest bidder. The completion of an auction sale involves the finalization of the transaction and the transfer of ownership from the seller to the buyer.
Fall of Hammer
The completion of an auction sale is marked by the fall of the hammer. When the auctioneer brings down the hammer, it signals the end of the bidding process and the acceptance of the highest bid. The fall of the hammer signifies that the buyer and seller have entered into a legally binding contract, and the buyer is obligated to pay for the item and take possession of it.
Delivery to the Buyer
After the fall of the hammer, the buyer is required to pay the full amount of the bid price. Once payment is received, the auctioneer will issue a receipt and the buyer will take possession of the item. The seller is responsible for delivering the item to the buyer in the condition that it was described in the auction catalog. If the item is damaged or not as described, the buyer may have the right to cancel the sale or negotiate a lower price.
Conclusion
In conclusion, the completion of an auction sale is marked by the fall of the hammer. Once the highest bid is accepted, the buyer is required to pay the full amount, and the seller is responsible for delivering the item in the condition that it was described. The completion of an auction sale is a legally binding transaction, and both parties are obligated to fulfill their obligations under the contract.
Right of general lien cannot be exercised by - a)Factor
- b)Banker
- c)Auctioneer
- d)All of theses.
Correct answer is option 'C'. Can you explain this answer?
Right of general lien cannot be exercised by
a)
Factor
b)
Banker
c)
Auctioneer
d)
All of theses.
|
Nandini Iyer answered |
A particular lien is so called because it confers the right to retain the goods in connection with which a particular debt arose, whereas a general lien confers a right to retain goods, not only in respect of the debt incurred in connection with them, but also in respect of the general balance due by the owner of the ..auctioneer
An auctioneer is a person who manages an auction, or a public sale at which people can bid on items. It's exciting to win the bidding at an auction and hear the auctioneer shout, "Sold!"
It's the job of an auctioneer to organize the goods for sale at an auction, as well as to oversee the bidding, often encouraging bidders to compete with each other to drive the price up. Some auctioneers call out items and prices in a distinctive, rapid, sing-song voice. Auctioneer comes from auction, which has a Latin root: auctionem, "increasing sale or public sale," from augere, "to increase."
Right to bid may be reserved: - a)Expressly by seller
- b)Expressly by buyer
- c)Expressly by auctioneer
- d)All of these
Correct answer is option 'A'. Can you explain this answer?
Right to bid may be reserved:
a)
Expressly by seller
b)
Expressly by buyer
c)
Expressly by auctioneer
d)
All of these
|
|
Alok Mehta answered |
A right to bid may be reserved expressly by or on behalf of the seller and, where such right is expressly so reserved, but not Otherwise, the seller or any one person on his behalf, may bid at the aucton This right is granted to the seller so as to enable him safeguard his interests in case the bidders agree not to outbid each other.
Unpaid seller has which rights against the buyer personally: - a)To sue for the price
- b)To sue for damages
- c)To sue for interest
- d)All of these
Correct answer is option 'D'. Can you explain this answer?
Unpaid seller has which rights against the buyer personally:
a)
To sue for the price
b)
To sue for damages
c)
To sue for interest
d)
All of these
|
Anagha Nataraj answered |
Section 55, 56 and 60,61 of Chapter 2 - Unit 4 in Law book.
The above directly answers your question.
The above directly answers your question.
The minimum price below which the auctioneer will not sell the goods is called:- a)Stock price
- b)Reserve price
- c)Upset Price
- d)Either (b) or (c)
Correct answer is option 'D'. Can you explain this answer?
The minimum price below which the auctioneer will not sell the goods is called:
a)
Stock price
b)
Reserve price
c)
Upset Price
d)
Either (b) or (c)
|
|
Hrishikesh Pillai answered |
Explanation:
The correct answer is option 'D', which states that the minimum price below which the auctioneer will not sell the goods is either the reserve price or the upset price. Let's understand what these terms mean:
1. Reserve Price:
The reserve price is the minimum price set by the seller or auctioneer below which they are not willing to sell the goods. It acts as a safety net for the seller, ensuring that the goods are not sold for a price lower than desired. If the bidding does not reach the reserve price, the auctioneer has the right to withdraw the goods from the auction.
2. Upset Price:
The upset price is similar to the reserve price. It is the minimum price at which the auctioneer is willing to sell the goods. If the bidding does not reach the upset price, the auctioneer will not sell the goods. The upset price is often used in government or public auctions to ensure that the goods are sold at a fair market value.
Example:
Let's say there is an auction for a painting. The auctioneer sets a reserve price of $10,000, which means that they will not sell the painting if the bidding does not reach $10,000. If the highest bid is $9,000, the auctioneer will not sell the painting.
Similarly, if there is a government auction for a piece of land, the upset price may be set at $1 million. If the bidding does not reach $1 million, the auctioneer will not sell the land.
In both cases, the reserve price and the upset price act as a safeguard for the seller or auctioneer to ensure that the goods are not sold for a price lower than their expectations.
Therefore, the correct answer is option 'D', as the minimum price below which the auctioneer will not sell the goods can be either the reserve price or the upset price.
The correct answer is option 'D', which states that the minimum price below which the auctioneer will not sell the goods is either the reserve price or the upset price. Let's understand what these terms mean:
1. Reserve Price:
The reserve price is the minimum price set by the seller or auctioneer below which they are not willing to sell the goods. It acts as a safety net for the seller, ensuring that the goods are not sold for a price lower than desired. If the bidding does not reach the reserve price, the auctioneer has the right to withdraw the goods from the auction.
2. Upset Price:
The upset price is similar to the reserve price. It is the minimum price at which the auctioneer is willing to sell the goods. If the bidding does not reach the upset price, the auctioneer will not sell the goods. The upset price is often used in government or public auctions to ensure that the goods are sold at a fair market value.
Example:
Let's say there is an auction for a painting. The auctioneer sets a reserve price of $10,000, which means that they will not sell the painting if the bidding does not reach $10,000. If the highest bid is $9,000, the auctioneer will not sell the painting.
Similarly, if there is a government auction for a piece of land, the upset price may be set at $1 million. If the bidding does not reach $1 million, the auctioneer will not sell the land.
In both cases, the reserve price and the upset price act as a safeguard for the seller or auctioneer to ensure that the goods are not sold for a price lower than their expectations.
Therefore, the correct answer is option 'D', as the minimum price below which the auctioneer will not sell the goods can be either the reserve price or the upset price.
If no notice of resale is given to the buyer, the unpaid seller is not entitled: - a)To retain surplus if any under resale
- b)To recover any loss on resale of the goods
- c)Both (a) and (b)
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
If no notice of resale is given to the buyer, the unpaid seller is not entitled:
a)
To retain surplus if any under resale
b)
To recover any loss on resale of the goods
c)
Both (a) and (b)
d)
None of the above
|
Ritika Iyer answered |
Explanation:
When a buyer purchases goods from a seller on credit, the seller has certain rights if the buyer defaults on payment. One such right is the right to resell the goods in order to recover the outstanding amount. However, in order for the seller to exercise this right, they must provide notice of the resale to the buyer. If no notice of resale is given, the unpaid seller is not entitled to retain surplus or recover any loss on resale.
Reasons:
1. Retaining Surplus: When a seller resells the goods, there is a possibility that the resale price may be higher than the outstanding amount owed by the buyer. In such a case, the seller is entitled to retain the surplus amount. However, if no notice of resale is given, the seller cannot claim this surplus amount.
2. Recovering Loss: On the other hand, if the resale price is lower than the outstanding amount, the seller may incur a loss. In such a situation, the seller is entitled to recover the loss from the buyer. However, if no notice of resale is given, the seller cannot claim this loss from the buyer.
Implications:
By not giving notice of resale to the buyer, the unpaid seller effectively waives their right to retain surplus or recover any loss on resale. This means that regardless of the resale price, the seller cannot benefit from any surplus amount or recover any loss incurred.
Conclusion:
In conclusion, if no notice of resale is given to the buyer, the unpaid seller is not entitled to retain surplus or recover any loss on resale of the goods. It is important for sellers to provide notice of resale in order to protect their rights and ensure that they can recover any outstanding amounts owed to them.
When a buyer purchases goods from a seller on credit, the seller has certain rights if the buyer defaults on payment. One such right is the right to resell the goods in order to recover the outstanding amount. However, in order for the seller to exercise this right, they must provide notice of the resale to the buyer. If no notice of resale is given, the unpaid seller is not entitled to retain surplus or recover any loss on resale.
Reasons:
1. Retaining Surplus: When a seller resells the goods, there is a possibility that the resale price may be higher than the outstanding amount owed by the buyer. In such a case, the seller is entitled to retain the surplus amount. However, if no notice of resale is given, the seller cannot claim this surplus amount.
2. Recovering Loss: On the other hand, if the resale price is lower than the outstanding amount, the seller may incur a loss. In such a situation, the seller is entitled to recover the loss from the buyer. However, if no notice of resale is given, the seller cannot claim this loss from the buyer.
Implications:
By not giving notice of resale to the buyer, the unpaid seller effectively waives their right to retain surplus or recover any loss on resale. This means that regardless of the resale price, the seller cannot benefit from any surplus amount or recover any loss incurred.
Conclusion:
In conclusion, if no notice of resale is given to the buyer, the unpaid seller is not entitled to retain surplus or recover any loss on resale of the goods. It is important for sellers to provide notice of resale in order to protect their rights and ensure that they can recover any outstanding amounts owed to them.
Jus in personam means; right against:- a)Specific person
- b)Specific goods
- c)Public at large
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
Jus in personam means; right against:
a)
Specific person
b)
Specific goods
c)
Public at large
d)
None of these
|
|
Aarya Sharma answered |
Jus in personam refers to a legal right or claim against a specific person. This right is enforceable only against the particular individual or entity who is the subject of the claim. In contrast, jus in rem refers to a right or claim against a specific thing or property, which is enforceable against anyone who possesses or interacts with that property.
Explanation:
• Meaning of Jus in Personam: Jus in personam is a Latin term that refers to a legal right or claim against a specific person. This right is enforceable only against the particular individual or entity who is the subject of the claim. It is a personal right that creates an obligation on a particular individual or entity.
• Enforcement of Jus in personam: The enforcement of jus in personam claims is limited to the parties involved in the case. This means that the right is enforceable only against the party who is the subject of the claim. The legal system has the power to enforce jus in personam claims by imposing penalties or fines on the subject of the claim.
• Distinction between Jus in personam and Jus in rem: The main difference between jus in personam and jus in rem is the subject of the right. Jus in personam refers to a right against a specific person, while jus in rem refers to a right against a specific thing or property. Jus in rem is enforceable against anyone who possesses or interacts with that property.
• Examples of Jus in personam: Examples of jus in personam include contractual rights, such as the right to receive payment for services rendered, and tort claims, such as the right to seek damages for injuries caused by another person's negligence.
Conclusion:
In conclusion, jus in personam is a legal right or claim against a specific person. It is a personal right that creates an obligation on a particular individual or entity. The enforcement of jus in personam claims is limited to the parties involved in the case. Jus in personam is distinct from jus in rem, which refers to a right against a specific thing or property.
Explanation:
• Meaning of Jus in Personam: Jus in personam is a Latin term that refers to a legal right or claim against a specific person. This right is enforceable only against the particular individual or entity who is the subject of the claim. It is a personal right that creates an obligation on a particular individual or entity.
• Enforcement of Jus in personam: The enforcement of jus in personam claims is limited to the parties involved in the case. This means that the right is enforceable only against the party who is the subject of the claim. The legal system has the power to enforce jus in personam claims by imposing penalties or fines on the subject of the claim.
• Distinction between Jus in personam and Jus in rem: The main difference between jus in personam and jus in rem is the subject of the right. Jus in personam refers to a right against a specific person, while jus in rem refers to a right against a specific thing or property. Jus in rem is enforceable against anyone who possesses or interacts with that property.
• Examples of Jus in personam: Examples of jus in personam include contractual rights, such as the right to receive payment for services rendered, and tort claims, such as the right to seek damages for injuries caused by another person's negligence.
Conclusion:
In conclusion, jus in personam is a legal right or claim against a specific person. It is a personal right that creates an obligation on a particular individual or entity. The enforcement of jus in personam claims is limited to the parties involved in the case. Jus in personam is distinct from jus in rem, which refers to a right against a specific thing or property.
Rights of the seller against the buyer personally are called ______- a)Rights against goods
- b)Rights against appropriation
- c)Rights in personam
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
Rights of the seller against the buyer personally are called ______
a)
Rights against goods
b)
Rights against appropriation
c)
Rights in personam
d)
None of the above
|
|
Hrishikesh Pillai answered |
Rights of the seller against the buyer personally are called Rights in Personam.
Rights in Personam refer to the rights that a seller has against the buyer personally, rather than against the goods or any other specific property. These rights arise from the contractual relationship between the seller and the buyer. When the buyer fails to fulfill their obligations under the contract, the seller can exercise their rights in personam to seek legal remedies.
Key Points:
- Rights in Personam are the rights that a seller has against the buyer personally.
- These rights arise from the contractual relationship between the seller and the buyer.
- When the buyer fails to fulfill their obligations under the contract, the seller can exercise their rights in personam.
Types of Rights in Personam:
1. Right to Payment: The seller has the right to receive payment from the buyer for the goods sold. This includes the payment of the agreed-upon price, any additional charges, and any interest or penalties for late payment.
2. Right to Damages: If the buyer breaches the contract, the seller has the right to claim damages. Damages are a monetary compensation to cover any losses or harm suffered by the seller due to the buyer's breach of contract.
3. Right to Specific Performance: In certain situations, the seller may seek a court order requiring the buyer to fulfill their obligations under the contract. This is known as specific performance and is a remedy available when monetary compensation is not sufficient to remedy the breach.
4. Right to Rescission: If the buyer has committed a serious breach of contract, the seller may have the right to rescind the contract. Rescission cancels the contract and releases both parties from their obligations under it.
5. Right to Stoppage in Transit: If the buyer becomes insolvent or fails to pay for the goods, the seller may have the right to stop the delivery of the goods in transit. This right allows the seller to regain possession of the goods and prevent their delivery to the buyer.
Conclusion:
Rights in Personam are crucial for sellers as they provide legal remedies against the buyer personally when they fail to fulfill their obligations under the contract. These rights include the right to payment, damages, specific performance, rescission, and stoppage in transit. Sellers should be aware of these rights and seek legal advice when necessary to protect their interests.
Rights in Personam refer to the rights that a seller has against the buyer personally, rather than against the goods or any other specific property. These rights arise from the contractual relationship between the seller and the buyer. When the buyer fails to fulfill their obligations under the contract, the seller can exercise their rights in personam to seek legal remedies.
Key Points:
- Rights in Personam are the rights that a seller has against the buyer personally.
- These rights arise from the contractual relationship between the seller and the buyer.
- When the buyer fails to fulfill their obligations under the contract, the seller can exercise their rights in personam.
Types of Rights in Personam:
1. Right to Payment: The seller has the right to receive payment from the buyer for the goods sold. This includes the payment of the agreed-upon price, any additional charges, and any interest or penalties for late payment.
2. Right to Damages: If the buyer breaches the contract, the seller has the right to claim damages. Damages are a monetary compensation to cover any losses or harm suffered by the seller due to the buyer's breach of contract.
3. Right to Specific Performance: In certain situations, the seller may seek a court order requiring the buyer to fulfill their obligations under the contract. This is known as specific performance and is a remedy available when monetary compensation is not sufficient to remedy the breach.
4. Right to Rescission: If the buyer has committed a serious breach of contract, the seller may have the right to rescind the contract. Rescission cancels the contract and releases both parties from their obligations under it.
5. Right to Stoppage in Transit: If the buyer becomes insolvent or fails to pay for the goods, the seller may have the right to stop the delivery of the goods in transit. This right allows the seller to regain possession of the goods and prevent their delivery to the buyer.
Conclusion:
Rights in Personam are crucial for sellers as they provide legal remedies against the buyer personally when they fail to fulfill their obligations under the contract. These rights include the right to payment, damages, specific performance, rescission, and stoppage in transit. Sellers should be aware of these rights and seek legal advice when necessary to protect their interests.
The minimum price below which the auctioneer will not sell the goods. - a)Stock price
- b)Reserve price
- c)Upset Price
- d)Either (b) or (c)
Correct answer is option 'D'. Can you explain this answer?
The minimum price below which the auctioneer will not sell the goods.
a)
Stock price
b)
Reserve price
c)
Upset Price
d)
Either (b) or (c)
|
|
Niharika Joshi answered |
Reserve Price vs Upset Price:
The correct answer to the question is option D, which states that the minimum price below which the auctioneer will not sell the goods is either the reserve price or the upset price. Let's understand the difference between these two terms:
Reserve Price:
- The reserve price is the minimum price set by the seller before the auction starts.
- The auctioneer cannot sell the item below this price.
- If the bidding does not reach the reserve price, the item will not be sold.
- It is a way for the seller to ensure that they do not sell the item for less than they are willing to accept.
Upset Price:
- The upset price is the minimum price at which the auctioneer will start the bidding.
- It is also known as the opening bid or starting bid.
- If no bids are received at or above the upset price, the auctioneer may choose not to sell the item.
- The upset price helps to set the tone for the auction and encourage potential buyers to start bidding.
Conclusion:
In summary, the reserve price and upset price are both important factors in an auction setting. The reserve price protects the seller's interests by setting a minimum price for the sale, while the upset price initiates the bidding process and determines the starting point for the auction. Both prices play a crucial role in determining the final selling price of the goods at an auction.
The correct answer to the question is option D, which states that the minimum price below which the auctioneer will not sell the goods is either the reserve price or the upset price. Let's understand the difference between these two terms:
Reserve Price:
- The reserve price is the minimum price set by the seller before the auction starts.
- The auctioneer cannot sell the item below this price.
- If the bidding does not reach the reserve price, the item will not be sold.
- It is a way for the seller to ensure that they do not sell the item for less than they are willing to accept.
Upset Price:
- The upset price is the minimum price at which the auctioneer will start the bidding.
- It is also known as the opening bid or starting bid.
- If no bids are received at or above the upset price, the auctioneer may choose not to sell the item.
- The upset price helps to set the tone for the auction and encourage potential buyers to start bidding.
Conclusion:
In summary, the reserve price and upset price are both important factors in an auction setting. The reserve price protects the seller's interests by setting a minimum price for the sale, while the upset price initiates the bidding process and determines the starting point for the auction. Both prices play a crucial role in determining the final selling price of the goods at an auction.
Under the Sale of Goods Act, 1932, the essence of Right of Lien is to; - a)Retain the goods
- b)Deliver the goods
- c)Buy the goods
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
Under the Sale of Goods Act, 1932, the essence of Right of Lien is to;
a)
Retain the goods
b)
Deliver the goods
c)
Buy the goods
d)
None of these
|
Priyal Gupta answered |
This is so because the right of lien could be exercised only when the owner is in possession of the goods. therefore, its essence is retaining of the goods.
Auction sale comes to an end when. - a)Delivery of goods
- b)Payment of cash
- c)Fall of hammer
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
Auction sale comes to an end when.
a)
Delivery of goods
b)
Payment of cash
c)
Fall of hammer
d)
None of the above
|
|
Ruchi Mishra answered |
Auction sales are a popular method of selling goods and assets to the highest bidder. They are commonly used for selling items such as artwork, antiques, real estate, and various other types of property. The process of an auction sale involves several key steps, and the end of the auction is determined by the fall of the hammer.
Explanation:
The fall of the hammer refers to the moment when the auctioneer brings down the gavel or hammer to indicate that the bidding has ended. This action signifies the acceptance of the highest bid and the sale of the item to the winning bidder.
The fall of the hammer is a crucial moment in an auction sale as it determines the finality of the transaction. Once the hammer falls, the highest bidder is legally obliged to purchase the item at the price they bid. Similarly, the seller is obligated to sell the item to the winning bidder.
The fall of the hammer signifies the end of the bidding process and the beginning of the post-auction procedures. At this point, the auctioneer will announce the winning bidder and record their details for future reference.
After the fall of the hammer, the winning bidder is required to provide payment for the item they have won. The payment can be made in various forms, such as cash, check, or electronic transfer, depending on the terms and conditions of the auction.
Once the payment is received, the auctioneer will arrange for the delivery of the goods to the winning bidder. The delivery of goods may involve shipping, transportation, or collection arrangements, depending on the nature of the item and the agreement between the buyer and seller.
In conclusion, the auction sale comes to an end with the fall of the hammer. This moment signifies the acceptance of the highest bid and the beginning of the post-auction procedures, including payment and the delivery of goods.
Explanation:
The fall of the hammer refers to the moment when the auctioneer brings down the gavel or hammer to indicate that the bidding has ended. This action signifies the acceptance of the highest bid and the sale of the item to the winning bidder.
The fall of the hammer is a crucial moment in an auction sale as it determines the finality of the transaction. Once the hammer falls, the highest bidder is legally obliged to purchase the item at the price they bid. Similarly, the seller is obligated to sell the item to the winning bidder.
The fall of the hammer signifies the end of the bidding process and the beginning of the post-auction procedures. At this point, the auctioneer will announce the winning bidder and record their details for future reference.
After the fall of the hammer, the winning bidder is required to provide payment for the item they have won. The payment can be made in various forms, such as cash, check, or electronic transfer, depending on the terms and conditions of the auction.
Once the payment is received, the auctioneer will arrange for the delivery of the goods to the winning bidder. The delivery of goods may involve shipping, transportation, or collection arrangements, depending on the nature of the item and the agreement between the buyer and seller.
In conclusion, the auction sale comes to an end with the fall of the hammer. This moment signifies the acceptance of the highest bid and the beginning of the post-auction procedures, including payment and the delivery of goods.
Even if a substantial portion of the price is paid and only a small balance is pending, the seller is still regarded as an Unpaid Seller. This statement is :- a)True
- b)Partly true
- c)False
- d)Partly false
Correct answer is option 'A'. Can you explain this answer?
Even if a substantial portion of the price is paid and only a small balance is pending, the seller is still regarded as an Unpaid Seller. This statement is :
a)
True
b)
Partly true
c)
False
d)
Partly false
|
|
Mrinalini Iyer answered |
Explanation:
According to the Sale of Goods Act, 1930, an unpaid seller is defined as a seller who has not received the full payment for the goods sold or who has received a negotiable instrument like a promissory note or a bill of exchange as payment and the instrument has been dishonored.
Unpaid Seller:
An unpaid seller has certain rights against the goods and the buyer. These rights include:
- The right to withhold delivery of the goods until full payment is received
- The right to sue for the price of the goods
- The right of lien over the goods
- The right of stoppage in transit
Partial Payment:
Even if a substantial portion of the price has been paid and only a small balance is pending, the seller is still considered as an unpaid seller. This means that until the full payment is received, the seller retains the rights of an unpaid seller over the goods and the buyer.
Example:
For example, let's say a buyer purchases goods worth $100 from a seller. The buyer makes a partial payment of $90 and still has a balance of $10 pending. Even though the buyer has paid a substantial portion of the price, the seller is still considered as an unpaid seller until the full payment of $100 is received.
Reason:
The reason for considering the seller as an unpaid seller even with partial payment is to protect the rights and interests of the seller. By retaining the rights of an unpaid seller, the seller has recourse in case of non-payment or default by the buyer. This ensures that the seller has the necessary legal remedies to recover the remaining balance and to protect their financial interests.
Conclusion:
Therefore, even if a substantial portion of the price is paid and only a small balance is pending, the seller is still regarded as an unpaid seller until the full payment is received. This is to protect the rights and interests of the seller and to provide legal remedies in case of non-payment or default by the buyer.
When an unpaid seller, who has exercised his right of lien or stoppage in transit, re-sells the goods: - a)The buyer dies not acquires a good title to the goods as against the original buyer
- b)The buyer acquires a good title to the goods as against the original buyer
- c)The seller does not have a right to sell
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
When an unpaid seller, who has exercised his right of lien or stoppage in transit, re-sells the goods:
a)
The buyer dies not acquires a good title to the goods as against the original buyer
b)
The buyer acquires a good title to the goods as against the original buyer
c)
The seller does not have a right to sell
d)
None of the above
|
|
Maheshwar Datta answered |
Explanation:
When an unpaid seller exercises his right of lien or stoppage in transit and re-sells the goods, the buyer acquires a good title to the goods as against the original buyer. This can be explained as follows:
Unpaid seller's right of lien:
The unpaid seller has the right of lien over the goods sold until the full price is paid. This means that the seller can retain the possession of the goods until the buyer pays the full price. The right of lien can be exercised even if the goods are in the possession of the buyer.
Stoppage in transit:
If the buyer has become insolvent, the unpaid seller has the right of stoppage in transit. This means that if the goods are in the possession of a carrier or other bailee, the seller can instruct the carrier or bailee to hold the goods and not deliver them to the buyer until the full price is paid.
Re-sale of goods:
If the buyer does not pay the full price within a reasonable time, the unpaid seller can re-sell the goods. If the seller re-sells the goods, the original buyer loses his right to the goods and the new buyer acquires a good title to the goods. The original buyer cannot claim the goods from the new buyer, even if he pays the full price later.
Conclusion:
In conclusion, when an unpaid seller re-sells the goods after exercising his right of lien or stoppage in transit, the new buyer acquires a good title to the goods as against the original buyer. The original buyer loses his right to the goods and cannot claim them from the new buyer, even if he pays the full price later.
When an unpaid seller exercises his right of lien or stoppage in transit and re-sells the goods, the buyer acquires a good title to the goods as against the original buyer. This can be explained as follows:
Unpaid seller's right of lien:
The unpaid seller has the right of lien over the goods sold until the full price is paid. This means that the seller can retain the possession of the goods until the buyer pays the full price. The right of lien can be exercised even if the goods are in the possession of the buyer.
Stoppage in transit:
If the buyer has become insolvent, the unpaid seller has the right of stoppage in transit. This means that if the goods are in the possession of a carrier or other bailee, the seller can instruct the carrier or bailee to hold the goods and not deliver them to the buyer until the full price is paid.
Re-sale of goods:
If the buyer does not pay the full price within a reasonable time, the unpaid seller can re-sell the goods. If the seller re-sells the goods, the original buyer loses his right to the goods and the new buyer acquires a good title to the goods. The original buyer cannot claim the goods from the new buyer, even if he pays the full price later.
Conclusion:
In conclusion, when an unpaid seller re-sells the goods after exercising his right of lien or stoppage in transit, the new buyer acquires a good title to the goods as against the original buyer. The original buyer loses his right to the goods and cannot claim them from the new buyer, even if he pays the full price later.
Unpaid seller can exercise ________if the buyer has become insolvent- a)Right to Stoppage in transit
- b)Right of lien
- c)Both (a) & (b).
- d)Right to resale
Correct answer is option 'C'. Can you explain this answer?
Unpaid seller can exercise ________if the buyer has become insolvent
a)
Right to Stoppage in transit
b)
Right of lien
c)
Both (a) & (b).
d)
Right to resale
|
Vakil Sasidhar answered |
Ya correct option is c .. if buyer become insolvent he have right to stoppage and lien
Discharge may be:- a)By operation of law
- b)By mutual agreement
- c)By lapse of time
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
Discharge may be:
a)
By operation of law
b)
By mutual agreement
c)
By lapse of time
d)
All of the above
|
Jayant Mishra answered |
Discharge refers to end of contractual relationship between the parties. The agreement stops to work i.e. at the point when the rights and commitments under the agreement end. As per Sections 73-75 of the Contracts Act, an agreement may be released in a few modes. They are as per the following:-
1. Discharge by execution
2. Discharge by Mutual agreement
3. Discharge by Impossibility
4. Discharge by Operation of Law
5. Discharge by Lapse of time and
6. Discharge by Breach of the contract
When the buyer gives price of the good and seller becomes insolvent then what remedy is available with the buyer against the goods and seller?- a)Only ratable dividend in respect of price.
- b)Goods if property in goods has passed to buyer
- c)No claim on goods
- d)Either (a) or (b)
Correct answer is option 'D'. Can you explain this answer?
When the buyer gives price of the good and seller becomes insolvent then what remedy is available with the buyer against the goods and seller?
a)
Only ratable dividend in respect of price.
b)
Goods if property in goods has passed to buyer
c)
No claim on goods
d)
Either (a) or (b)
|
|
Arka Kaur answered |
Remedy Available to the Buyer when the Seller becomes Insolvent
When a buyer gives the price of the goods and the seller becomes insolvent, the buyer may have certain remedies available to recover their payment or seek compensation. The appropriate remedy in such a situation depends on various factors, including whether the property in the goods has passed to the buyer or not.
1. Ratable Dividend in Respect of Price:
If the property in the goods has not passed to the buyer, the buyer's remedy is typically limited to receiving a ratable dividend in respect of the price they paid. This means that the buyer may be entitled to a proportionate share of the total amount available to be distributed among the creditors of the insolvent seller. However, the buyer will not have any specific claim on the goods.
2. Goods if Property in Goods has Passed to Buyer:
If the property in the goods has passed to the buyer before the seller becomes insolvent, the buyer may have a stronger remedy available. In such cases, the buyer may be able to claim ownership of the goods and seek their recovery. This means that the buyer can assert their right to the goods and demand their delivery or compensation for the loss suffered.
3. No Claim on Goods:
If the property in the goods has not passed to the buyer and the buyer has not paid the price, they may not have any claim on the goods. In such cases, the buyer's remedy is limited to recovering the amount they paid as a ratable dividend, if available.
4. Either (a) or (b):
The correct answer, as stated in option (d), is that the buyer may have either the remedy of receiving a ratable dividend in respect of the price or the remedy of claiming ownership of the goods if the property has passed to the buyer. The specific remedy available to the buyer depends on the circumstances of the case, including the timing of the insolvency and the passing of the property in the goods.
In conclusion, when the seller becomes insolvent after the buyer has given the price of the goods, the buyer may have the remedy of receiving a ratable dividend in respect of the price or claiming ownership of the goods if the property has passed to the buyer. The appropriate remedy depends on whether the property in the goods has passed to the buyer or not.
When a buyer gives the price of the goods and the seller becomes insolvent, the buyer may have certain remedies available to recover their payment or seek compensation. The appropriate remedy in such a situation depends on various factors, including whether the property in the goods has passed to the buyer or not.
1. Ratable Dividend in Respect of Price:
If the property in the goods has not passed to the buyer, the buyer's remedy is typically limited to receiving a ratable dividend in respect of the price they paid. This means that the buyer may be entitled to a proportionate share of the total amount available to be distributed among the creditors of the insolvent seller. However, the buyer will not have any specific claim on the goods.
2. Goods if Property in Goods has Passed to Buyer:
If the property in the goods has passed to the buyer before the seller becomes insolvent, the buyer may have a stronger remedy available. In such cases, the buyer may be able to claim ownership of the goods and seek their recovery. This means that the buyer can assert their right to the goods and demand their delivery or compensation for the loss suffered.
3. No Claim on Goods:
If the property in the goods has not passed to the buyer and the buyer has not paid the price, they may not have any claim on the goods. In such cases, the buyer's remedy is limited to recovering the amount they paid as a ratable dividend, if available.
4. Either (a) or (b):
The correct answer, as stated in option (d), is that the buyer may have either the remedy of receiving a ratable dividend in respect of the price or the remedy of claiming ownership of the goods if the property has passed to the buyer. The specific remedy available to the buyer depends on the circumstances of the case, including the timing of the insolvency and the passing of the property in the goods.
In conclusion, when the seller becomes insolvent after the buyer has given the price of the goods, the buyer may have the remedy of receiving a ratable dividend in respect of the price or claiming ownership of the goods if the property has passed to the buyer. The appropriate remedy depends on whether the property in the goods has passed to the buyer or not.
Unpaid Seller has a right of _________when the goods have not been delivered to the buyer or his agent- a)Lien
- b)Stoppage in transit
- c)Resale
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
Unpaid Seller has a right of _________when the goods have not been delivered to the buyer or his agent
a)
Lien
b)
Stoppage in transit
c)
Resale
d)
None of the above
|
|
Akshay Das answered |
Unpaid Seller's Rights
In the context of sales, an unpaid seller has specific rights when the buyer has not fulfilled their payment obligations. One of these rights is particularly significant when goods have not yet been delivered.
Right of Lien
- The right of lien allows an unpaid seller to retain possession of the goods until payment is made. This right is applicable when the seller still has control over the goods, which means they have not been delivered to the buyer or their agent.
Key Aspects of Lien
- Possession: The seller must retain possession of the goods to exercise this right. If the goods have been delivered, the seller loses this right.
- Unpaid Goods: This right only applies to goods that remain unpaid for. If payment has been made or if the goods have been accepted by the buyer, this right does not hold.
Comparison with Other Rights
- Stoppage in Transit: This right allows the seller to stop goods in transit if payment is not received. However, it is applicable only when the goods are in transit and not delivered.
- Resale: An unpaid seller can also resell the goods if they are undelivered, but this is a separate right and typically follows the exercise of lien or stoppage in transit.
Conclusion
The correct answer to the question is option 'A', the right of lien, which empowers the unpaid seller to retain the goods until payment is made, provided the goods have not been delivered. This right is crucial for protecting the seller's interests in a transaction where the buyer defaults on payment.
In the context of sales, an unpaid seller has specific rights when the buyer has not fulfilled their payment obligations. One of these rights is particularly significant when goods have not yet been delivered.
Right of Lien
- The right of lien allows an unpaid seller to retain possession of the goods until payment is made. This right is applicable when the seller still has control over the goods, which means they have not been delivered to the buyer or their agent.
Key Aspects of Lien
- Possession: The seller must retain possession of the goods to exercise this right. If the goods have been delivered, the seller loses this right.
- Unpaid Goods: This right only applies to goods that remain unpaid for. If payment has been made or if the goods have been accepted by the buyer, this right does not hold.
Comparison with Other Rights
- Stoppage in Transit: This right allows the seller to stop goods in transit if payment is not received. However, it is applicable only when the goods are in transit and not delivered.
- Resale: An unpaid seller can also resell the goods if they are undelivered, but this is a separate right and typically follows the exercise of lien or stoppage in transit.
Conclusion
The correct answer to the question is option 'A', the right of lien, which empowers the unpaid seller to retain the goods until payment is made, provided the goods have not been delivered. This right is crucial for protecting the seller's interests in a transaction where the buyer defaults on payment.
When an unpaid seller, who has exercised his right of lien or stoppage in transit, re-sells the goods: - a)The buyer dies not acquires a good title to the goods as against the original buyer
- b)The buyer acquires a good title to the goods as against the original buyer
- c)The seller does not have a right to sell
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
When an unpaid seller, who has exercised his right of lien or stoppage in transit, re-sells the goods:
a)
The buyer dies not acquires a good title to the goods as against the original buyer
b)
The buyer acquires a good title to the goods as against the original buyer
c)
The seller does not have a right to sell
d)
None of the above
|
Deendayal Mundra answered |
This is the exception of Nemo dat quod non habet.Even the property of goods has paased to the buyer the new buyer will get a good title.
The minimum price below which the auctioneer will not sell the goods. - a)Stock price
- b)Reserve price
- c)Upset Price
- d)Either (b) or (c)
Correct answer is option 'D'. Can you explain this answer?
The minimum price below which the auctioneer will not sell the goods.
a)
Stock price
b)
Reserve price
c)
Upset Price
d)
Either (b) or (c)
|
Srsps answered |
The goods for sale at the auction may be subject to a reserve price or an upset price. The auctioneer cannot sell the goods below this price.
When the buyer gives price of the good and seller becomes insolvent then what remedy is available with the buyer against the goods and seller?- a)Only ratable dividend in respect of price.
- b)Goods if property in goods has passed to buyer
- c)No claim on goods
- d)Either (a) or (b)
Correct answer is option 'D'. Can you explain this answer?
When the buyer gives price of the good and seller becomes insolvent then what remedy is available with the buyer against the goods and seller?
a)
Only ratable dividend in respect of price.
b)
Goods if property in goods has passed to buyer
c)
No claim on goods
d)
Either (a) or (b)
|
|
Lakshmi Kumar answered |
When the buyer gives the price of the goods and the seller becomes insolvent, the buyer may have certain remedies available to them. The correct answer is option 'D', which states that the buyer may have either a claim for a ratable dividend in respect of the price or a claim on the goods if the property in the goods has passed to the buyer. Let's break down this answer and explain it in detail.
Ratable Dividend:
- In the event of the seller's insolvency, the buyer may have a claim for a ratable dividend in respect of the price paid for the goods.
- A ratable dividend refers to the distribution of the seller's assets among all the creditors in proportion to their claims.
- This means that the buyer may be entitled to a share of the seller's remaining assets based on the amount they paid for the goods.
Claim on the Goods:
- Alternatively, if the property in the goods has passed to the buyer, they may have a claim on the goods themselves.
- The property in the goods typically passes from the seller to the buyer when certain conditions are met, such as when the goods are delivered or when payment is made.
- If the buyer can prove that they have obtained ownership of the goods, they may have the right to reclaim them from the seller's estate.
It's important to note that the available remedy may depend on the specific circumstances of the transaction and the applicable laws in the jurisdiction. The buyer should consult with legal professionals to understand their rights and options in case of the seller's insolvency.
In conclusion, when the buyer gives the price of the goods and the seller becomes insolvent, the buyer may have remedies such as a claim for a ratable dividend in respect of the price or a claim on the goods if the property in the goods has passed to the buyer. The specific remedy will depend on the circumstances and applicable laws.
Ratable Dividend:
- In the event of the seller's insolvency, the buyer may have a claim for a ratable dividend in respect of the price paid for the goods.
- A ratable dividend refers to the distribution of the seller's assets among all the creditors in proportion to their claims.
- This means that the buyer may be entitled to a share of the seller's remaining assets based on the amount they paid for the goods.
Claim on the Goods:
- Alternatively, if the property in the goods has passed to the buyer, they may have a claim on the goods themselves.
- The property in the goods typically passes from the seller to the buyer when certain conditions are met, such as when the goods are delivered or when payment is made.
- If the buyer can prove that they have obtained ownership of the goods, they may have the right to reclaim them from the seller's estate.
It's important to note that the available remedy may depend on the specific circumstances of the transaction and the applicable laws in the jurisdiction. The buyer should consult with legal professionals to understand their rights and options in case of the seller's insolvency.
In conclusion, when the buyer gives the price of the goods and the seller becomes insolvent, the buyer may have remedies such as a claim for a ratable dividend in respect of the price or a claim on the goods if the property in the goods has passed to the buyer. The specific remedy will depend on the circumstances and applicable laws.
M sold goods to B. The payment was to be done after one month. B did not made payment. The right of lien can be exercised by M when goods are________.- a)Handed over to transporter
- b)Not handed over to anyone
- c)Handed over to B
- d)Handed over to anyone
Correct answer is option 'B'. Can you explain this answer?
M sold goods to B. The payment was to be done after one month. B did not made payment. The right of lien can be exercised by M when goods are________.
a)
Handed over to transporter
b)
Not handed over to anyone
c)
Handed over to B
d)
Handed over to anyone
|
|
Lekshmi Mehta answered |
Explanation:
The right of lien is a legal right that allows the seller to retain possession of goods until the buyer fulfills their obligation to pay for them. In this scenario, M sold goods to B and the payment was to be made after one month. However, B did not make the payment. In such a situation, M can exercise the right of lien and retain possession of the goods until the payment is made.
The correct answer is option B, which states that the right of lien can be exercised by M when goods are not handed over to anyone. This means that if M has not yet handed over the goods to B, then M can retain possession of the goods until the payment is made.
If M had already handed over the goods to B, then M cannot exercise the right of lien as the possession of the goods is with B. In such a case, M can take legal action against B for non-payment of the dues.
To summarize, the right of lien can be exercised by the seller when the following conditions are met:
- The seller has possession of the goods.
- The buyer has not fulfilled their obligation to pay for the goods.
- The goods have not been handed over to the buyer.
Therefore, in this scenario, M can exercise the right of lien only if the goods have not been handed over to B.
The right of lien is a legal right that allows the seller to retain possession of goods until the buyer fulfills their obligation to pay for them. In this scenario, M sold goods to B and the payment was to be made after one month. However, B did not make the payment. In such a situation, M can exercise the right of lien and retain possession of the goods until the payment is made.
The correct answer is option B, which states that the right of lien can be exercised by M when goods are not handed over to anyone. This means that if M has not yet handed over the goods to B, then M can retain possession of the goods until the payment is made.
If M had already handed over the goods to B, then M cannot exercise the right of lien as the possession of the goods is with B. In such a case, M can take legal action against B for non-payment of the dues.
To summarize, the right of lien can be exercised by the seller when the following conditions are met:
- The seller has possession of the goods.
- The buyer has not fulfilled their obligation to pay for the goods.
- The goods have not been handed over to the buyer.
Therefore, in this scenario, M can exercise the right of lien only if the goods have not been handed over to B.
In pretended bidding sale is : - a)Voidable at the option of the buyer
- b)Voidable at the option of the seller
- c)It is legal and nothing can be done
- d)Buyer can ask for the goods at discounted rate
Correct answer is option 'A'. Can you explain this answer?
In pretended bidding sale is :
a)
Voidable at the option of the buyer
b)
Voidable at the option of the seller
c)
It is legal and nothing can be done
d)
Buyer can ask for the goods at discounted rate
|
|
Ritika Iyer answered |
Voidable at the option of the buyer
In a pretended bidding sale, the correct answer is option 'A' - the sale is voidable at the option of the buyer. Let's understand why this is the correct answer.
Definition of pretended bidding sale:
A pretended bidding sale refers to a situation where the seller employs false bidding or other dishonest practices to artificially inflate the price of goods being auctioned. This means that the seller is misleading the buyers by creating an illusion of competition and driving up the price of the goods.
Explanation:
When a seller engages in pretended bidding, it goes against the principles of fair trade and violates the principles of contract law. This type of sale is considered to be fraudulent in nature because it deceives potential buyers and manipulates the market.
Here's why the sale is voidable at the option of the buyer:
1. Fraudulent misrepresentation: Pretended bidding involves fraudulent misrepresentation by the seller. The seller intentionally creates a false impression of competition to deceive buyers and induce them to pay a higher price. This misrepresentation undermines the buyer's ability to make an informed decision.
2. Voidable contract: A voidable contract is a legal agreement that is initially valid, but can be canceled or voided by one of the parties due to certain circumstances. In the case of a pretended bidding sale, the buyer has the option to treat the contract as voidable because the seller's fraudulent actions have affected the formation of a fair and genuine contract.
3. Buyer's right to avoid the contract: The buyer, upon discovering the deception or fraudulent practices involved in a pretended bidding sale, has the right to avoid the contract. This means that the buyer can choose to cancel the contract and seek remedies such as refund of any payment made or damages suffered.
4. Legal protection against fraudulent practices: Laws and regulations exist to protect buyers from fraudulent practices. In many jurisdictions, there are consumer protection laws that prohibit deceptive trade practices and provide remedies for victims of fraud.
In conclusion, a pretended bidding sale is voidable at the option of the buyer because it involves fraudulent misrepresentation by the seller, undermines the principles of fair trade, and violates contract law. The buyer has the right to avoid the contract and seek remedies for any damages suffered as a result of the fraudulent sale.
In a pretended bidding sale, the correct answer is option 'A' - the sale is voidable at the option of the buyer. Let's understand why this is the correct answer.
Definition of pretended bidding sale:
A pretended bidding sale refers to a situation where the seller employs false bidding or other dishonest practices to artificially inflate the price of goods being auctioned. This means that the seller is misleading the buyers by creating an illusion of competition and driving up the price of the goods.
Explanation:
When a seller engages in pretended bidding, it goes against the principles of fair trade and violates the principles of contract law. This type of sale is considered to be fraudulent in nature because it deceives potential buyers and manipulates the market.
Here's why the sale is voidable at the option of the buyer:
1. Fraudulent misrepresentation: Pretended bidding involves fraudulent misrepresentation by the seller. The seller intentionally creates a false impression of competition to deceive buyers and induce them to pay a higher price. This misrepresentation undermines the buyer's ability to make an informed decision.
2. Voidable contract: A voidable contract is a legal agreement that is initially valid, but can be canceled or voided by one of the parties due to certain circumstances. In the case of a pretended bidding sale, the buyer has the option to treat the contract as voidable because the seller's fraudulent actions have affected the formation of a fair and genuine contract.
3. Buyer's right to avoid the contract: The buyer, upon discovering the deception or fraudulent practices involved in a pretended bidding sale, has the right to avoid the contract. This means that the buyer can choose to cancel the contract and seek remedies such as refund of any payment made or damages suffered.
4. Legal protection against fraudulent practices: Laws and regulations exist to protect buyers from fraudulent practices. In many jurisdictions, there are consumer protection laws that prohibit deceptive trade practices and provide remedies for victims of fraud.
In conclusion, a pretended bidding sale is voidable at the option of the buyer because it involves fraudulent misrepresentation by the seller, undermines the principles of fair trade, and violates contract law. The buyer has the right to avoid the contract and seek remedies for any damages suffered as a result of the fraudulent sale.
Chapter doubts & questions for Unit 4: Unpaid Seller - Business Laws for CA Foundation 2025 is part of CA Foundation exam preparation. The chapters have been prepared according to the CA Foundation exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for CA Foundation 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
Chapter doubts & questions of Unit 4: Unpaid Seller - Business Laws for CA Foundation in English & Hindi are available as part of CA Foundation exam.
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