Fill in the blanks: The unpaid seller has the right to exercise a lien on goods in possession when sold without ___ or when the buyer becomes ___.

Credit stipulation; insolvent

Explain the right of stoppage in transit and the conditions under which it can be exercised.

Right of stoppage in transit explained.

• Seller must be unpaid.

• Goods must be in transit.

• Buyer must be insolvent.

True or False: The right of lien is applicable even if the buyer has already taken possession of the goods.

False. The right of lien is a possessory right and can only be exercised while the seller retains possession of the goods.

What happens to the right of stoppage in transit if the buyer intercepts the goods before delivery?

The right of stoppage in transit is forfeited if the buyer intercepts the goods before they reach their destination.

Fill in the blank: The unpaid seller loses the right of lien when they deliver goods to a ___ for transmission to the buyer without reserving the right of disposal.

Carrier

What is the significance of the right of re-sale for an unpaid seller?

Right of re-sale is significant.

• Mitigates seller's financial losses.

• Allows recovery of original price.

• Facilitates resale to other buyers.

True or False: A seller can exercise their right of lien after they have transferred the document of title to the buyer.

False. The right of lien is defeated once the document of title has been transferred.

Fill in the blank: Under Section 54(2), when an unpaid seller resells goods, the subsequent buyer obtains ___ to the goods against the original buyer.

Title

Explain the buyer's rights against the seller in the event of a breach of contract.

Buyers have rights after breach.

• Sue for damages incurred.

• Seek specific performance remedy.

• Treat contract as rescinded.