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.