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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?
Most Upvoted Answer
If no notice of resale is given to the buyer, the unpaid seller is not...
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.
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If no notice of resale is given to the buyer, the unpaid seller is not entitled:a)To retain surplus if any under resaleb)To recover any loss on resale of the goodsc)Both (a) and (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
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If no notice of resale is given to the buyer, the unpaid seller is not entitled:a)To retain surplus if any under resaleb)To recover any loss on resale of the goodsc)Both (a) and (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If no notice of resale is given to the buyer, the unpaid seller is not entitled:a)To retain surplus if any under resaleb)To recover any loss on resale of the goodsc)Both (a) and (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If no notice of resale is given to the buyer, the unpaid seller is not entitled:a)To retain surplus if any under resaleb)To recover any loss on resale of the goodsc)Both (a) and (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
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