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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?
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Most Upvoted Answer
When an unpaid seller, who has exercised his right of lien or stoppage...
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.
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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 buyerb)The buyer acquires a good title to the goods as against the original buyerc)The seller does not have a right to selld)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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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 buyerb)The buyer acquires a good title to the goods as against the original buyerc)The seller does not have a right to selld)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 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 buyerb)The buyer acquires a good title to the goods as against the original buyerc)The seller does not have a right to selld)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 buyerb)The buyer acquires a good title to the goods as against the original buyerc)The seller does not have a right to selld)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
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