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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?
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Unpaid Seller has a right of _________when the goods have not been del...
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.
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Unpaid Seller has a right of _________when the goods have not been delivered to the buyer or his agenta)Lienb)Stoppage in transitc)Resaled)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
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