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When the buyer gives price of the good and seller becomes insolvent then what remedy is available with the buyer against the goods and seller?
- a)Only ratable dividend in respect of price.
- b)Goods if property in goods has passed to buyer
- c)No claim on goods
- d)Either (a) or (b)
Correct answer is option 'D'. Can you explain this answer?
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When the buyer gives price of the good and seller becomes insolvent th...
When the buyer gives the price of the goods and the seller becomes insolvent, the buyer may have certain remedies available to them. The correct answer is option 'D', which states that the buyer may have either a claim for a ratable dividend in respect of the price or a claim on the goods if the property in the goods has passed to the buyer. Let's break down this answer and explain it in detail.
Ratable Dividend:
- In the event of the seller's insolvency, the buyer may have a claim for a ratable dividend in respect of the price paid for the goods.
- A ratable dividend refers to the distribution of the seller's assets among all the creditors in proportion to their claims.
- This means that the buyer may be entitled to a share of the seller's remaining assets based on the amount they paid for the goods.
Claim on the Goods:
- Alternatively, if the property in the goods has passed to the buyer, they may have a claim on the goods themselves.
- The property in the goods typically passes from the seller to the buyer when certain conditions are met, such as when the goods are delivered or when payment is made.
- If the buyer can prove that they have obtained ownership of the goods, they may have the right to reclaim them from the seller's estate.
It's important to note that the available remedy may depend on the specific circumstances of the transaction and the applicable laws in the jurisdiction. The buyer should consult with legal professionals to understand their rights and options in case of the seller's insolvency.
In conclusion, when the buyer gives the price of the goods and the seller becomes insolvent, the buyer may have remedies such as a claim for a ratable dividend in respect of the price or a claim on the goods if the property in the goods has passed to the buyer. The specific remedy will depend on the circumstances and applicable laws.
Ratable Dividend:
- In the event of the seller's insolvency, the buyer may have a claim for a ratable dividend in respect of the price paid for the goods.
- A ratable dividend refers to the distribution of the seller's assets among all the creditors in proportion to their claims.
- This means that the buyer may be entitled to a share of the seller's remaining assets based on the amount they paid for the goods.
Claim on the Goods:
- Alternatively, if the property in the goods has passed to the buyer, they may have a claim on the goods themselves.
- The property in the goods typically passes from the seller to the buyer when certain conditions are met, such as when the goods are delivered or when payment is made.
- If the buyer can prove that they have obtained ownership of the goods, they may have the right to reclaim them from the seller's estate.
It's important to note that the available remedy may depend on the specific circumstances of the transaction and the applicable laws in the jurisdiction. The buyer should consult with legal professionals to understand their rights and options in case of the seller's insolvency.
In conclusion, when the buyer gives the price of the goods and the seller becomes insolvent, the buyer may have remedies such as a claim for a ratable dividend in respect of the price or a claim on the goods if the property in the goods has passed to the buyer. The specific remedy will depend on the circumstances and applicable laws.
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When the buyer gives price of the good and seller becomes insolvent then what remedy is available with the buyer against the goods and seller?a)Only ratable dividend in respect of price.b)Goods if property in goods has passed to buyerc)No claim on goodsd)Either (a) or (b)Correct answer is option 'D'. Can you explain this answer?
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When the buyer gives price of the good and seller becomes insolvent then what remedy is available with the buyer against the goods and seller?a)Only ratable dividend in respect of price.b)Goods if property in goods has passed to buyerc)No claim on goodsd)Either (a) or (b)Correct answer is option 'D'. 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 the buyer gives price of the good and seller becomes insolvent then what remedy is available with the buyer against the goods and seller?a)Only ratable dividend in respect of price.b)Goods if property in goods has passed to buyerc)No claim on goodsd)Either (a) or (b)Correct answer is option 'D'. 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 the buyer gives price of the good and seller becomes insolvent then what remedy is available with the buyer against the goods and seller?a)Only ratable dividend in respect of price.b)Goods if property in goods has passed to buyerc)No claim on goodsd)Either (a) or (b)Correct answer is option 'D'. Can you explain this answer?.
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