CA Foundation Exam > CA Foundation Questions > The unpaid seller has right of stoppage of go...
Start Learning for Free
The unpaid seller has right of stoppage of goods in transit only where the buyer
- a)become insolvent
- b)refuses to pay price
- c)acts fraudulently
- d)all of these
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
The unpaid seller has right of stoppage of goods in transit only where...
Right of stoppage in transit. It is a right of stopping the goods while in transit after the unpaid seller has lost possession of the goods. This right enables the seller to regain possession. Such a right is available to the unpaid seller when the buyer becomes insolvent and when the goods are in transit.
View all questions of this test
Most Upvoted Answer
The unpaid seller has right of stoppage of goods in transit only where...
Explanation:
The right of stoppage of goods in transit is a legal right that allows an unpaid seller to regain possession of the goods that are in transit to the buyer. This right arises when the buyer becomes insolvent, meaning that they are unable to pay their debts as they become due.
The right of stoppage of goods in transit is not available in all situations where the buyer fails to pay the price. It is specifically available only when the buyer becomes insolvent. This is because insolvency indicates a significant financial problem, and it is necessary to protect the unpaid seller's interest in such cases.
The right of stoppage of goods in transit gives the unpaid seller the power to stop the goods while they are still in transit and retain possession of them until they receive payment. This right allows the seller to prevent the buyer from taking possession of the goods if they are unable to pay for them.
In contrast, if the buyer simply refuses to pay the price or acts fraudulently, the right of stoppage of goods in transit does not arise. In these situations, the unpaid seller may have other remedies available to them, such as legal action to recover the amount owed or to seek damages for any fraudulent actions.
Summary:
- The right of stoppage of goods in transit is a legal right that allows an unpaid seller to regain possession of the goods that are in transit to the buyer.
- This right arises when the buyer becomes insolvent, indicating their inability to pay their debts.
- The right of stoppage of goods in transit is not available in situations where the buyer simply refuses to pay the price or acts fraudulently.
- If the buyer refuses to pay or acts fraudulently, the unpaid seller may have other remedies available, such as legal action or seeking damages.
The right of stoppage of goods in transit is a legal right that allows an unpaid seller to regain possession of the goods that are in transit to the buyer. This right arises when the buyer becomes insolvent, meaning that they are unable to pay their debts as they become due.
The right of stoppage of goods in transit is not available in all situations where the buyer fails to pay the price. It is specifically available only when the buyer becomes insolvent. This is because insolvency indicates a significant financial problem, and it is necessary to protect the unpaid seller's interest in such cases.
The right of stoppage of goods in transit gives the unpaid seller the power to stop the goods while they are still in transit and retain possession of them until they receive payment. This right allows the seller to prevent the buyer from taking possession of the goods if they are unable to pay for them.
In contrast, if the buyer simply refuses to pay the price or acts fraudulently, the right of stoppage of goods in transit does not arise. In these situations, the unpaid seller may have other remedies available to them, such as legal action to recover the amount owed or to seek damages for any fraudulent actions.
Summary:
- The right of stoppage of goods in transit is a legal right that allows an unpaid seller to regain possession of the goods that are in transit to the buyer.
- This right arises when the buyer becomes insolvent, indicating their inability to pay their debts.
- The right of stoppage of goods in transit is not available in situations where the buyer simply refuses to pay the price or acts fraudulently.
- If the buyer refuses to pay or acts fraudulently, the unpaid seller may have other remedies available, such as legal action or seeking damages.
Free Test
FREE
| Start Free Test |
Community Answer
The unpaid seller has right of stoppage of goods in transit only where...
The correct answer is "a. the buyer becomes insolvent."
According to the unpaid seller's right section 46, if in case the unpaid seller finds out the insolvency of the buyer, the seller has the right to stop the goods in transit.
Insolvent means that the person is not able to pay the money he owes.
Insolvent means that the person is not able to pay the money he owes.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. Can you explain this answer?
Question Description
The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. 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 The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. 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 The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. Can you explain this answer?.
The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. 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 The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. 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 The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. Can you explain this answer?.
Solutions for The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The unpaid seller has right of stoppage of goods in transit only where the buyera)become insolventb)refuses to pay pricec)acts fraudulentlyd)all of theseCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup