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In which of the following cases, the unpaid seller loses his right of lien?
- a)delivery of goods to buyer
- b)delivery of goods to carrier
- c)tender of price by buyer
- d)all of these.
Correct answer is option 'D'. Can you explain this answer?
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In which of the following cases, the unpaid seller loses his right of ...
Understanding the Seller's Right of Lien
The right of lien allows an unpaid seller to retain possession of goods until the payment is made. However, there are specific circumstances where this right can be lost.
Scenarios Where the Right of Lien is Lost
1. Delivery of Goods to Buyer
- Once the goods are delivered to the buyer, the seller relinquishes their right of lien since possession is no longer with the seller.
2. Delivery of Goods to Carrier
- When goods are handed over to a carrier for transportation to the buyer, the seller’s right of lien is lost. This is because the seller no longer has possession; the carrier acts as an agent for the buyer.
3. Tender of Price by Buyer
- If the buyer offers to pay the price, the seller cannot exercise the lien. The seller must accept the payment, and the right of lien is extinguished.
Conclusion
Thus, the correct answer is option 'D'—the unpaid seller loses his right of lien in all these scenarios.
Key Takeaway
- The right of lien is contingent upon the seller maintaining possession.
- Delivery to the buyer or carrier and the buyer's tender of payment all result in the loss of lien rights, emphasizing the importance of possession in the seller's ability to enforce their claim for payment.
Understanding these principles is crucial for anyone involved in sales transactions, particularly in the context of the CA Foundation syllabus.
The right of lien allows an unpaid seller to retain possession of goods until the payment is made. However, there are specific circumstances where this right can be lost.
Scenarios Where the Right of Lien is Lost
1. Delivery of Goods to Buyer
- Once the goods are delivered to the buyer, the seller relinquishes their right of lien since possession is no longer with the seller.
2. Delivery of Goods to Carrier
- When goods are handed over to a carrier for transportation to the buyer, the seller’s right of lien is lost. This is because the seller no longer has possession; the carrier acts as an agent for the buyer.
3. Tender of Price by Buyer
- If the buyer offers to pay the price, the seller cannot exercise the lien. The seller must accept the payment, and the right of lien is extinguished.
Conclusion
Thus, the correct answer is option 'D'—the unpaid seller loses his right of lien in all these scenarios.
Key Takeaway
- The right of lien is contingent upon the seller maintaining possession.
- Delivery to the buyer or carrier and the buyer's tender of payment all result in the loss of lien rights, emphasizing the importance of possession in the seller's ability to enforce their claim for payment.
Understanding these principles is crucial for anyone involved in sales transactions, particularly in the context of the CA Foundation syllabus.
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In which of the following cases, the unpaid seller loses his right of lien?a)delivery of goods to buyerb)delivery of goods to carrierc)tender of price by buyerd)all of these.Correct answer is option 'D'. Can you explain this answer?
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