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M sold goods to B. The payment was to be done after one month. B did not made payment. The right of lien can be exercised by M when goods are________.
  • a)
    Handed over to transporter 
  • b)
    Not handed over to anyone 
  • c)
    Handed over to B 
  • d)
    Handed over to anyone
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
M sold goods to B. The payment was to be done after one month. B did n...
Explanation:
The right of lien is a legal right that allows the seller to retain possession of goods until the buyer fulfills their obligation to pay for them. In this scenario, M sold goods to B and the payment was to be made after one month. However, B did not make the payment. In such a situation, M can exercise the right of lien and retain possession of the goods until the payment is made.

The correct answer is option B, which states that the right of lien can be exercised by M when goods are not handed over to anyone. This means that if M has not yet handed over the goods to B, then M can retain possession of the goods until the payment is made.

If M had already handed over the goods to B, then M cannot exercise the right of lien as the possession of the goods is with B. In such a case, M can take legal action against B for non-payment of the dues.

To summarize, the right of lien can be exercised by the seller when the following conditions are met:

- The seller has possession of the goods.
- The buyer has not fulfilled their obligation to pay for the goods.
- The goods have not been handed over to the buyer.

Therefore, in this scenario, M can exercise the right of lien only if the goods have not been handed over to B.
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M sold goods to B. The payment was to be done after one month. B did not made payment. The right of lien can be exercised by M when goods are________.a)Handed over to transporterb)Not handed over to anyonec)Handed over to Bd)Handed over to anyoneCorrect answer is option 'B'. Can you explain this answer?
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M sold goods to B. The payment was to be done after one month. B did not made payment. The right of lien can be exercised by M when goods are________.a)Handed over to transporterb)Not handed over to anyonec)Handed over to Bd)Handed over to anyoneCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M sold goods to B. The payment was to be done after one month. B did not made payment. The right of lien can be exercised by M when goods are________.a)Handed over to transporterb)Not handed over to anyonec)Handed over to Bd)Handed over to anyoneCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M sold goods to B. The payment was to be done after one month. B did not made payment. The right of lien can be exercised by M when goods are________.a)Handed over to transporterb)Not handed over to anyonec)Handed over to Bd)Handed over to anyoneCorrect answer is option 'B'. Can you explain this answer?.
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