CA Foundation Exam > CA Foundation Questions > Where the seller expressly reserves the right...
Start Learning for Free
Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:
- a)Cannot claim the same form the buyer as damages
- b)Can claim the same from the buyer as damages
- c)Sue the buyer for not purchasing
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Where the seller expressly reserves the right of resale in case the bu...
RIGHTS OF AN UNPAID SELLER (SEC. 45 TO 44)
Where a buyer to who property in the goods have passed, fails to pay the price there of the seller has a right to file a suit against the buyer for the price and similarly where the purchaser is responsible for non-fulfillment of some conditions in a contract of sale, he shall be liable to the seller for damages but these rights of a seller are based upon the personal liability of the buyer.
But there is another class of rights which are given to an unpaid seller by section 45 to 54 of Sale of Goods Act, 1930 and these rights are available only against the goods and not against the purchaser personally.
Most Upvoted Answer
Where the seller expressly reserves the right of resale in case the bu...
**Explanation:**
When a seller reserves the right of resale in case the buyer makes a default, it means that if the buyer fails to fulfill their obligations under the sales contract, the seller has the right to resell the goods that were originally sold to the buyer. This right of resale allows the seller to mitigate their losses by selling the goods to another buyer.
In such a situation, if there are losses to the seller on the resale, the seller has the following options:
**1. Claim damages from the buyer:**
The seller can claim the losses suffered on the resale from the buyer as damages. This means that the seller can seek compensation from the buyer for the difference between the original contract price and the resale price, as well as any additional costs incurred in the resale process. By claiming damages, the seller can recover their losses and be compensated for any financial harm caused by the buyer's default.
**2. Sue the buyer for not purchasing:**
If the buyer fails to purchase the goods as agreed upon in the sales contract, the seller can take legal action against the buyer for breach of contract. By suing the buyer, the seller can seek remedies such as specific performance (forcing the buyer to fulfill their obligations), cancellation of the contract, or monetary damages. This allows the seller to hold the buyer accountable for their default and seek appropriate legal remedies.
**Correct answer: C) Sue the buyer for not purchasing**
In this context, the correct answer is option C because it states that the seller can sue the buyer for not purchasing. By taking legal action, the seller can seek the appropriate remedies available under the law to recover their losses and protect their rights as a seller. This may involve seeking damages or other forms of relief through the legal system.
When a seller reserves the right of resale in case the buyer makes a default, it means that if the buyer fails to fulfill their obligations under the sales contract, the seller has the right to resell the goods that were originally sold to the buyer. This right of resale allows the seller to mitigate their losses by selling the goods to another buyer.
In such a situation, if there are losses to the seller on the resale, the seller has the following options:
**1. Claim damages from the buyer:**
The seller can claim the losses suffered on the resale from the buyer as damages. This means that the seller can seek compensation from the buyer for the difference between the original contract price and the resale price, as well as any additional costs incurred in the resale process. By claiming damages, the seller can recover their losses and be compensated for any financial harm caused by the buyer's default.
**2. Sue the buyer for not purchasing:**
If the buyer fails to purchase the goods as agreed upon in the sales contract, the seller can take legal action against the buyer for breach of contract. By suing the buyer, the seller can seek remedies such as specific performance (forcing the buyer to fulfill their obligations), cancellation of the contract, or monetary damages. This allows the seller to hold the buyer accountable for their default and seek appropriate legal remedies.
**Correct answer: C) Sue the buyer for not purchasing**
In this context, the correct answer is option C because it states that the seller can sue the buyer for not purchasing. By taking legal action, the seller can seek the appropriate remedies available under the law to recover their losses and protect their rights as a seller. This may involve seeking damages or other forms of relief through the legal system.
Free Test
FREE
| Start Free Test |
Community Answer
Where the seller expressly reserves the right of resale in case the bu...
WHERE THE SELLER EXPRESSLY RESERVES THE RIGHT OF RESALE IN CASE OF BUYER MAKES A DEFAULT IN MAKING THE PAYMENT,THE ORIGINAL CONTRACT WILL BE RESCINDED BUT THE SELLER WILL HAVE A RIGHT TO CLAIM DAMAGED FROM THE BUYER AS PER SECTION 54(4) OF SALE OF GOODS ACT.THIS IS ONE OF THE CIRCUMSTANCES UNDER WHICH AN UNPAID SELLER CAN RESULT THE GOODS.
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
Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
Question Description
Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. 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 Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. 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 Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. 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 Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. 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 Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. 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 Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:a)Cannot claim the same form the buyer as damagesb)Can claim the same from the buyer as damagesc)Sue the buyer for not purchasingd)None of the aboveCorrect answer is option 'C'. 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