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If the buyer becomes insolvent after transfer of property in goods, but before getting possession of goods:
- a)The Official Assignee will not be entitled to claim the goods and their possession from the seller
- b)The Official Assignee will be entitled to claim the goods but not their possession from the seller
- c)The Official Assignee will be entitled to claim the goods and their possession from the seller
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
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If the buyer becomes insolvent after transfer of property in goods, bu...
The Official Receiver or Assignee can take the possession of of goods from seller only if the ownership of goods has been transferred to the buyer.
Delivery is the voluntary transfer of possession from one person to another. Delivery may be actual, constructive or symbolic. Actual or physical delivery takes place where the goods are handed over by the seller to the buyer or his agent authorized to take possession of the goods.
Most Upvoted Answer
If the buyer becomes insolvent after transfer of property in goods, bu...
The correct answer is option C: The Official Assignee will be entitled to claim the goods and their possession from the seller.
Explanation:
When a buyer becomes insolvent after the transfer of property in goods but before getting possession of the goods, the Official Assignee will have certain rights and entitlements in relation to the goods.
1. Insolvency and property transfer: Insolvency refers to a situation where an individual or entity is unable to pay their debts as they become due. In this case, the buyer has become insolvent after the transfer of property in goods. The transfer of property in goods is the point at which the ownership of the goods passes from the seller to the buyer. Therefore, the buyer technically owns the goods even though they have not yet taken possession of them.
2. Rights of the Official Assignee: The Official Assignee is a person appointed by the court to manage the affairs of an insolvent person or company. In this case, the Official Assignee will have certain rights and entitlements in relation to the goods that have been transferred but not yet possessed by the insolvent buyer.
3. Claiming the goods and their possession: The Official Assignee will be entitled to claim the goods and their possession from the seller. This means that the Official Assignee can assert their right to take possession of the goods from the seller. This is because the goods are considered assets of the insolvent buyer, and the Official Assignee has the authority to manage and dispose of these assets for the benefit of the insolvent estate.
4. Legal basis: The Official Assignee's entitlement to claim the goods and their possession is based on the principle that the property in the goods has already been transferred to the buyer. Therefore, the seller no longer has a legal right to retain possession of the goods. The Official Assignee, as the representative of the insolvent estate, can exercise the rights of the buyer and demand the goods from the seller.
In conclusion, when a buyer becomes insolvent after the transfer of property in goods but before getting possession of the goods, the Official Assignee will be entitled to claim the goods and their possession from the seller. This is because the Official Assignee has the authority to manage the assets of the insolvent estate, including the goods that have been transferred but not yet possessed by the buyer.
Explanation:
When a buyer becomes insolvent after the transfer of property in goods but before getting possession of the goods, the Official Assignee will have certain rights and entitlements in relation to the goods.
1. Insolvency and property transfer: Insolvency refers to a situation where an individual or entity is unable to pay their debts as they become due. In this case, the buyer has become insolvent after the transfer of property in goods. The transfer of property in goods is the point at which the ownership of the goods passes from the seller to the buyer. Therefore, the buyer technically owns the goods even though they have not yet taken possession of them.
2. Rights of the Official Assignee: The Official Assignee is a person appointed by the court to manage the affairs of an insolvent person or company. In this case, the Official Assignee will have certain rights and entitlements in relation to the goods that have been transferred but not yet possessed by the insolvent buyer.
3. Claiming the goods and their possession: The Official Assignee will be entitled to claim the goods and their possession from the seller. This means that the Official Assignee can assert their right to take possession of the goods from the seller. This is because the goods are considered assets of the insolvent buyer, and the Official Assignee has the authority to manage and dispose of these assets for the benefit of the insolvent estate.
4. Legal basis: The Official Assignee's entitlement to claim the goods and their possession is based on the principle that the property in the goods has already been transferred to the buyer. Therefore, the seller no longer has a legal right to retain possession of the goods. The Official Assignee, as the representative of the insolvent estate, can exercise the rights of the buyer and demand the goods from the seller.
In conclusion, when a buyer becomes insolvent after the transfer of property in goods but before getting possession of the goods, the Official Assignee will be entitled to claim the goods and their possession from the seller. This is because the Official Assignee has the authority to manage the assets of the insolvent estate, including the goods that have been transferred but not yet possessed by the buyer.
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If the buyer becomes insolvent after transfer of property in goods, but before getting possession of goods:a)The Official Assignee will not be entitled to claim the goods and their possession from the sellerb)The Official Assignee will be entitled to claim the goods but not their possession from the sellerc)The Official Assignee will be entitled to claim the goods and their possession from the sellerd)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
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If the buyer becomes insolvent after transfer of property in goods, but before getting possession of goods:a)The Official Assignee will not be entitled to claim the goods and their possession from the sellerb)The Official Assignee will be entitled to claim the goods but not their possession from the sellerc)The Official Assignee will be entitled to claim the goods and their possession from the sellerd)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 If the buyer becomes insolvent after transfer of property in goods, but before getting possession of goods:a)The Official Assignee will not be entitled to claim the goods and their possession from the sellerb)The Official Assignee will be entitled to claim the goods but not their possession from the sellerc)The Official Assignee will be entitled to claim the goods and their possession from the sellerd)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 If the buyer becomes insolvent after transfer of property in goods, but before getting possession of goods:a)The Official Assignee will not be entitled to claim the goods and their possession from the sellerb)The Official Assignee will be entitled to claim the goods but not their possession from the sellerc)The Official Assignee will be entitled to claim the goods and their possession from the sellerd)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
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