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In an agreement to sell buyer __________ goods on insolvency of seller:
- a)Cannot claim
- b)Can claim
- c)Conditional claim
- d)None
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
In an agreement to sell buyer __________ goods on insolvency of seller...
Explanation:
In an agreement to sell, if the seller becomes insolvent (unable to pay debts), the buyer's claim on the goods may be affected. Let's analyze the options provided:
A: Cannot claim
- If the buyer chooses this option, it means that in the event of the seller's insolvency, the buyer will not be able to claim the goods.
- This implies that the buyer will lose any rights or ownership over the goods they intended to purchase.
B: Can claim
- If the buyer chooses this option, it means that in the event of the seller's insolvency, the buyer can still claim the goods.
- This implies that the buyer will retain their rights or ownership over the goods they intended to purchase.
C: Conditional claim
- This option suggests that the buyer's claim on the goods is subject to certain conditions.
- These conditions could include factors such as the buyer paying outstanding debts or fulfilling other obligations before being able to claim the goods.
D: None
- This option implies that there is no specific agreement or provision regarding the buyer's claim on the goods in case of the seller's insolvency.
Conclusion:
Based on the given options, the correct answer is A: Cannot claim. This means that if the seller becomes insolvent, the buyer will not be able to claim the goods they intended to purchase.
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In an agreement to sell, if the seller becomes insolvent (unable to pay debts), the buyer's claim on the goods may be affected. Let's analyze the options provided:
A: Cannot claim
- If the buyer chooses this option, it means that in the event of the seller's insolvency, the buyer will not be able to claim the goods.
- This implies that the buyer will lose any rights or ownership over the goods they intended to purchase.
B: Can claim
- If the buyer chooses this option, it means that in the event of the seller's insolvency, the buyer can still claim the goods.
- This implies that the buyer will retain their rights or ownership over the goods they intended to purchase.
C: Conditional claim
- This option suggests that the buyer's claim on the goods is subject to certain conditions.
- These conditions could include factors such as the buyer paying outstanding debts or fulfilling other obligations before being able to claim the goods.
D: None
- This option implies that there is no specific agreement or provision regarding the buyer's claim on the goods in case of the seller's insolvency.
Conclusion:
Based on the given options, the correct answer is A: Cannot claim. This means that if the seller becomes insolvent, the buyer will not be able to claim the goods they intended to purchase.
Most Upvoted Answer
In an agreement to sell buyer __________ goods on insolvency of seller...
Agreement to sale is made for future goods if the buyer become insolvent the seller won't supply goods instead of claim hence the contract become void
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Community Answer
In an agreement to sell buyer __________ goods on insolvency of seller...
Explanation:
When a seller becomes insolvent, it means that they are unable to pay their debts or meet their financial obligations. In such a situation, an agreement to sell goods may have certain provisions to protect the buyer's interests. One such provision is that the buyer cannot claim the goods.
Reasoning:
When a seller becomes insolvent, their assets are often liquidated or used to pay off their debts. In such a scenario, if the buyer were allowed to claim the goods, it would create a situation where the buyer would have priority over other creditors who are owed money by the seller. This would not be fair to the other creditors.
Effect:
By not allowing the buyer to claim the goods, it ensures that all the assets of the seller are available to be divided among the creditors in a fair and equitable manner. It prevents the buyer from having an unfair advantage over other creditors and ensures that all parties are treated equally in the insolvency proceedings.
Conclusion:
In conclusion, when a seller becomes insolvent, the buyer is not allowed to claim the goods. This is to ensure that all the assets of the seller are available to be distributed among the creditors in a fair and equitable manner. It prevents the buyer from having an unfair advantage over other creditors and ensures that all parties are treated equally in the insolvency proceedings.
When a seller becomes insolvent, it means that they are unable to pay their debts or meet their financial obligations. In such a situation, an agreement to sell goods may have certain provisions to protect the buyer's interests. One such provision is that the buyer cannot claim the goods.
Reasoning:
When a seller becomes insolvent, their assets are often liquidated or used to pay off their debts. In such a scenario, if the buyer were allowed to claim the goods, it would create a situation where the buyer would have priority over other creditors who are owed money by the seller. This would not be fair to the other creditors.
Effect:
By not allowing the buyer to claim the goods, it ensures that all the assets of the seller are available to be divided among the creditors in a fair and equitable manner. It prevents the buyer from having an unfair advantage over other creditors and ensures that all parties are treated equally in the insolvency proceedings.
Conclusion:
In conclusion, when a seller becomes insolvent, the buyer is not allowed to claim the goods. This is to ensure that all the assets of the seller are available to be distributed among the creditors in a fair and equitable manner. It prevents the buyer from having an unfair advantage over other creditors and ensures that all parties are treated equally in the insolvency proceedings.
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In an agreement to sell buyer __________ goods on insolvency of seller:a)Cannot claimb)Can claimc)Conditional claimd)NoneCorrect answer is option 'A'. Can you explain this answer?
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In an agreement to sell buyer __________ goods on insolvency of seller:a)Cannot claimb)Can claimc)Conditional claimd)NoneCorrect answer is option 'A'. 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 In an agreement to sell buyer __________ goods on insolvency of seller:a)Cannot claimb)Can claimc)Conditional claimd)NoneCorrect answer is option 'A'. 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 In an agreement to sell buyer __________ goods on insolvency of seller:a)Cannot claimb)Can claimc)Conditional claimd)NoneCorrect answer is option 'A'. Can you explain this answer?.
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