CAIIB · BRBL

Unpaid Seller

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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Q

Who is an unpaid seller under the Sale of Goods Act, 1930?

A

An unpaid seller is one to whom the whole price has not been paid or tendered, or where a negotiable instrument received as conditional payment has been dishonored.

Q

Under which Act is the concept of an unpaid seller governed in India?

A

Sale of Goods Act, 1930 governs unpaid seller rights.

Q

Which sections of the Sale of Goods Act, 1930 define the rights of an unpaid seller?

A

Sections 45 to 54 of the Sale of Goods Act, 1930 deal with the rights of an unpaid seller against goods.

Q

What is the meaning of 'unpaid' in the context of sale of goods?

A

Price not paid or negotiable instrument dishonoured.

Q

What are the two categories of rights available to an unpaid seller?

A

An unpaid seller has rights against the goods (real rights) and rights against the buyer personally (personal rights).

Q

Which section of the Sale of Goods Act, 1930 defines an unpaid seller?

A

Section 45 defines an unpaid seller.

Q

What is the right of lien available to an unpaid seller?

A

An unpaid seller in possession of goods has the right to retain them until the price is paid or tendered, even if property has passed to the buyer.

Q

What are the three main rights of an unpaid seller against the goods?

A

Lien, stoppage in transit, and right of resale.

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