CAIIB · BRBL

UNPAID SELLER & CONDITIONS AND WARRANTIES

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

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

A seller is unpaid when the whole price has not been paid or tendered, or a bill of exchange or other negotiable instrument given as conditional payment has been dishonoured.

What constitutes 'payment' to remove the unpaid seller status under the Sale of Goods Act?

Full unconditional payment or acceptance of negotiable instrument

What are the three rights of an unpaid seller against the goods under the Sale of Goods Act?

An unpaid seller has three rights against the goods: right of lien, right of stoppage in transit, and right of resale.

What is the right of withholding delivery available to an unpaid seller?

Seller can refuse delivery when property has not passed to buyer

Under what conditions can an unpaid seller exercise the right of lien?

The unpaid seller can exercise lien when goods are sold without stipulation as to credit, the credit period has expired, or the buyer becomes insolvent.

When does an unpaid seller's right of lien arise in a sale of goods transaction?

When goods are sold on credit and credit period has expired

What is the right of stoppage in transit available to an unpaid seller?

It is the right of an unpaid seller to resume possession of goods while they are in transit and retain them until payment, exercisable only when the buyer becomes insolvent.

Can an unpaid seller exercise lien on goods even after parting with possession?

No, lien requires continuous possession of goods by seller

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