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CA Foundation · Business Laws · The Sale of Goods Act, 1930

Kapoor sold a machine to Lal on credit and has delivered part of it. Lal does not pay. Which statement about Kapoor's right of lien over the remaining part is correct?

Kapoor may exercise lien over the undelivered remainder. Part delivery does not by itself end an unpaid seller's lien, unless the circumstances show that he intended to waive it. Without such waiver, he can retain the rest until the price is paid.

  1. AKapoor may exercise lien over the remainder unless part delivery shows an intention to waive the lienCorrect
  2. BPart delivery always ends the lien over the remainder
  3. CLien is only available if no part of the goods was delivered
  4. DKapoor can sue only for damages, never for the price

Explanation

Where an unpaid seller has made part delivery, he may still exercise lien on the remainder. The exception is where the part delivery was made in circumstances showing an agreement to waive the lien. Option B is wrong because part delivery does not automatically end it.

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