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CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods

Under the Sale of Goods Act, 1930, which of the following is a right that an unpaid seller has by implication of law even though the property in the goods has passed to the buyer?

An unpaid seller has, by implication of law, a lien on the goods for the price while he remains in possession of them, even if property has passed to the buyer. He also has stoppage in transit on insolvency and a limited right of re-sale.

  1. AA lien on the goods for the price while he is in possession of themCorrect
  2. BA right to rescind the contract merely because the buyer has not paid on time
  3. CA right to sue for specific performance without approaching any court
  4. DA right to retain the goods even after the price has been fully paid

Explanation

Section 46(1) gives the unpaid seller, as such, a lien on the goods for the price while he is in possession of them, a right of stopping the goods in transit on the buyer's insolvency, and a right of re-sale as limited by the Act. Rescission merely for non-payment is not given by implication of law, and once the price is paid the seller is no longer unpaid.

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