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

Which of the following is NOT a condition for the mercantile agent proviso to protect a buyer?

Payment of the price in cash at the time of contract is not a condition. The proviso requires the agent's possession with the owner's consent, a sale in the ordinary course of a mercantile agent's business, and a buyer acting in good faith without notice.

  1. AThe agent is in possession of the goods or documents of title with the owner's consent
  2. BThe agent sells in the ordinary course of business of a mercantile agent
  3. CThe buyer acts in good faith and has no notice of lack of authority
  4. DThe buyer has paid the price in cash at the time of contractCorrect

Explanation

The proviso requires the agent's possession with the owner's consent, a sale in the ordinary course of business of a mercantile agent, and a buyer in good faith without notice. Payment of price in cash is not a stated requirement, so option four is not a condition.

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