Skip to content

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

Which of the following statements about an 'unpaid seller' is correct as per the Sale of Goods Act, 1930? Statement I: A seller is unpaid when the whole of the price has not been paid or tendered. Statement II: A seller who received a cheque as conditional payment is unpaid if the cheque is dishonoured.

Both statements are correct. A seller is unpaid when the whole price has not been paid or tendered, and also when a negotiable instrument taken as conditional payment is dishonoured, because the condition of receipt has not been fulfilled.

  1. AOnly Statement I is correct
  2. BOnly Statement II is correct
  3. CBoth Statements I and II are correctCorrect
  4. DNeither statement is correct

Explanation

Section 45(1) makes a seller unpaid when the whole price has not been paid or tendered, or when a negotiable instrument received as conditional payment is dishonoured so the condition is unfulfilled. Both statements match this, so the option saying only one is correct is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Elements of Law relating to Sale of Goods shows your real accuracy, how long you take and where you lose marks.

Practise Elements of Law relating to Sale of GoodsFree diagnostic mock

More Elements of Law relating to Sale of Goods questions