Multiple choice

Going by the Sale of Goods Act, which of the following is/are correct regarding unpaid seller?

  1. When the whole of the price has not been paid or tendered

  2. When a bill of exchange has been received as conditional payment and this condition has not been fulfilled

  3. Quality of the goods are disputed

  4. Both (1) and (2)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under section 38 of Sale of Goods Act, 1930, unpaid seller means: (a) when the whole of the price has not been paid or tendered; (b) when a bill of exchange or other negotiable instrument has been received as conditional payment and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise. 

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