Multiple choice

In case of an agreement to sale, if the seller becomes insolvent while the goods are in his possession, the buyer`s remedy

  1. is to claim the goods from the official receiver or assignee

  2. is to claim dividend from the estate of the seller for the price paid

  3. is not available

  4. is to file a suit for damages

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under Section 39(2) of the Sale of Goods Act, when a seller becomes insolvent with goods in possession, the buyer's remedy is to claim a dividend from the insolvent seller's estate for the price paid. The buyer cannot directly claim goods from the official receiver, nor is there no remedy.