Multiple choice

Conditions to be fulfilled before a seller of goods can be deemed to be unpaid seller are: (a) he must unpaid and the price must be due, (b) he must have an immediate right for action for the price and (c) a bill of exchange or other negotiable instrument was received but the same has been dishonored.

  1. True

  2. False

  3. Partly true

  4. Cannot say

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

A seller qualifies as 'unpaid' in three situations: when the full price hasn't been paid or tendered, when the seller has an immediate right to sue for the price, or when a negotiable instrument received as payment has been dishonored. These criteria determine when seller protections activate.