When the seller sells the goods on credit or grants a fresh term of credit on the expiry of the original term of credit, lien is waved until the expiry of the term of credit. It is an implied waiver of lien.
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True
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False
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Partly true
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Cannot say
A
Correct answer
Explanation
When a seller grants credit or extends a credit term, the lien is implicitly waived during that credit period. The seller cannot retain goods while allowing the buyer time to pay. This waiver matches the commercial reality that credit and possession rights are incompatible.