Multiple choice

In a sale if the buyer becomes insolvent before he pays the dues to the seller in the absence of lien, he must hand over the goods to the official, receiver or official assigance, whichever the case may be

  1. True

  2. False

  3. Partly true

  4. Cannot say
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A Correct answer
Explanation

When a buyer becomes insolvent before paying, and the seller has no lien (right to retain goods), the goods must be handed over to the insolvency official, receiver, or assignee. This protects the buyer's creditors by ensuring the goods become part of the insolvency estate.

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