Multiple choice

The lien is revived on the dishonour of the bill.

  1. True

  2. False

  3. Partly true

  4. Cannot say

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

If an unpaid seller accepts a negotiable instrument and it is dishonored, the seller's right of lien is revived. The seller can again exercise lien over the goods because the conditional payment failed and the original debt remains unpaid.