Multiple choice

The right of stoppage in transit is available to the unpaid seller when the buyer becomes insolvent and the good are in transit.

  1. True

  2. False

  3. Partly true

  4. Cannot say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The right of stoppage in transit allows an unpaid seller to stop goods while they are in transit to the buyer if the buyer becomes insolvent. It protects the seller from delivering goods to an insolvent buyer who cannot pay, preventing the goods from becoming part of the buyer's insolvency estate.

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