Multiple choice

When the carrier is holding goods in an independent capacity, the seller (a) has the right of stoppage in transit and (b) can exercise the right of stoppage in transit.

  1. True

  2. False

  3. Partly true

  4. Cannot say

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

When goods are in transit with a carrier acting in an independent capacity (not as the buyer's agent), the seller retains the right of stoppage in transit. This allows the seller to halt delivery and reclaim goods if the buyer becomes insolvent before taking delivery. The seller can exercise this right upon discovering the buyer's insolvency.