Multiple choice

As per Sale of Goods Act, the unpaid seller of goods in possession of the goods, is entitled to retain the possession of the goods until payment of the price is made, in which of the following cases?

  1. If the goods have been sold without any stipulation as to credit

  2. If the goods have been sold on credit, but the term of credit has expired

  3. If the buyer becomes insolvent

  4. Any of the above

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

Subject to the provisions of this Act, the unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price, (a) where the goods have been sold without any stipulation as to credit; or (b) where the goods have been sold on credit, but the term of credit has expired; or (c) where the buyer becomes insolvent. Thus, option 4 is the correct answer.