Multiple choice

The unpaid seller has right of stoppage of goods in transit when

  1. the seller wishes not to deliver the goods to buyer

  2. the buyer has refused to make payment

  3. the buyer has become insolvent

  4. all of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 Conditions under which Right of Stoppage in Transit can be Exercised [Section 50]: The unpaid seller can exercise the right of stoppage in transit only if the following conditions are fulfilled: (i) The seller must have parted with the possession of goods, i.e., the goods must not be in the possession of seller. (ii) The goods must be in the course of transit. (iii) The buyer must have become insolvent.

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