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Mercantile Laws Test - 12
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In case of an agreement to sale, if the seller becomes insolvent while the goods are in his possession, the buyer`s remedy
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A
is to claim dividend from the estate of the seller for the price paid
💡 Explanation:
Under Section 39(2) of the Sale of Goods Act, when a seller becomes insolvent with goods in possession, the buyer's remedy is to claim a dividend from the insolvent seller's estate for the price paid. The buyer cannot directly claim goods from the official receiver, nor is there no remedy.