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Under Section 54(3), where an unpaid seller who has exercised his lien or stoppage in transit resells the goods, the new buyer:
AMust pay the original buyer
BHolds only as bailee
CAcquires a good title as against the original buyer
DGets no title
Answer & Solution
Correct answer: C. Acquires a good title as against the original buyer
Section 54(3) gives a buyer on a resale by an unpaid seller (after lien or stoppage) a good title as against the original defaulting buyer.
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