Home › CA Foundation › businesslaw › Sale of Goods — Unpaid Seller › P sells goods to R and receives a cheque for the…
P sells goods to R and receives a cheque for the full price, which is later dishonoured. P is:
ANot an unpaid seller, as he received payment
BOnly entitled to damages
CBarred from any remedy
DAn unpaid seller, the conditional payment having failed
Answer & Solution
Correct answer: D. An unpaid seller, the conditional payment having failed
A cheque is conditional payment; on dishonour the condition fails and the seller becomes an unpaid seller under Section 45(1)(b).
Related questions
Under Section 60, where the buyer repudiates the contract before the date of delivery, theWhere the buyer wrongfully refuses to accept and pay for the goods, the seller's remedy unUnder Section 55(1), the unpaid seller can sue for the price where:Where an unpaid seller, after exercising lien or stoppage, resells the goods, the new buyeA non-perishable resale by an unpaid seller WITHOUT giving notice to the buyer means the sUnder Section 54, where the goods are of a perishable nature, the unpaid seller may resellWhen an unpaid seller exercises the right of stoppage in transit, the contract of sale is:Under Section 53, a sub-sale or pledge of the goods by the buyer: