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An unpaid seller may exercise his lien (Section 47) where:
AThe goods have left his possession
BThe sale was for cash, or the credit term has expired, or the buyer is insolvent
CThe goods were sold on credit and the term is still running
DThe buyer is solvent and within the credit period
Answer & Solution
Correct answer: B. The sale was for cash, or the credit term has expired, or the buyer is insolvent
Lien is available on a cash sale, after the credit period expires, or when the buyer becomes insolvent.
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