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All of the following are conditions for stoppage in transit EXCEPT:
AThe buyer is solvent
BThe seller has parted with possession
CThe goods are in transit and the buyer is insolvent
DThe seller is unpaid
Answer & Solution
Correct answer: A. The buyer is solvent
Stoppage requires the buyer to be insolvent; if the buyer is solvent the right does not arise. The seller must be unpaid, have parted with possession, and the goods must be in transit.
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