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Which correctly distinguishes the right of lien from the right of stoppage in transit?
ABoth require the buyer's insolvency
BStoppage can be exercised even where the buyer is solvent
CLien regains possession; stoppage retains it
DLien is the right to retain possession; stoppage is the right to regain possession after parting with it
Answer & Solution
Correct answer: D. Lien is the right to retain possession; stoppage is the right to regain possession after parting with it
Lien retains possession (and needs no insolvency); stoppage regains possession that has been parted with, and arises only on the buyer's insolvency, beginning where lien ends.
Related questions
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