Home › CA Foundation › businesslaw › Sale of Goods — Unpaid Seller › When an unpaid seller exercises the right of sto…
When an unpaid seller exercises the right of stoppage in transit, the contract of sale is:
ANot rescinded; the buyer may still claim the goods on paying the price
BVoid
CConverted into a hire-purchase
DAutomatically rescinded
Answer & Solution
Correct answer: A. Not rescinded; the buyer may still claim the goods on paying the price
Stoppage does not rescind the contract; it merely lets the seller hold the goods as security, and the buyer may obtain them on paying the price.
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 resellUnder Section 53, a sub-sale or pledge of the goods by the buyer:Under Section 52, stoppage in transit is effected by: