alleryStart learning →Buyer turns insolvent during the credit term. The seller:
Amust still deliver as agreed
Bloses all rights on the goods
Cmay retain until payment
Dmay only claim interest
Answer & Solution
Correct answer: C. may retain until payment
Insolvency of the buyer is an independent ground for lien even when credit was granted.
Keep practising Sale of Goods — Unpaid Seller
Browse all Sale of Goods — Unpaid Seller questions for CA Foundation, or explore more Businesslaw topics.
Related questions
The buyer turns insolvent while goods are in transit. The seller who stops them may keep tUnpaid seller's lien exists only while the goods are:For the unpaid seller's rights, a consignor who has himself paid the price is treated as:Ship chartered by buyer: carrier or agent is decided by:Goods went by carrier, no disposal reserved; buyer insolvent. Seller may:Raj sold on credit; day 31 unpaid, goods in godown. He may:Chapter V of the Sale of Goods Act deals with the unpaid seller's rights against:The unpaid seller's right of resale is one that is: