Question 3 OR (b)
Stoppage in transit as an extension of lien; buyer who resold unexamined computers
6 marks
- Time to write
- About 12 minutes
From an older CBCS paper
Question
Question 3 OR (b) · 6 marks“The right of stoppage in transit of goods is an extention of the right of lien”. Comment.
Without examining them, the buyer took delivery of 12 computers from the seller. Later he sold 6 computers to his customer, who complained of some defects in the computers. The buyer sought to return the computers to the seller. Was the buyer entitled to send the computers back to the seller?
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- Was the buyer…?A case problem: state the rule and its section, apply it to these facts, then answer in one line (yes or no, and why).
- (i)–(ii)2 items, each marked on its own: give each its share.
- CommentA statement to judge: take a stand on it in your first line, and come back to it at the end.
Write it in this order
The parts stand alone: start with the one you are surest of.
- Read the facts; underline who did what, and the exact question 1 min
- 1 (i) Lien and stoppage in transit 3 marks 5 min
- 2 (ii) Sections 41 and 42 applied 3 marks 5 min
- Check: section named, answer stated in one line 1 min
Short on time? A few lines on every part beat a full answer to one: each part is capped at its own marks.
Try it first. About 12 minutes for 6 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
(i) Stoppage in transit and lien. The statement is correct. An unpaid seller in possession of the goods has a lien on them for the price; once he has parted with possession to a carrier and the buyer has become insolvent, he can stop the goods in transit (s. 50), by taking possession of them or giving notice to the carrier not to deliver them. Lien is a right to retain possession; stoppage is a right to regain it, and it begins where the lien ends. Stoppage in transit thus carries the seller's security forward after he has lost his lien.
(ii) The computers. A buyer who has not examined the goods is entitled to a reasonable opportunity of examining them (s. 41); but acceptance is deemed to take place when the buyer intimates acceptance, does any act to the goods inconsistent with the seller's ownership, or retains them beyond a reasonable time without intimating rejection (s. 42). By reselling 6 of the 12 computers to his customer, the buyer did an act inconsistent with the seller's ownership, so he is deemed to have accepted the goods. He is therefore not entitled to return the computers; his remedy, if they are defective, is damages for breach of warranty.
Where the 6 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | (i) Lien and stoppage in transit | 3 |
| 2 | (ii) Sections 41 and 42 applied | 3 |
| Total | 6 |
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