Question 3 OR (a) part ii

Right of resale

3 marks

Time to write
About 6 minutes

From an older CBCS paper

Question

Question 3 OR (a) part ii · 3 marks
  1. Is the right of resale available to the unpaid seller. Comment.

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

6 minfor 3 marks

Read from the question

  • CommentA statement to judge: take a stand on it in your first line, give your reasons, and come back to it at the end.

What the paper leaves open

Marked as one question of 9 marks; answered here in 3 parts of 3 marks each (marks inferred).

Write it in this order

  1. 1 (ii) Right of resale 3 marks 6 min

Try it first. About 6 minutes for 3 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.

(ii) Right of resale: yes. An unpaid seller may resell the goods (s. 54):

Picture itRight of resale

1No payment yet, so Karim locks the crates and folds his arms—the goods stay with him.

LienThe right to retain the goods in his possession until payment or tender of the price.

2Word comes that the buyer has gone broke: he races the truck down the highway to stop it.

Stoppage in transitWhere the buyer becomes insolvent, the right to stop the goods while they are in the course of transit.

3The mangoes will not wait, so he sells them fresh to the next buyer at the market.

ResaleWhere the goods are perishable.

  1. where the goods are perishable;
  2. where he gives the buyer notice of his intention to resell and the buyer does not pay or tender the price within a reasonable time; he may then recover any loss on resale from the buyer and keep any profit;
  3. where, having exercised his lien or stoppage in transit, he resells, the new buyer gets a good title as against the original buyer; and
  4. where the right of resale is expressly reserved in the contract.

Where the 3 marks sit

#ComponentMarks
1(ii) Right of resale: yes3
Total3
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