Question 4 OR (a)
Unpaid seller: definition and rights against the goods
12 marks
- Time to write
- About 24 minutes
- Topic
- Unpaid seller
Question
Question 4 OR (a) · 12 marksDefine an unpaid seller. Against the goods, what rights does an unpaid seller have?
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
- Define…What…?2 asks, each with its own marks below. Answer both.
Write it in this order
- Read; underline the asks; jot your points 2 min
- 1 Unpaid seller (s. 45) 3 marks 5 min
- 2 Rights against the goods 9 marks 15 min
- Check: every ask answered, key terms underlined 2 min
Short on time? Trim steps 1 and 2 evenly rather than skip one: each is capped at its own marks.
Try it first. About 24 minutes for 12 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.
Unpaid seller. Section 45(1) of the Sale of Goods Act, 1930 treats the seller as an unpaid seller when the price has not been paid or tendered in full and he has an immediate right to sue for it, or when a bill of exchange or other negotiable instrument received as conditional payment has been dishonoured.
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.
- Lien (ss. 47-49): the right to retain the goods in his possession until payment or tender of the price, where the goods are sold without credit, the credit has expired, or the buyer has become insolvent. He may exercise it on the remainder after part delivery. It is lost by delivery to a carrier without reserving the right of disposal, by the buyer lawfully obtaining possession, or by waiver.
- Stoppage in transit (ss. 50-52): where the buyer becomes insolvent, the right to stop the goods while they are in the course of transit and resume possession until paid.
- Resale: where the goods are perishable, where he has given notice of his intention to resell and the buyer does not pay within a reasonable time, or where the right is expressly reserved.
- Withholding delivery: where the property has not passed to the buyer, the right to withhold delivery, similar to lien and stoppage in transit.
Where the 12 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Unpaid seller (s. 45) | 3 |
| 2 | Rights against the goods | 9 |
| Total | 12 |
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