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Difficulty: Very hardSale of Goods Act: Transfer of Title, Delivery, and Buyer/Seller Remedies

Match each legal scenario under the Sale of Goods Act in Column A with its corresponding statutory right, remedy, or title transfer principle in Column B.

  • An unpaid seller retaining physical possession of goods where property has passed to the buyer, because the buyer has failed to make payment on a cash sale.Exercise of the unpaid seller's statutory right of lien.
  • An unpaid seller intercepting and resuming possession of goods while they are in the custody of an independent carrier, upon discovering the buyer's insolvency.Exercise of the right of stoppage in transitu.
  • A purchaser acquiring goods in good faith and for value from a seller who obtained possession under a contract induced by fraud, before the original contract was rescinded.Acquisition of valid title under the voidable title exception to *nemo dat quod non habet*.
  • A buyer seeking a judicial order to compel the seller to deliver unique or specific goods following the seller's wrongful refusal to deliver.Buyer's equitable remedy of specific performance.

Answer

The correct pairings are: (1) retaining physical possession upon non-payment matches with the exercise of the unpaid seller's statutory right of lien; (2) intercepting goods in carrier custody due to buyer insolvency matches with the right of stoppage in transitu; (3) purchasing in good faith from a seller with an unrescinded fraudulent title matches with the voidable title exception to nemo dat quod non habet; and (4) seeking a court order to compel delivery of unique goods matches with the buyer's equitable remedy of specific performance.
Each legal situation accurately corresponds to its specific statutory mechanism under the Sale of Goods Act: physical retention maps to lien; transit interception maps to stoppage in transitu; bona fide acquisition before contract rescission maps to the voidable title exception; and judicial compulsion for specific goods delivery maps to specific performance.

Step-by-Step Solution

1
Analyze the scenario involving an unpaid seller retaining physical custody of goods after property has passed.
Identify this as the statutory right of lien under the Sale of Goods Act.
The right of lien relies strictly on continuous physical possession by the unpaid seller when credit terms were not extended or have expired.
2
Analyze the scenario of intercepting goods in transit due to buyer insolvency.
Identify this as the right of stoppage in transitu.
This right arises only after the seller has parted with possession to an intermediate carrier and exists until goods reach the buyer's actual custody.
3
Examine the third-party purchase from a seller holding title under a contract induced by fraud prior to rescission.
Apply the voidable title exception to the nemo dat rule.
Section 23 protects innocent third-party purchasers for value who buy before the defrauded party takes steps to void the underlying contract.
4
Examine the buyer's legal petition requesting actual delivery of unique goods.
Identify the remedy as an order for specific performance.
Under Section 52, courts can grant specific performance compelling delivery when monetary damages would be inadequate for specific or ascertained goods.

Key Concept

Statutory Rights, Exceptions to Title Transfer, and Buyer/Seller Remedies under the Sale of Goods Act
Estimated Time:3m 0s
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Topics

Sale of Goods Act: Transfer of Title, Delivery, and Buyer/Seller Remedies

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