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

Under the Sale of Goods Act, an unpaid seller who is still in possession of the goods has a legal right to retain them until payment of the price is made or tendered by the buyer. Which remedy of the unpaid seller does this action describe?

  1. Right of lienAnswer
  2. B
    Right of stoppage in transitu
  3. C
    Right of deferred ownership
  4. D
    Right of invitation to treat

Answer

The right of lien is the statutory right of an unpaid seller in possession of goods to retain control over them until the purchase price is paid.
The correct answer is the right of lien. Under the provisions of the Sale of Goods Act, an unpaid seller who has physical custody of the goods has the statutory right to retain possession of those goods as security until the buyer pays or tenders the full purchase price.

Step-by-Step Solution

1
Identify the core situation described in the prompt.
The seller is unpaid, still possesses the goods, and refuses to release them until receiving payment.
Establishing physical possession and unpaid status determines which specific seller remedy applies under the Sale of Goods Act.
2
Distinguish between the possessory rights of an unpaid seller.
Retaining possession before delivery is the right of lien, whereas intercepting goods during transit is stoppage in transitu.
The Sale of Goods Act explicitly defines the right of lien as a possessory right exercisable when the purchase price has not been paid or tendered.

Key Concept

Unpaid Seller's Right of Lien
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Topics

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

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