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

Under the Sale of Goods Act, which legal right entitles an unpaid seller who is currently in possession of the goods to retain them until the purchase price is paid?

  1. Right of lienAnswer
  2. B
    Right of stoppage in transitu
  3. C
    Action for breach of warranty
  4. D
    Right of repossession under hire purchase

Answer

The right of lien is the statutory remedy that allows an unpaid seller in possession of goods to retain them until full payment is received.
The correct option is the right of lien because under the Sale of Goods Act, an unpaid seller who is in possession of the goods is entitled to retain possession of them until payment or tender of the price.

Step-by-Step Solution

1
Identify the status of the seller and location of the goods
The seller is unpaid and still retains physical possession of the goods.
Possession is the essential prerequisite for exercising a lien under the Sale of Goods Act.
2
Distinguish between real remedies of an unpaid seller
The right of lien applies prior to delivery while goods are in possession, whereas stoppage in transitu requires goods to be in transit with a carrier.
Matching the factual scenario to the correct statutory remedy ensures proper legal classification.

Key Concept

Unpaid Seller's Right of Lien
Estimated Time:45s
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Topics

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

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