JUDICIAL/ LAW-EXAMS: IMPORTANT “ONE-LINERS” on Rights of “Unpaid-Seller” under SOGA, 1930 (Indian Perspective)

1. Unpaid Seller: Chapter _______under Sections ________of Sale of Goods Act, 1930 (SOGA) deals with ‘rights of unpaid seller’ against goods sold—Chapter-V; Sections 45 to 54.
2. Unpaid Seller: True/ False—The term ‘unpaid seller’ is not defined under the SOGA, 1930—False. [Defined under SOGA]
3. Unpaid Seller: The expression ‘unpaid seller’ is defined under Section_______of the SOGA, 1930—Section 45.
4. Who is Unpaid Seller?—Under SOGA, 1930, when the whole of the price has not been paid or tendered, the seller of goods is deemed to be an—Unpaid Seller. [Section 45]
5. Who is Unpaid Seller?—When a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise, the seller of goods is deemed to be an—Unpaid Seller. [Section 45]
6. Mediate Possession & Unpaid Seller’s Right—True/ False– Notwithstanding that the property in the goods have passed to the buyer, the unpaid seller of goods, as such, has by implication of law a lien on the goods for the price while he is in possession of them—True. [Section 46]
7. Mediate Possession & Insolvency & Unpaid Seller’s Right—True/ False– Notwithstanding that the property in the goods have passed to the buyer, the unpaid seller of goods, as such, has by implication of law in case of the insolvency of the buyer a right of stopping the goods in transit after he has parted with the possession of them—True. [Section 46]
8. Mediate Possession & Re-sale by Unpaid Seller—True/ False– Notwithstanding that the property in the goods have passed to the buyer, the unpaid seller of goods, as such, has by implication of law a right of re-sale as limited by this Act—True. [Section 46]
9. Withholding Delivery—True/ False– Where the property in goods has not passed to the buyer, the unpaid seller has, in addition to his other remedies, a right of withholding delivery—True. [Section 46]
10. Withholding Delivery is Co-extensive—True/ False-Where the property in goods has not passed to the buyer, the unpaid seller has, in addition to his other remedies, a right of withholding delivery similar to and co-extensive with his rights of lien and stoppage in transit where the property has passed to the buyer—True. [Section 46]
11. Seller’s right of lien is provided under Section?—Section 47.
12. Seller’s Lien: True/ False-The unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price, where the goods have been sold without any stipulation as to credit—True. [Section 47]
13. Seller’s Lien: True/ False-The unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price, where the goods have been sold on credit, but the term of credit has expired—True. [Section 47]
14. Seller’s Lien: True/ False-The unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price, where buyer  becomes insolvent—True. [Section 47]
15. Seller’s Lien: True/ False-The seller may exercise his right of lien notwithstanding that he is in possession of the goods as agent or bailee for the buyer—True. [Section 47]
16. Lien on Part-Delivery—True/ False-Where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder—True. [Section 47]
17. Section 49 of the SOGA deals with—Termination of Lien.
18. Termination by Non-reservation— True/ False– The unpaid seller of goods loses his lien thereon when he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal of the goods—True. [Section 49(1)(a)]
19. Termination by Possession—True/ False– The unpaid seller of goods loses his lien thereon when the buyer or his agent lawfully obtains possession of the goods—True. [Section 49]
20. Termination by Waiver—True/ False-The unpaid seller of goods loses his lien thereon by waiver thereof—True. [Section 49]
21. Decree and Lien— True/ False-The unpaid seller of goods, having a lien thereon, does not lose his lien by reason only that he has obtained a decree for the price of the goods. —True. [Section 49]
22. Stoppage in Transit—When the buyer of goods becomes insolvent, the unpaid seller who has parted with the possession of the goods has the right of stopping them in transit, he may resume possession of the goods as long as they are in the course of transit, and may retain them until payment or tender of the price. Such right is given under Section_______of the SOGA—Section 50.
23. Section 51 of the Sale of Goods Act, 1930 (SOGA) deals with—Duration of Transit.
24. Duration of transit—Goods are deemed to be in course of transit from the time when they are delivered to a carrier or other bailee for the purpose of transmission to the buyer, until—The Buyer or his Agent Takes Delivery from such Carrier or other Bailee. [Section 51]
25. Duration of transit— If the buyer or his agent obtains delivery of the goods before their arrival at the appointed destination, the transit is—at an end. [Section 51]
26. Transit Complete but Not Actually Delivered—If, the goods is arrived at the appointed destination, the carrier or other bailee acknowledges to the buyer or his agent that he holds the goods on his behalf and continues in possession of them as bailee for the buyer or his agent, the transit is—At an end. [Section 51]
27. Further Destination Immaterial—If the goods is arrived at the appointed destination, the carrier or other bailee acknowledges to the buyer or his agent that he holds the goods on his behalf and continues in possession of them as bailee for the buyer or his agent, the transit is at an end and the Seller is not liable for further delivery—True. [Section 51]
28. Further Destination Immaterial—If the goods is arrived at the appointed destination, the carrier or other bailee acknowledges to the buyer or his agent that he holds the goods on his behalf and continues in possession of them as bailee for the buyer or his agent, the transit is at an end and a further destination indicated by buyer for delivery of goods is—Immaterial. [Section 51]
29. Incomplete Transit— If the goods are rejected by the buyer and the carrier or other bailee continues in possession of them, the transit is not deemed to be at an end. It is__________that the seller has refused to receive them back—Immaterial. [Section 51]
30. Transit through Ship Chartered by Buyer—True/ False– When goods are delivered to a ship chartered by the buyer, it is a question depending on the circumstances of the particular case, whether they are in the possession of the master as a carrier or as agent of the buyer—True. [Section 51]
31. Deemed Transit—True/ False– Where the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent, the transit is deemed to be—At an end. [Section 51]
32. Part-Lien on Transit—True/ False– Where part delivery of the goods has been made to the buyer or his agent, the remainder of the goods may be stopped in transit, unless such part delivery has been given in such circumstances as to show an agreement to give up possession of the whole of the goods—True. [Section 51]
33. Expenses of re-delivery—When notice of stoppage in transit is given by the seller to the carrier or other bailee in possession of the goods, he shall re-deliver the goods to, or according to the directions of, the seller. The expenses of such re-delivery shall be borne by whom?—The Seller [Section 52]
34. Impact of Sub-Sale on Lien—True/ False– Generally, the unpaid seller’s right of lien or stoppage in transit is not affected by any sale or other disposition of the goods which the buyer may have made, unless the seller has assented thereto—True. [Section 53]
35. Impact on Lien on Bonafide Sub-Sale—True/ False– Where a title to goods has been lawfully sold in good faith and for consideration (bonafide), then the unpaid seller’s right of lien or stoppage in transit is—Defeated. [Section 53]
36. Lien Right on Bonafide Pledge—Where a title to goods has been lawfully by way of pledge or other disposition for value, the unpaid seller’s right of lien or stoppage is transit can only be exercised subject to—Rights of the Transferee. [Section 53].
37. Lien on Enforcement of Pledged Goods—True/ False– Where the transfer is by way of pledge, the unpaid seller has right to require from the pledgee to have the amount secured by the pledge satisfied in the first instance, as far as possible, out of any other goods or securities of the buyer in the hands of the pledgee and available against the buyer—True. [Section 53]
38. Mere Lien not Rescission—True/ False– A contract of sale is not rescinded by the mere exercise by an unpaid seller of his right of lien or stoppage in transit—True. [Section 54]
39. Notice of Re-sell—True/ False– Where the goods are of a perishable nature, or where the unpaid seller who has exercised right of lien or stoppage in transit gives notice to the buyer of his intention to re-sell, the unpaid seller may, if the buyer does not within a reasonable time pay or tender the price, re-sell the goods within a reasonable time—True. [Section 54]
40. Loss Recovery from Buyer—If the unpaid-seller has sold the goods after notice to the buyer and any loss has occurred due to such sale, the unpaid seller shall recover from the original buyer damages for any loss occasioned by his breach of contract—True. [Section 54]
41. No Profit on Notice of Re-sell—True/ False– If the unpaid-seller has sold the goods after notice to the buyer of his intention to re-sell, the buyer shall not be entitled to any profit which may occur on the re-sale—True. [Section 54]
42. Damages for Default on Notice—True/ False– If the unpaid-seller has sold the goods without notice to the buyer of his intention to re-sell, the buyer shall be entitled to any profit which may occur on the re-sale—True. [Section 54]
43. Subsequent Buyer—True/ False– Where an unpaid seller who has exercised his right of lien or stoppage in transit re-sells the goods, the buyer acquires a good title thereto as against the original buyer, notwithstanding that no notice of the re-sale has been given to the original buyer—True. [Section 54]
44. True/ False– Where the seller expressly reserves a right of re-sale in case the buyer should make default, and, on the buyer making default, re-sells the goods, the original contract of sale is thereby—Rescinded[Section 54]
45. True/ False– Where the seller expressly reserves a right of re-sale in case the buyer should make default, and, on the buyer making default, re-sells the goods, the original contract of sale is thereby rescinded. However, such rescission shall not debar the seller from claiming damages from purchaser—True. [Section 54]

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