Question

    Under Section 43 of the Sale of Goods Act, 1930, the

    seller's lien (right to retain goods):
    A Is lost once the buyer takes possession, even if payment is not made Correct Answer Incorrect Answer
    B Exists only if payment and delivery occur simultaneously Correct Answer Incorrect Answer
    C Can be retained even after delivery Correct Answer Incorrect Answer
    D Is lost if the seller delivers goods on credit Correct Answer Incorrect Answer
    E Cannot be exercised over goods shipped by railway Correct Answer Incorrect Answer

    Solution

    Section 43 provides that the seller has a lien on goods while they are in their possession, but only while the price remains unpaid and no credit has been given. If the seller agrees to sell on credit, the lien is lost. Section 47 provides that the lien is also lost once the goods are delivered. However, the seller retains the right of stoppage in transit if the goods are in transit. [Citation: Sections 43-47, Sale of Goods Act, 1930]

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