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    Question

    Under the Sale of Goods Act, 1930, Section 55, an unpaid

    seller has the right of stoppage in transit and resale. This right applies when goods are:
    A In possession of buyer Correct Answer Incorrect Answer
    B With carrier and buyer becomes insolvent Correct Answer Incorrect Answer
    C Delivered to buyer Correct Answer Incorrect Answer
    D Already paid for Correct Answer Incorrect Answer
    E Perishable goods only Correct Answer Incorrect Answer

    Solution

    Section 55 of the Sale of Goods Act grants unpaid sellers two powerful remedies: (1) right of stoppage in transit (when goods are with carrier and buyer becomes insolvent), and (2) right of resale. Stoppage in transit terminates carrier's possession, allowing goods reclamation before delivery completion, protecting sellers from buyer insolvency during transit.

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