Question
Under the Sale of Goods Act, 1930, Section 50, the right
of stoppage in transit can be exercised by an unpaid seller when:Solution
Section 50 of the Sale of Goods Act, 1930, provides that when the buyer becomes insolvent, the unpaid seller who has parted with possession of goods has the right to stop them in transit, meaning the seller may resume possession as long as goods remain in transit. This right protects the seller's interests when the buyer's financial condition deteriorates after goods leave the seller's possession but before delivery completion.
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