Question

    According to the Sale of Goods Act, when is a seller deemed to be an "unpaid seller"?

    A When the buyer fails to take delivery of the goods Correct Answer Incorrect Answer
    B When the buyer disputes the quality of the goods received Correct Answer Incorrect Answer
    C When the seller refuses to provide a warranty for the goods Correct Answer Incorrect Answer
    D When the buyer delays the payment beyond the due date Correct Answer Incorrect Answer
    E When the whole of the price has not been paid or tendered to the seller Correct Answer Incorrect Answer

    Solution

    Section 45.   “Unpaid seller” defined: (1) The seller of goods is deemed to be an "unpaid seller" within the meaning of this Act— (a) when the whole of the price has not been paid or tendered; (b) 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.

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