[amp_mcq option1=”Where goods have been sold without any stipulation regarding credit” option2=”Where the goods have been sold on credit but the term of the credit has expired” option3=”Where the buyer becomes insolvent” option4=”Where the goods have been sold on credit but the term of credit has not expired” correct=”option3″]<\/p>\n
The correct answer is: C. Where the buyer becomes insolvent<\/strong>.<\/p>\n A lien is a legal right to retain possession of goods until a debt is paid. An unpaid seller can exercise a lien on goods in his possession if the following conditions are met:<\/p>\n If the buyer becomes insolvent, the seller may still be able to exercise a lien on the goods, but it will be more difficult. This is because the buyer’s creditors may have a claim to the goods. The seller will need to prove that he has a valid lien on the goods and that the buyer’s creditors do not have a superior claim.<\/p>\n In the other options, the unpaid seller can exercise the right of lien on goods in his possession.<\/p>\n [amp_mcq option1=”Where goods have been sold without any stipulation regarding credit” option2=”Where the goods have been sold on credit but the term of the credit has expired” option3=”Where the buyer becomes insolvent” option4=”Where the goods have been sold on credit but the term of credit has not expired” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[704],"tags":[],"class_list":["post-34557","post","type-post","status-publish","format-standard","hentry","category-legal-aspects-of-business","no-featured-image-padding"],"yoast_head":"\n\n
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