An unpaid seller is a seller who has not been paid the full price for the goods that he has sold. In banking, the unpaid seller has certain rights that he can exercise to recover the unpaid balance.
The main rights of an unpaid seller in banking are as follows:
- Right to stop delivery: The unpaid seller has the right to stop delivery of the goods to the buyer if the buyer has not paid the full price.
- Right to resale the goods: The unpaid seller has the right to resell the goods if the buyer has not paid the full price and the goods are still in his possession.
- Right to claim damages: The unpaid seller can claim damages from the buyer for the loss that he has suffered as a result of the buyer’s failure to pay the full price.
Here are some MCQs on the rights of an unpaid seller in banking:
- Which of the following is a right of an unpaid seller in banking?
- The right to stop delivery of the goods.
- The right to resale the goods.
- The right to claim damages.
- All of the above.
- The answer is (d). All of the above are rights of an unpaid seller in banking.
- A seller sells goods to a buyer on credit. The buyer does not pay the full price. Can the seller stop delivery of the goods?
- Yes, the seller can stop delivery of the goods.
- No, the seller cannot stop delivery of the goods because the buyer has not yet taken delivery of the goods.
- The answer is (a). The seller can stop delivery of the goods even if the buyer has not yet taken delivery of the goods.
- A seller sells goods to a buyer on credit. The buyer does not pay the full price. The seller resells the goods. Can the seller claim damages from the buyer?
- Yes, the seller can claim damages from the buyer.
- No, the seller cannot claim damages from the buyer because he has already resold the goods.
- The answer is (a). The seller can still claim damages from the buyer even if he has already resold the goods.