Question

4. Which of the following is the situation
wherein a seller of goods is not deemed to
be unpaid? *
(0.5 Points)
The price must be due but not
paid
A negotiable instrument, like
cheque, bill of exchange etc., was
received, but the same has been
dishonored
A negotiable instrument, like
cheque, bill of exchange etc., was
received and the same has been
honored
Seller must have an immediate
right of action for the price.​

Answer 1

Answer:

The Sale of Goods Act, 1930 (hereinafter referred to as the "Act") defines an unpaid seller as a seller that has not been paid the full price of the goods that have been sold or that has received a bill of exchange or other negotiable instrument as conditional payment, and the condition on which it was received has not been fulfilled.1

Interestingly, the position of the seller's agent may sometimes be akin to that of the seller insofar as exercising the rights of an unpaid seller are concerned.