SALE OF GOODS ACT, 1930 | LEGAL ASPECTS OF BUSINESS | NTA UGC NET COMMERCE 2020 OCT

The meaning of unpaid seller is

• The person who has not paid the price
• The person who has sold the goods & received the price
• The person who has sold the goods & has not yet received the price
• The person who has not sold the goods

Ans: (c)

An Unpaid seller is a person who sells out a property he owns or the property of the principal, co-owner and does not get paid for that sale from the buyer.

A seller is deemed to be an unpaid seller if:

1. When the whole of the price is not paid to him.
2. A part of a price yet to be paid.
3. When a bill of exchange or other negotiated instrument has been received as conditional payment and therefore the condition on which it had been received has not been fulfilled by reason of dishonor of the instrument or otherwise.