What is an unpaid seller?
A. A seller who has not received payment for their goods or services
B. A seller who refuses to accept payment for their goods or services
C. A seller who has already been paid for their goods or services
Answer: A
Answer Explanation:
A seller who has not received payment for their goods or services is an unpaid seller. An unpaid seller is a term used to describe a seller who has delivered goods or services to a buyer, but has not yet received payment for those goods or services. Various factors can contribute to this, including the buyer’s inability or unwillingness to pay, a disagreement about the quality or quantity of the goods or services delivered, or a disagreement over the terms of the sale.
Unpaid sellers have certain legal rights to protect their interests and ensure that they are paid for the goods and services they have provided. These rights include the right to a lien, the right to stoppage in transit, and the right to resale.
Unpaid sellers have the right to retain possession of the goods until they are paid for. This is especially useful in situations where the buyer has taken possession, but has not yet paid. As long as the seller receives payment, or until mutually acceptable arrangements are reached, they can hold onto the goods.
When an unpaid seller stops the goods in transit and demands payment from the buyer, the goods are deemed to be stopped in transit. The buyer has the right to exercise this right if the goods have been sold and are being delivered to him, but he has not yet paid for them. Sellers can use this to ensure that the buyer pays before goods are delivered if they become aware of the buyer’s financial difficulties.
In the event that the buyer fails to pay for the goods, the seller has the right to resell them to a third party. In order to exercise this right, certain conditions must be met, such as the goods being perishable or the seller having notified the buyer of their intention to resell them.
Unpaid sellers are not entitled to absolute rights, and certain limitations apply to their rights. It is only possible to exercise the right of resale in good faith and for a reasonable price if the seller has made a reasonable effort to contact the buyer and obtain payment.
Unpaid sellers’ rights can also be affected by the terms of the sale agreement. It is possible for the seller’s rights to be limited if the agreement contains specific provisions regarding payment and delivery. To protect their interests in cases of nonpayment, sellers should ensure that their sales agreements include clear and enforceable payment terms.
Unpaid sellers constitute a major issue in the world of commerce and trade. In order to protect their interests in the event of non-payment, sellers must understand their rights under law. Unpaid sellers can prevent financial losses and other negative consequences that may result from non-payment by exercising their rights of lien, stoppage in transit, and resale.
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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