Question

The right of lien allows an unpaid seller to __________.

• A. Take legal action for damages
• B. Retain possession of the goods until payment
• C. Repossess the goods from the buyer
• D. Sell the goods to another buyer

Hint:

The right of lien is an important protection for sellers in case of non-payment. It allows them to hold onto goods until they receive their due payment.

Answer 1

The Correct Option is B

We will solve this step-by-step:

1. The right of lien is a legal concept that applies to a seller in a contract for the sale of goods.
2. This right allows an unpaid seller to retain possession of goods even after the sale has taken place, but the goods have not been paid for by the buyer.
3. It is important to note that the seller does not transfer possession of the goods to the buyer until full payment is made.
4. This right ensures that the seller is protected from non-payment. If the buyer fails to pay, the seller has the right to keep the goods until the outstanding amount is paid.
5. The other options, such as taking legal action or selling the goods to another buyer, do not apply to the specific legal right of lien.

Thus, the correct answer is to retain possession of the goods until payment.