Question
Legal Studies Question on Company Law
M sells certain goods to N of Punjab. The goods are handed over to the railways for transmission to N. In the meantime, N sells the goods to a third party R for consideration without the consent of M. N becomes insolvent. In this case
A
M has lost his right of stoppage in transit
B
M has the right of stoppage in transit
C
Station Master has the right of stoppage in transit
D
None of the above
Answer
M has the right of stoppage in transit
Explanation
Solution
The correct option is (B): M has the right of stoppage in transit.