Question

When is the right to rescind the sale available to an unpaid seller?

Option 1: When the buyer changes the delivery address.
Option 2: When the buyer fails to pay for the goods.
Option 3: At the seller's discretion.
Option 4: Only before the goods are delivered to the buyer.

Answer 1

The right to rescind the sale is available to an unpaid seller typically when the buyer fails to pay for goods, as governed by the sale agreement and contract law.

Step-by-step explanation:

The right to rescind the sale is available to an unpaid seller when the buyer fails to pay for the goods. This is typically grounded in contract law, and the terms and conditions of the sale agreement between the seller and buyer would govern the ability to rescind. According to the Sales of Goods Act, the right of rescission is particularly relevant if the buyer goes into bankruptcy or liquidation, or if they breach the contract by not paying for the goods on time.

To reassure a possible buyer who is faced with imperfect information, a seller can:

1. Provide a comprehensive warranty or return policy.
2. Share testimonials and reviews from other satisfied customers.
3. Offer detailed product descriptions and disclose all relevant information about the product.

These actions can help build trust and provide the buyer with a sense of security regarding their potential purchase.