Section 42

According to Section 42 of the Sale of Goods Act, 1930, 'the seller of goods is deemed to be an unpaid seller within the meaning of this Act - (a) when the whole of the price has not been paid or tendered; (b) when a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise. (2) In this Act, the term 'seller' includes any person who is in the position of a seller, as, for instance, an agent of the seller to whom the bill of lading has been indorsed, or a consignor or agent who has himself paid, or is directly responsible for, the price.' This section defines the status of an unpaid seller, outlining the conditions under which a seller is considered unpaid, including when the full price has not been paid or when a negotiable instrument received as payment is dishonoured.