As per section 2 sub-section 8, of the Sales of Goods Act, insolvent means a person_________________?
Correct answer: C. Both A and B
- A. Who has ceased to pay his debts in the ordinary course of business
- B. Or can not pay his debts as they become due
- C. Both A and B
- D. None of above
Explanation
Section 2(8) treats a person as insolvent when the person has ceased paying debts in the ordinary course of business or cannot pay them as they become due. Both alternatives therefore fall within the definition.
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Civil law governs disputes involving private rights, including contracts, property, family relations, torts and compensation. The subject explains breach of duty, civil liability, damages, specific relief, injunctions and other remedies, while distinguishing private claims between individuals from criminal proceedings brought to punish offences against the state.
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