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In case of an agreement to sell, subsequent loss or destruction of the goods is the liability of __________:
- a)The buyer
- b)The seller
- c)Both the buyer and seller
- d)The Insurance Company
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
In case of an agreement to sell, subsequent loss or destruction of the...
Liability in case of Agreement to Sell
Introduction:
An agreement to sell is a contract between a seller and a buyer where the seller agrees to sell the goods to the buyer at a future date or time. In case of an agreement to sell, the ownership of the goods still remains with the seller until the goods are actually delivered to the buyer.
Liability in case of Loss or Destruction of Goods:
If the goods covered under the agreement to sell are lost or destroyed before the delivery, the liability falls on the seller. The seller is responsible for any loss or damage to the goods until they are delivered to the buyer.
Reason for Liability on Seller:
The reason for this is that the seller still owns the goods until they are delivered to the buyer. Hence, it is the seller's responsibility to ensure that the goods are safe and secure until they are delivered to the buyer. If the goods are lost or destroyed due to the seller's negligence, the seller will be held liable.
Insurance:
However, if the seller has insured the goods, the insurance company will compensate the seller for the loss or damage to the goods. In this case, the liability does not fall on the seller but on the insurance company.
Conclusion:
In conclusion, in case of an agreement to sell, the liability for any loss or destruction of the goods falls on the seller until the goods are actually delivered to the buyer. If the seller has insured the goods, the liability falls on the insurance company.
Introduction:
An agreement to sell is a contract between a seller and a buyer where the seller agrees to sell the goods to the buyer at a future date or time. In case of an agreement to sell, the ownership of the goods still remains with the seller until the goods are actually delivered to the buyer.
Liability in case of Loss or Destruction of Goods:
If the goods covered under the agreement to sell are lost or destroyed before the delivery, the liability falls on the seller. The seller is responsible for any loss or damage to the goods until they are delivered to the buyer.
Reason for Liability on Seller:
The reason for this is that the seller still owns the goods until they are delivered to the buyer. Hence, it is the seller's responsibility to ensure that the goods are safe and secure until they are delivered to the buyer. If the goods are lost or destroyed due to the seller's negligence, the seller will be held liable.
Insurance:
However, if the seller has insured the goods, the insurance company will compensate the seller for the loss or damage to the goods. In this case, the liability does not fall on the seller but on the insurance company.
Conclusion:
In conclusion, in case of an agreement to sell, the liability for any loss or destruction of the goods falls on the seller until the goods are actually delivered to the buyer. If the seller has insured the goods, the liability falls on the insurance company.
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Community Answer
In case of an agreement to sell, subsequent loss or destruction of the...
Answer will be B because ownership and risk goes hand-in-hand and in agreement to sale the ownership is still with Seller.
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In case of an agreement to sell, subsequent loss or destruction of the goods is the liability of __________:a)The buyerb)The sellerc)Both the buyer and sellerd)The Insurance CompanyCorrect answer is option 'B'. Can you explain this answer?
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