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If the goods of contract under sale are destroyed immediately after the agreement, the loss is to be borne by
- a)the seller
- b)the seller and buyer jointly
- c)the person having possession of goods
- d)the buyer, even if the goods may or may not be in his possession
Correct answer is option 'D'. Can you explain this answer?
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If the goods of contract under sale are destroyed immediately after th...
Loss of goods under a sale contract
In a sale contract, when the goods are destroyed immediately after the agreement, the question arises as to who bears the loss. The answer to this question is provided by the Sale of Goods Act, 1930, which governs the sale of goods in India.
Explanation:
When the goods are destroyed after the agreement but before the ownership is transferred to the buyer, the general rule is that the loss is to be borne by the seller. However, there is an exception to this rule.
Doctrine of Caveat Emptor:
The doctrine of caveat emptor, which means "let the buyer beware," places the responsibility on the buyer to examine the goods before the purchase. Once the buyer has accepted the goods, the ownership is transferred, and the risk of loss also passes to the buyer.
Exception to the rule:
In the case of goods that are destroyed immediately after the agreement, the loss is to be borne by the buyer, even if the goods may or may not be in his possession. This exception is based on the principle that the buyer should not suffer a loss for a transaction that has not yet been completed.
Reasoning:
The reasoning behind this exception is that when goods are destroyed immediately after the agreement, the seller has not yet fulfilled his obligation to deliver the goods. Therefore, the buyer should not bear the risk of loss until the seller has fulfilled his obligation.
Example:
For example, suppose a buyer agrees to purchase a specific car from a seller, and immediately after the agreement, the car is destroyed in a fire at the seller's premises. In this case, the buyer would bear the loss because the ownership of the car has not yet been transferred to him.
Conclusion:
In conclusion, when the goods under a sale contract are destroyed immediately after the agreement, the loss is to be borne by the buyer, even if the goods may or may not be in his possession. This exception is based on the principle that the buyer should not suffer a loss for a transaction that has not yet been completed.
In a sale contract, when the goods are destroyed immediately after the agreement, the question arises as to who bears the loss. The answer to this question is provided by the Sale of Goods Act, 1930, which governs the sale of goods in India.
Explanation:
When the goods are destroyed after the agreement but before the ownership is transferred to the buyer, the general rule is that the loss is to be borne by the seller. However, there is an exception to this rule.
Doctrine of Caveat Emptor:
The doctrine of caveat emptor, which means "let the buyer beware," places the responsibility on the buyer to examine the goods before the purchase. Once the buyer has accepted the goods, the ownership is transferred, and the risk of loss also passes to the buyer.
Exception to the rule:
In the case of goods that are destroyed immediately after the agreement, the loss is to be borne by the buyer, even if the goods may or may not be in his possession. This exception is based on the principle that the buyer should not suffer a loss for a transaction that has not yet been completed.
Reasoning:
The reasoning behind this exception is that when goods are destroyed immediately after the agreement, the seller has not yet fulfilled his obligation to deliver the goods. Therefore, the buyer should not bear the risk of loss until the seller has fulfilled his obligation.
Example:
For example, suppose a buyer agrees to purchase a specific car from a seller, and immediately after the agreement, the car is destroyed in a fire at the seller's premises. In this case, the buyer would bear the loss because the ownership of the car has not yet been transferred to him.
Conclusion:
In conclusion, when the goods under a sale contract are destroyed immediately after the agreement, the loss is to be borne by the buyer, even if the goods may or may not be in his possession. This exception is based on the principle that the buyer should not suffer a loss for a transaction that has not yet been completed.
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If the goods of contract under sale are destroyed immediately after the agreement, the loss is to be borne bya)the sellerb)the seller and buyer jointlyc)the person having possession of goodsd)the buyer, even if the goods may or may not be in his possessionCorrect answer is option 'D'. Can you explain this answer?
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If the goods of contract under sale are destroyed immediately after the agreement, the loss is to be borne bya)the sellerb)the seller and buyer jointlyc)the person having possession of goodsd)the buyer, even if the goods may or may not be in his possessionCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If the goods of contract under sale are destroyed immediately after the agreement, the loss is to be borne bya)the sellerb)the seller and buyer jointlyc)the person having possession of goodsd)the buyer, even if the goods may or may not be in his possessionCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the goods of contract under sale are destroyed immediately after the agreement, the loss is to be borne bya)the sellerb)the seller and buyer jointlyc)the person having possession of goodsd)the buyer, even if the goods may or may not be in his possessionCorrect answer is option 'D'. Can you explain this answer?.
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