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Selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer is known as
  • a)
    distribution
  • b)
    appropriation
  • c)
    amortisation
  • d)
    storage
Correct answer is option 'B'. Can you explain this answer?
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Selection of goods with the intention of using them in performance of ...
Appropriation
Appropriation refers to the selection of goods with the intention of using them in the performance of a contract, and it requires the mutual consent of both the buyer and the seller. It is an important concept in contract law and is often used in commercial transactions.

Process of Appropriation
The process of appropriation involves the following steps:

1. Mutual Consent: Both the buyer and the seller must agree on the appropriation of goods. This means that they have reached an agreement on which specific goods will be used to fulfill the contract.

2. Intention to Use: The buyer must have the intention to use the appropriated goods in the performance of the contract. This means that the goods have a direct connection to the fulfillment of the contractual obligations.

3. Selection of Goods: The buyer selects the specific goods that will be used in the performance of the contract. This selection is based on the buyer's needs and requirements as well as the seller's ability to provide the goods.

4. Performance of Contract: Once the goods have been appropriated, the buyer can then use them to fulfill their contractual obligations. This may involve using the goods in the production of goods or providing services as specified in the contract.

5. Transfer of Ownership: Appropriation also involves the transfer of ownership of the goods from the seller to the buyer. This transfer of ownership signifies that the buyer now has the legal right to use and dispose of the goods.

6. Legal Consequences: Appropriation has legal consequences for both the buyer and the seller. The buyer becomes responsible for the goods and any risks associated with them. The seller, on the other hand, may be entitled to payment for the goods or other forms of consideration as agreed upon in the contract.

Importance of Appropriation
Appropriation is important because it ensures that both the buyer and the seller are on the same page regarding the goods that will be used in the performance of the contract. It provides clarity and certainty in commercial transactions, allowing both parties to proceed with confidence.

Furthermore, appropriation allows for the efficient allocation of resources. By selecting specific goods for the performance of the contract, the buyer can avoid unnecessary costs and ensure that the goods are suitable for their needs.

Appropriation also protects the rights of both parties. By transferring ownership of the goods, the seller ensures that they are compensated for their products, while the buyer gains the legal right to use the goods as intended.

In conclusion, appropriation is the process of selecting goods with the intention of using them in the performance of a contract, and it requires the mutual consent of the buyer and the seller. It is an important concept in contract law as it ensures clarity, efficiency, and protection of the rights of both parties involved in a commercial transaction.
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Selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer is known asa)distributionb)appropriationc)amortisationd)storageCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer is known asa)distributionb)appropriationc)amortisationd)storageCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer is known asa)distributionb)appropriationc)amortisationd)storageCorrect answer is option 'B'. Can you explain this answer?.
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