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X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to  Y?
  • a)
    No
  • b)
    Yes
  • c)
    Z has to return directly
  • d)
    None of the above
Correct answer is 'A'. Can you explain this answer?
Verified Answer
X purchased papers from Y and resold them to Z, who found that the pap...
The seller can always claim the benefit of doctrine of Caveat Emptor i.e. let the buyer be aware.At the time of purchasing goods from X, Z pointed out that they were infected with white ants so Z can return them to X as he had beenbeware and diligent.On the other hand X had already purchased the goods from Yand did not make any complain about the papers being infected .Therefore, X cannot now return the goods to Y.
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X purchased papers from Y and resold them to Z, who found that the pap...
Answer:

Background:
X purchased papers from Y and resold them to Z. However, Z discovered that the papers were infected with white ants and returned them to X. The question is whether X can return the goods to Y.

Explanation:
In this scenario, X acts as an intermediary between Y and Z. X purchased the papers from Y and resold them to Z. However, since Z found that the papers were infected with white ants, Z rightfully returned the papers to X.

The principle of "passing of property":
In order to understand whether X can return the goods to Y, we need to consider the principle of "passing of property." This principle determines when the ownership of goods is transferred from the seller to the buyer.

According to the principle of "passing of property," if the ownership of goods has already been transferred from Y to X, then X cannot return the goods to Y. However, if the ownership of goods has not yet been transferred from Y to X, then X can return the goods to Y.

Application of the principle:
In this case, X purchased the papers from Y and resold them to Z. The fact that X resold the papers to Z indicates that the ownership of the papers was transferred from Y to X. Therefore, X cannot return the goods to Y because the ownership has already been transferred.

Conclusion:
Based on the principle of "passing of property," X cannot return the goods to Y. Once the ownership of goods has been transferred from the seller to the buyer, the buyer assumes the responsibility for the goods and any subsequent issues, such as the presence of white ants. Therefore, X should either resolve the issue with Z or compensate Z for the infected papers.
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Community Answer
X purchased papers from Y and resold them to Z, who found that the pap...
No because there will be no agreement between X and y
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X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to Y?a)Nob)Yesc)Z has to return directlyd)None of the aboveCorrect answer is 'A'. Can you explain this answer?
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X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to Y?a)Nob)Yesc)Z has to return directlyd)None of the aboveCorrect answer is 'A'. 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 X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to Y?a)Nob)Yesc)Z has to return directlyd)None of the aboveCorrect answer is 'A'. 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 X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to Y?a)Nob)Yesc)Z has to return directlyd)None of the aboveCorrect answer is 'A'. Can you explain this answer?.
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