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What are the consequences of “destruction of goods” under the Sale of Goods Act, 1930,
where the goods have been destroyed after the agreement to sell but before the sale is
affected.?
where the goods have been destroyed after the agreement to sell but before the sale is
affected.?
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What are the consequences of “destruction of goods” under the Sale of ...
Consequences of Destruction of Goods under the Sale of Goods Act, 1930
1. Agreement to Sell vs. Sale
When goods are destroyed after an agreement to sell has been made but before the actual sale takes place, certain consequences arise as per the Sale of Goods Act, 1930.
2. Seller's Responsibility
According to the Act, the seller is responsible for the goods until the property in the goods is transferred to the buyer. Therefore, if the goods are destroyed before the sale is completed, the seller bears the risk.
3. Buyer's Options
In case of destruction of goods before the sale is affected, the buyer has the following options:
- The buyer can treat the agreement as void, and the contract is rescinded.
- The buyer can choose to claim damages for the breach of contract.
- If the buyer has already paid for the goods, they are entitled to a refund.
4. Exception for Specific Goods
If the goods were identified and specifically set aside for the buyer at the time of the agreement, the risk passes to the buyer even if the goods are destroyed before the sale is completed.
5. Conclusion
In conclusion, the consequences of the destruction of goods under the Sale of Goods Act, 1930, depend on whether the sale was completed or not at the time of destruction. The Act provides protection to both the buyer and the seller in such situations.
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What are the consequences of “destruction of goods” under the Sale of Goods Act, 1930,where the goods have been destroyed after the agreement to sell but before the sale isaffected.?
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What are the consequences of “destruction of goods” under the Sale of Goods Act, 1930,where the goods have been destroyed after the agreement to sell but before the sale isaffected.? 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 What are the consequences of “destruction of goods” under the Sale of Goods Act, 1930,where the goods have been destroyed after the agreement to sell but before the sale isaffected.? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are the consequences of “destruction of goods” under the Sale of Goods Act, 1930,where the goods have been destroyed after the agreement to sell but before the sale isaffected.?.
What are the consequences of “destruction of goods” under the Sale of Goods Act, 1930,where the goods have been destroyed after the agreement to sell but before the sale isaffected.? 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 What are the consequences of “destruction of goods” under the Sale of Goods Act, 1930,where the goods have been destroyed after the agreement to sell but before the sale isaffected.? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are the consequences of “destruction of goods” under the Sale of Goods Act, 1930,where the goods have been destroyed after the agreement to sell but before the sale isaffected.?.
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