If the seller refuses to take away the goods, the buyer becomes:a)Bailer of goodsb)Bailee of goodsc)Owner of goodsd)Dealer of goodsCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

- When the seller refuses to take back the goods, the buyer becomes a bailee.
- A bailee is an individual who temporarily holds or possesses goods or property belonging to another, with an obligation to return or dispose of them according to the terms of the contract.
- This role arises in situations where the seller does not reclaim goods, making the buyer responsible for their care, similar to holding them in trust for the seller.

Answer

I guess the words seller and buyer must be switched only then this question would make sense. And then the answer would be bailee because ownership would be with buyer now and if he keeps his goods with the seller, the seller has the obligation to return them to the buyer.

Answer

Explanation:

When the seller refuses to take away the goods, the buyer becomes the bailee of the goods. This means that the buyer now has temporary possession and control of the goods, but does not have legal ownership of the goods.

Definition of a Bailee:
A bailee is a person who is entrusted with the possession of goods by another person, known as the bailor, for a specific purpose. The bailee has a duty to take reasonable care of the goods and return them to the bailor once the purpose of the bailment has been fulfilled.

Reasoning:
In this scenario, the seller refuses to take away the goods, indicating that they do not want to retain possession of the goods. As a result, the buyer, who was originally the bailor, now becomes the bailee of the goods.

Implications:
1. Responsibility: As the bailee, the buyer is now responsible for the safekeeping and proper care of the goods. They must take reasonable measures to ensure that the goods are not damaged or lost during the period of bailment.
2. Return of Goods: The buyer must also be prepared to return the goods to the seller when requested. The buyer does not have the right to keep the goods indefinitely but must return them once the seller agrees to take them away.
3. Compensation: If the goods are damaged or lost while in the possession of the buyer, they may be held liable for compensation to the seller. The buyer may need to reimburse the seller for any loss or damage incurred.

Conclusion:
When the seller refuses to take away the goods, the buyer becomes the bailee of the goods. This means that the buyer has temporary possession and control of the goods, with the responsibility of taking care of them and returning them to the seller when requested.

Top Courses for CA FoundationView all

Quantitative Aptitude for CA Foundation

Accounting for CA Foundation

Business Laws for CA Foundation

Business Economics for CA Foundation

Mock Tests & Past Year Papers for CA Foundation

Top Courses for CA Foundation

Top Courses for CA Foundation

Related Content

CA Foundation Courses

Other Courses

How To Prepare?

Other Exams

Company