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CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods

Anita agrees to sell to Bharat a specific painting kept in her studio, for delivery next month. Before the risk passes to Bharat, and without fault of either party, the painting is destroyed in a flood. Which statement is correct under the Sale of Goods Act, 1930?

The agreement is avoided. Under Section 8, when specific goods perish after an agreement to sell, without fault of either party and before the risk passes to the buyer, the agreement is thereby avoided. Neither party can enforce it afterwards.

  1. AThe agreement is avoidedCorrect
  2. BAnita must paint a similar picture
  3. CBharat must pay the price since the contract was made
  4. DThe agreement becomes voidable at Anita's option

Explanation

Section 8 provides that where there is an agreement to sell specific goods and the goods subsequently perish without fault of seller or buyer before the risk passes to the buyer, the agreement is avoided. Option C is wrong because the price is not payable when the agreement stands avoided.

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