CA Foundation · Business Laws · The Sale of Goods Act, 1930
Dev sold 100 tonnes of coal to Harsh, to be delivered at Harsh's factory in Nagpur. Dev handed over 100 tonnes to a carrier at Dev's mine in Dhanbad, without informing Harsh and making no contract with the carrier that is reasonable in view of the nature of the goods. The coal was damaged in transit. Which statement is correct under the Sale of Goods Act, 1930?
Delivery to a carrier is prima facie delivery to the buyer, but the seller must make a reasonable contract with the carrier. Because Dev did not, Harsh may refuse to treat the carrier delivery as delivery to himself or hold Dev liable for the transit damage.
- ARisk passed to Harsh on delivery to the carrier, so Harsh must bear the loss in every case
- BDelivery to a carrier is prima facie delivery to the buyer, but Harsh may decline to treat it as delivery to him and may hold Dev responsible for damage during transit, because Dev failed to make a reasonable contract with the carrier or to notify HarshCorrect
- CHarsh must pay the price and has no remedy against anyone
- DThe contract is void as delivery was at a place other than that agreed
Explanation
Delivery to a carrier for transmission to the buyer is prima facie delivery to the buyer. But the seller must make a reasonable contract with the carrier, and if he does not, the buyer may decline to treat the delivery as delivery to himself or hold the seller responsible for damage in transit. Where the goods are sent by a route involving sea risk, the seller must also give notice to the buyer so that he can insure. Option 0 ignores the seller's duty. Option 2 ignores the buyer's remedy.
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