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CA Foundation · Business Laws · The Sale of Goods Act, 1930

Mohan agrees to sell 'all 40 sacks of wheat in his godown' to Zoya at Rs 2,000 per sack. The wheat must be weighed by Mohan to fix the price, though the sacks are ready for delivery. Mohan begins weighing on Monday but is yet to finish, and on Tuesday a fire destroys the sacks. Who bears the loss?

Mohan bears the loss. Where the seller has to weigh or measure the specific goods to fix the price, property does not pass until that is done and the buyer is notified. Since weighing was unfinished, ownership and risk stayed with Mohan.

  1. AZoya, as the goods were specific and in a deliverable state
  2. BMohan, as property had not passed because weighing to ascertain price was incompleteCorrect
  3. CBoth equally
  4. DZoya, because she had agreed to buy

Explanation

Where the seller must weigh, measure or test goods to ascertain the price, property does not pass until that act is done and the buyer has notice of it. Weighing was incomplete, so property remained with Mohan and risk follows property. Option one ignores this rule.

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