Skip to content

CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930

On 1 March, Anil agreed to sell to Bhavna a specific lot of 50 cartons of mangoes stored in his godown. Unknown to Anil, a fire had destroyed the entire lot on 28 February. What is the legal position under the Sale of Goods Act, 1930?

The contract is void. Where specific goods have, without the seller's knowledge, already perished or been so damaged that they no longer answer their description when the contract is made, the contract of sale is void by the Act.

  1. AThe contract is valid and Anil must supply similar mangoes
  2. BThe contract is voidable at Bhavna's option only
  3. CThe contract is valid, but Anil must pay damages for the delay
  4. DThe contract is void because the specific goods had perished at the time the contract was made without the seller's knowledgeCorrect

Explanation

Section 7 applies to a contract for specific goods that, without the seller's knowledge, had perished at the time the contract was made. Such a contract is void. It is not merely voidable, and no duty arises to supply substitute goods.

Did you get it right without looking?

One question tells you little. A timed set on Sale of Goods Act, 1930 shows your real accuracy, how long you take and where you lose marks.

Practise Sale of Goods Act, 1930Free diagnostic mock

More Sale of Goods Act, 1930 questions