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

Ravi agrees to sell to Meena a specific antique vase lying in his shop. Unknown to Ravi, the vase had been smashed by a fire an hour before the contract was made, so it no longer answers its description. What is the legal position under the Sale of Goods Act, 1930?

The contract is void. Where a contract is for specific goods and they have, without the seller's knowledge, perished or become so damaged at the time of contract that they no longer answer their description, the Act declares the contract void.

  1. AThe contract is void because the goods had perished without the seller's knowledge when the contract was madeCorrect
  2. BThe contract is valid and Ravi must supply a similar vase
  3. CThe contract is voidable at the option of Ravi only
  4. DThe contract is valid but Meena must bear the loss as the buyer

Explanation

Section 7 says that where specific goods, without the seller's knowledge, have perished or become so damaged at the time of the contract that they no longer answer their description, the contract is void. Treating it as valid with a substitute is wrong because the goods were specific.

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