Skip to content

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

Ravi agrees to sell to Meena a specific lot of 100 bags of rice lying in his godown. Unknown to Ravi, a fire had destroyed the entire lot before the agreement was made. What is the legal position?

The contract is void. Where specific goods have, without the seller's knowledge, perished at the time the contract was made, the Act declares the contract void, so neither party can enforce it and Ravi has no duty to supply other rice.

  1. AThe contract is valid and Ravi must supply similar rice
  2. BThe contract is voidable at Meena's option
  3. CThe contract is void because the specific goods had perished at the time of contractCorrect
  4. DThe contract is valid but Meena must bear the loss

Explanation

Section 7 provides that a contract for the sale of specific goods is void if, without the seller's knowledge, the goods have perished at the time the contract was made. Ravi did not know, so the contract is void, not voidable.

Did you get it right without looking?

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

Practise Elements of Law relating to Sale of GoodsFree diagnostic mock

More Elements of Law relating to Sale of Goods questions