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

Sharma Traders agrees to sell to Gupta Mills 500 specific, ready bags of rice lying in its godown at a rate per kg, and the seller must weigh the bags to ascertain the price. The weighing has not been done. Under the Act, the property in the goods:

Property does not pass until the seller has done the weighing and the buyer has notice of it. Where specific goods in a deliverable state need an act to ascertain the price, both the act and notice to the buyer are required before property passes.

  1. APasses only when the weighing is done and the buyer has notice of itCorrect
  2. BPasses immediately on making the contract
  3. CPasses when the buyer pays the first rupee
  4. DPasses when the seller has weighed the goods, even if the buyer has no notice

Explanation

Section 22 provides that where the seller must weigh, measure or test specific deliverable goods to ascertain the price, property does not pass until that act is done and the buyer has notice of it. Weighing without notice to the buyer is not enough, so the last option is wrong.

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