CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods
Sharma Traders in Indore contracts to sell 200 bags of a specified grade of wheat to Gupta Mills in Kanpur. Sharma delivers 200 bags of that grade, in deliverable state, to a carrier for transmission to Gupta, without reserving the right of disposal. What is the legal position?
Sharma is deemed to have unconditionally appropriated the goods, because delivery to a carrier for transmission to the buyer without reserving the right of disposal amounts to appropriation, whether or not the buyer named the carrier.
- ASharma is deemed to have unconditionally appropriated the goods to the contractCorrect
- BNo appropriation occurs until Gupta pays the price
- CNo appropriation occurs until the goods physically reach Kanpur
- DAppropriation occurs only if Gupta named the carrier
Explanation
Under Section 23(2), delivery to a carrier for transmission to the buyer, without reserving the right of disposal, is deemed unconditional appropriation, whether or not the buyer named the carrier. Hence waiting for arrival, payment or buyer's naming of the carrier is not required.
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