Skip to content

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

Under an agreement to sell specific goods, the goods, without any fault of the seller or buyer, perish before the risk passes to the buyer. Which statement is correct as per the Sale of Goods Act, 1930?

The agreement is avoided. Where specific goods under an agreement to sell perish, without fault of seller or buyer, before the risk passes to the buyer, the Act says the agreement is thereby avoided, and neither side can insist on performance.

  1. AThe agreement is thereby avoidedCorrect
  2. BThe agreement continues and the seller must deliver substitute goods
  3. CThe buyer must pay the price since the agreement was made
  4. DThe agreement is void from the beginning as if never made

Explanation

Section 8 provides that where there is an agreement to sell specific goods and they subsequently perish without fault of either party before the risk passes to the buyer, the agreement is thereby avoided. It is not void ab initio, since the goods existed at the time of agreement.

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