CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930
Under the Sale of Goods Act, 1930, unless otherwise agreed, who bears the risk in the goods before the property in them is transferred to the buyer?
The seller bears the risk before the property passes. Under Section 26, unless the parties have agreed otherwise, goods remain at the seller's risk until ownership is transferred to the buyer. Risk follows property, not mere delivery or payment.
- AThe sellerCorrect
- BThe buyer
- CBoth equally
- DA carrier, if one is engaged
Explanation
Section 26 states that, unless otherwise agreed, the goods remain at the seller's risk until the property in them is transferred to the buyer. The buyer bears the risk only after the property passes, so the buyer option is wrong for the period before transfer.
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