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

Under the Sale of Goods Act, 1930, where a seller delivers goods to a carrier for transmission to the buyer in pursuance of the contract and does not reserve the right of disposal, the seller is deemed to have:

The seller is deemed to have unconditionally appropriated the goods to the contract. When goods are delivered to a carrier for transmission to the buyer and the right of disposal is not reserved, the Act treats this delivery as unconditional appropriation, so property can pass to the buyer.

  1. Aunconditionally appropriated the goods to the contractCorrect
  2. Bconditionally appropriated the goods to the contract
  3. Cretained property until the buyer pays the price
  4. Dmade only an agreement to sell

Explanation

Section 23(2) provides that delivery to a carrier or other bailee for transmission to the buyer, without reserving the right of disposal, is deemed unconditional appropriation of the goods to the contract. The option of conditional appropriation is wrong because no right of disposal was reserved.

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