Sales of Goods Act- Effect of Perishing Goods

Effects of perishing Goods

Assume, you have contract to buy horse from Mr Mallya. You made a contract. Now at the time of making contract, Horse died in stable which Mr Mallya don't know. Now what ? Will you get money back ? Will Mr Mallya get money because he didn't know whether Horse died or not ?


These questions are answered in section 7.

Section 7 states as below
Where there is a contract for sale of specific goods, the contract is void if the goods without the knowledge of the seller have at the time when the contract was made, perished or become so damaged as no longer to answer to their description in the contract

When subject matter of contract is destroyed, performance of contract becomes impossible and hence contract becomes void. In above example, you have selected horse, but it died without the fault of seller and he cannot bring that horse back to life.

Similarly say you ordered 1 ton of Bananas. Monkey had destroyed Bananas beyond recognition or to which they don't answer the description that they are Banana, in this case too contract will be void.

Take another example of Contract of Selling 100 bags of sugar. If there is heavy rain and water logged in godown, suger will be destroyed, in this case also contract will be void.

In these scenarios if any party received any benefit, it has to be restored.

Section 8 

It deals with agreement to sell. In agreement to sell, parties agree for delivery in future. In such cases if subject matter is destroyed without any fault of seller or buyer, contract can be voided. 

Where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided.


So to conclude, if subject matter or goods get perished, contract is void if contract is in specific goods, it's voidable if it's in future good or in case of agreement to sell.


Legalfundaa

Comments

Post a Comment

Followers

Popular posts from this blog

Privileges and Immunities to Administration in Suits

Introduction You know government can enter into contracts. Government can start some business. It mean government can sue other people, or you can sue the government. Before you initiate a legal proceedings against government, or even after legal proceedings are initiated, there are some relaxations to government.( OK, we will use Government/Administration as per our discretion interchangeably in this post, but they will mean the same ). So, it might happen that to prove something you may need a document or evidence, but government may be given exemption to produce evidence in that regard. Let's take one example.  General law is that burden of proof is on prosecution. Meaning, the one who accuses other  needs to prove the crime/offence by other. But when government accuses you of Sedition, you have to prove your innocence, burden of proof is on YOU. This is scary, as many times government in power just accuses people of sedition who opposes their ideas/policies, and put oppone...
Read more

Legal History-Administration of Justice in Bombay (1668-1726)

Image
Story About Bombay In 1534, Portuguese acquired Bombay from Local Hindu Raja. Then Bombay was given to King Charles II as dowry in his sister's marriage to in 1661. In 1668 Bombay was given to rent to East India Company for a rent of 10  £ . By today's exchange it would be around 100 Rs. So  yes, Bombay was given on rent to East India Company for the price of 10 Vada-Pav. Administration of Bombay was subordinate to Surat back then. After renting it, company issued a charter in 1668 granting company some rights to make laws to deal with Bombay. Like Administration in Madras, development of Earlier administration could be studied in 3 stages. First Stage: 1670-1683 (Aungier Eara) During this period Bombay was subordinated to Surat. The Governor of Surat was ex-officio Governor of Bombay, though Bombay had Deputy Governor and Council. Gerald Aungier brought some changes in Administration of justice. Two plans, i.e plan of 1670 and plan of 1672 made progress in so...
Read more

Overview of Appeal in CrPC

Image
Introduction Here is the simplistic hierarchy of the Courts. (JMFC stands for Judicial Magistrate of First Class) Not so serious cases are tackled by Lower courts. Serious cases are tackled by Sessions court.  We humans are not Gods. Courts are presided by humans and its possible that they can make a mistake. They should be remedy to people when courts commits  mistake. One of such remedy is Appeals. Remember this one, you don't have right of Appeal in all the cases even if you feel Court had committed some mistake. Criminal Procedure Code gives a right to appeal in specific circumstance.  CrPC provides circumstance when you CANNOT appeal. Apart from CrPC, constitution also have certain provisions related to Appeal. Specific laws like NIA Act, UAPA Act etc have provided separate procedure of Appeal.   In this post we will cover below things When you CANNOT appeal ? Who can appeal and for What purpose ? Appeals to Sessions Court Appeals to High Court Appeals to Suprem...
Read more