Source: 1)c)4m,MTP1,Dec2023, 1)c)4m,MTP2,Dec2022, 1)c)4m,June20214 Marks
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Question Scenario

"Risk Prima Facie passes with property." Elaborate in the context of the Sales of Goods Act, 1930.

Estimated Writing Time: 7 mins Try in Practice Mode

Suggested Answer

Risk prima facie passes with property (Section 26 of the Sales of Goods Act, 1930) According to Section 26, unless otherwise agreed, the goods remain at the seller’s risk until the property therein is transferred to the buyer, but when the property therein is transferred to the buyer, the goods are at the buyer’s risk whether delivery has been made or not. It is provided that, where delivery has been delayed because of the fault of either buyer or seller, the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault. Provided also that nothing in this section shall affect the duties or liabilities of either seller or buyer as bailee of the goods of the other party.

Exam Strategy Tip

When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.

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