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
Source: 1)c)4m,MTP1,Dec2023, 1)c)4m,MTP2,Dec2022, 1)c)4m,June20214 Marks
Back to Law List Suggested Answer
1. Provisions of the Act / Applicable Law
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.
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.
2. Analysis & Application of Facts
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.
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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