Question Scenario
What is appropriation of goods under the Sale of Goods Act, 1930? State the essentials regarding appropriation of unascertained goods.
Estimated Writing Time: 7 mins Try in Practice Mode
Source: 1)c)4m,Dec2019, 4)a)6m,June20184 Marks
Back to Law List Suggested Answer
1. Provisions of the Act / Applicable Law
Appropriation of goods: Appropriation of goods involves selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer.
(a) There is a contract for the sale of unascertained or future goods.
(d) The goods must be unconditionally (as distinguished from an intention to appropriate) appropriated to the contract either by delivery to the buyer or his agent or the carrier.
2. Analysis & Application of Facts
The essentials regarding appropriation of unascertained goods are:
(b) The goods should conform to the description and quality stated in the contract.
(c) The goods must be in a deliverable state.
(e) The appropriation must be made by: (i) the seller with the assent of the buyer; or (ii)
(f) the buyer with the assent of the seller. The assent may be express or implied.
(g) The assent may be given either before or after appropriation.
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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