The Institute of Science, Pune (the buyer), placed an order for various chemicals worth - 1,50,000 from a supplier in Delhi (the seller). The buyer…

Delivery of the goods to the carrier [Section 23 (2) of the Sale of Goods Act,1930]: Where, in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier or other bailee (whether named by the buyer or not) for the purpose of transmission to the buyer, and does not reserve the right of disposal, he is deemed to have unconditionally appropriated the goods to the contract. In the instant case, the Institute of Science, Pune placed an order for various chemicals worth - 1,50,000 from a supplier in Delhi. The seller dispatched the consignment via a courier without reserving any right of disposal over the goods. The consignment was lost in transit. According to Section 23 (2) , it is an unconditional appropriation of goods because of which the Institute of Science, Pune (buyer) has become the owner of the goods. Therefore, it will bear the risk of loss of the consignment in the way. Hence, the buyer’s claim is not valid.