Akash purchased 100 Kgs of wheat from Bhaskar at 80 per kg. Bhaskar says that wheat is in his warehouse in the custody of Kishore, the warehouse…

CA Foundation · Business Laws · RTP · September 2024
Akash purchased 100 Kgs of wheat from Bhaskar at 80 per kg. Bhaskar says that wheat is in his warehouse in the custody of Kishore, the warehouse keeper. Kishore conf irmed to Akash that he can take the delivery of wheat from him and till then he is holding wheat on Akash’s behalf. Before Akash picks the goods from warehouse, the whole wheat in the warehouse has flowed in flood. Now Akash wants his price on the contention that no delivery has been done by seller. Whether Akash is right with his views under the Sale of Goods Act, 1930.

Suggested Answer and Working Notes:

As per the provisions of the Sale of Goods Act,1930 there are three modes of delivery, (i) Actual delivery, (ii) Constructive delivery and (iii) Symbolic delivery. When delivery is affected without any change in the custody or actual possession of the things, it is called constructive delivery or delivery by acknowledgement. Constructive delivery takes place when a person in possession of goods belonging to the seller acknowledges to the buyer that he is holding the goods on buyer’s behalf. On the basis of the above provisions and facts, it is clear that possession of the wheat has been transferred through constructive delivery. Hence, Akash is not right. He cannot claim the price back.

Topics: The Sale of Goods Act, 1930

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