Ansari of Jaipur sold100smart TV set @50,000/- per set to Baburam of Delhi. He delivered the TV sets to Chetan, a transport carrier for transmission…

CA Foundation · Business Laws · PYQS · September 2024
Ansari of Jaipur sold100smart TV set @50,000/- per set to Baburam of Delhi. He delivered the TV sets to Chetan, a transport carrier for transmission to Baburam. Baburam further sold these100TV sets to Shayamlal @60,000/- per set. On reaching the goods at the destination, Baburam demanded the delivery but Chetan, wrongfully, refused to deliver the goods to Baburam. That is why; he failed to deliver TV sets to Shayamlal and suffered a huge loss on account of non-delivery. Ansari came to know about this. He directed Chetan to stop the delivery to Baburam and re-deliver the goods to him at Jaipur. Answer the following questions under the provisions of the Sale of Goods Act, 1930: (A) Whether Ansari has right to stop the goods in transit? (B) Whether Baburam can claim loss suffered due to non-delivery from Ansari?

Suggested Answer and Working Notes:

According to Section 51 of the Sale of Goods Act,1930, when the carrier wrongfully refuses to deliver the goods to buyer, the right of stoppage in transit is lost and transit comes to an end. On the other hand, according to section 57 of the Sale of Goods Act,1930, where buyer suffers losses due to non-delivery, he can sue seller for damages on account of non-delivery. In the instant case, the transit came to an end when Chetan wrongfully refused to deliver the goods to Baburam, and he suffered a huge loss due to non-delivery. Hence, Ansari cannot exercise the right of stoppage of goods in transit as the transit has already come to an end. Baburam can claim loss suffered due to non-delivery from Ansari.

Topics: The Sale of Goods Act, 1930, The Sale of Goods Act, 1930, The Sale of Goods Act, 1930

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