(i) Rajnikant agrees to sell some specific goods coming on a ship name “Titanic” to Chiranjivi which will be delivered on arrival of “Titanic”. The…

CA Foundation · Business Laws · MTP · September 2025
(i) Rajnikant agrees to sell some specific goods coming on a ship name “Titanic” to Chiranjivi which will be delivered on arrival of “Titanic”. The ship arrived at the port but goods were not found on the ship. Chiranjivi had to procure the goods from open market at higher price. Afterwards, Chiranjivi sued Rajnikant for recovery of extra payment he made for goods. State with reasons, whether Rajnikant is liable to compensate Chiranjivi under the provisions of the Sale of Goods Act, 1930? (4 Marks) (ii) Saurabh purchased electric scooter of Vivek for 5000only on the gun point. Vivek decided to file the complaint and to avoid the contract on the basis of coercion applied against him by Saurabh. But before he could do that, Saurabh sold the scooter to Vinay who had no idea about the situation on which the scooter was purchased by Saurabh. Vivek sued Saurabh and Vinay for recovery of scooter. Referring to the provisions of the Sale of Goods Act, 1930, whether Vivek was correct in his decision? (3 Marks)

Suggested Answer and Working Notes:

(i) Section 6 (2) of the Sale of Goods Act, 1930 provides the acquisition of goods which depends upon uncertain contingency are called ‘Contingent Goods’. Contingent goods also operate as ‘an agreement to sell’ and not a ‘sale’ so far as the question of passing of property to the buyer is concerned. In other words, like the future goods, in the case of contingent goods also, the property does not pass to the buyer at the time of making the contract. In the instant case, there was an agreement between Rajnikant and Chiranjivi to sell some specific goods coming on a ship name “Titanic” by Rajnikant to Chiranjivi which will be delivered on arrival of “Titanic”. On the arrival of ship, it was found that the goods were not on it. Chiranjivi procured the goods from open market at higher price, and he sued Rajnikant for recovery of extra payment he made for goods. On the basis of above provisions and facts, it is clear that goods under the agreement were contingent goods and the agreement between Rajnikant and Chiranjivi was ‘an agreement to sell’ and not a ‘sale’. The property in goods will be passed only after arrival of goods. As there was no ‘Sale’ between them, Chiranjivi cannot recover extra payment he made for goods. (ii) By virtue of provisions of Section 29 of the Sale of Goods Act, 1930, a buyer would acquire a good title to the goods sold to him by a seller who had obtained possession of the goods under a contract voidable on the ground of coercion, fraud, misrepresentation or undue influence provided that the contract had not been rescinded until the time of the sale. In the instant case, Saurabh purchased electric scooter of Vivek for 5000only by applying coercion. Before Vivek avoid the contract, Saurabh sold the scooter to Vinay who was an innocent buyer. Now, Vivek sued Saurabh and Vinay for recovery of scooter. According to above provisions, even Saurabh purchased the electric scooter by applying coercion, Vinay got good title as he was an innocent buyer and purchased the scooter before setting aside the contract by Vivek. However, Vivek may claim damages only from Saurabh.

Topics: The Sale of Goods Act, 1930

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