With reference to provisions of the Sale of Goods Act, 1930, answer the following: (i) What are the consequences of the destruction of specified…

CA Foundation · Business Laws · MTP · January 2026
With reference to provisions of the Sale of Goods Act, 1930, answer the following: (i) What are the consequences of the destruction of specified goods, before making of contract and after the agreement to sell under the Sale of Goods Act, 1930. (ii) Sometime breach of condition will be treated as breach of warranty as a result of which buyer losses his right to rescind. State the circumstance where a contract cannot be avoided even on account of breach of condition.

Suggested Answer and Working Notes:

(a) (i) (A) Goods perishing before making of Contract (Section 7 of the Sale of Goods Act, 1930): In accordance with the provisions of the Sale of Goods Act, 1930 as contained in Section 7, a contract for the sale of specific goods is void, if at the time when the contract was made; the goods without the knowledge of the seller, perished or become so damaged as no longer to answer to their description in the contract, then the contract is void ab initio. (B) Goods perishing before sale but after agreement to sell (Section 8 of the Sale of Goods Act, 1930): Where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided or becomes void. (ii) Section 13 of the Sale of Goods Act, 1930, specifies cases where a breach of condition be treated as a breach of warranty. As a result of which the buyer loses his right to rescind the contract and can claim damages only. In the following cases, a contract is not avoided even on account of a breach of a condition: Where the buyer altogether waives the performance of the condition. A party may for his own benefit, waive a stipulation. It should be a voluntary waiver by buyer.Where the buyer elects to treat the breach of the conditions, as one of a warranty. That is to say, he may claim only damages instead of repudiating the contract. Here, the buyer has not waived the condition but decided to treat it as a warranty.Where the contract is non- severable and the buyer has accepted either the whole goods or any part thereof.Where the fulfilment of any condition or warranty is excused by law by reason of impossibility or otherwise.

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

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