Effect of Pershing of Goods

Effect of Pershing of Goods May Fall Under

1.    Where specific goods from the subject matter of contract of sale (both actual sale and agreement to sell, and they, without the knowledge of seller perish, at or before the time of contract , the contract is void. This provision is made either on the ground of mutual mistake as to matter of fact essential to agreement, or on the ground of impossibility of performances, both of which render the contract void ab-initio.

2.  Pershing of goods before sell, but after agreement to sell: Where there is agreement to sell specific goods, and subsequently the goods, without any fault on the part of the seller or buyer, perish before the risk passes to buyer, the agreement is thereby avoided, i.e., Sales becomes void and both parties are excused from performance. This is based on Supervening Impossibility.

If only part of the goods agreed to be sold perish, the contract is void is if it is indivisible. In case contract is divisible, perish­ing of goods rule apply to the extent of perishing goods. The contract is valid as regards the part available in good condition.

It is to be noted that if fault of either party causes the destruc­tion of the goods, then the party in default is liable for non-delivery or to pay for goods as the case may be. Again if the risk has passed to the buyer, he must pay for the goods, though undelivered.

3.  Effect of Perishing of Future goods: Present sale of future goods is an agreement to sale. In case of future goods, if sufficiently identified, are to be treated as specific goods, the destruction of which makes the contract void.E.g. A agreed to sell B, 100 tons of potatoes to be grown
in A’s land. A did everything needed but decease attacked and could produce only 20 tones. The contract was held as void.

 Difference between Common Carriers and Private Carriers
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Effect of Pershing of Goods Effect of Pershing of Goods Reviewed by Hosne on 12:11 PM Rating: 5

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