Under the Sale of Goods Act, 1930, what happens if the goods sold are damaged or perish before the property passes to the buyer?

According to Section 20 of the Sale of Goods Act, 1930: • If the goods perish or are damaged before the property has passed to the buyer, the loss lies on the seller. • However, if the buyer has taken possession or the property has passed, the buyer bears the loss. • This principle is important for insurance contracts, particularly marine or transit insurance, to identify who is responsible for loss or damage and who claims under the insurance. This ensures clarity on risk transfer timing between seller and buyer in insured transactions.