Question

According to Section 26 of the Sale of Goods Act, 1930, which statement correctly reflects when risk passes to the buyer?

Q: Answer-According to Section 26 of the Sale of Goods Act, 1930, which statement correctly reflects when risk...

Section 26 provides Unless otherwise agreed, the goods remain at the sellers risk until the property therein is transferred to the buyer, but when the property therein is transferred to buyer, the goods are at the buyers risk whether delivery has been made or not Provided that if the delivery of goods has been delayed due to the fault of either the buyer or the seller and there has occurred some loss to the goods due to such delay, the party at fault has to bear the loss. This section establishes the maxim res perit domino a thing perishes to the owner. The important proviso creates an exception if delay is caused by one partys fault, that party bears the loss. For example, if the seller delays delivery and the goods are destroyed in a flood that would not have occurred had timely delivery been made, the seller bears the loss despite property having passed to the buyer.

A Risk always passes to the buyer upon physical delivery, regardless of property transfer

B Risk passes with the property, unless otherwise agreed; but if delivery is delayed due to buyer's fault, the buyer bears loss from delay

C Risk remains with the seller even after property passes to the buyer

D Risk and property are independent and never coincide

E The seller bears risk throughout unless the buyer pays the full price in advance

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According to Section 26 of the Sale of Goods Act, 1930, which statement correctly reflects when risk passes to the buyer?

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