Chapter 14 PRACTICAL PROBLEMS

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PRACTICAL PROBLEMS

(1)        State whether the following contracts of the sale amount to sale or an agreement to sell

Case (a):         X entered into a contract for sale of the entire crop of rice that would yield on his farm.

Case (b):         A railway administration entered into a contract for sale of coal-ash that might accumulate during the period of contract.

Case (c):         X entered into a contract for sale of some goods in a particular ship to be delivered on the arrival of the ship.

Case (d):         X entered into a contract for sale of a painting only if Z, its present owner, sells it to him.

Solution: Case (a) and (b):

Section to which the given problems relate: Section 6(3).

Decision and Reason:

The contract amounted to an agreement to sell because the subject matter of the contract is future goods, which can be the subject matter of an agreement to sell only.

Case (c) and (d):

Section to which the given problems relate: Section 6(2).

Decision and Reason:

The contract amounted to agreement to sell because the subject matter of the contract is contingent goods, which can be the subject matter of an agreement to sell only.

(2)        X agreed to sell to Y a parcel of 700 bags of groundnuts lying in his godown. Unknown to X, 109 bags had been stolen at the time of contract. X tendered delivery of 591 bags. Y declined to accept. State the legal position.

Solution:          Section to which given problem relates: Section 7.

Decision:         The contract of sale has become void and thus, Y cannot be compelled to accept 591 bags.

Reason:           There was a contract for sale of an indivisible lot of specific goods and some goods are destroyed at the time when the contract was made without the knowledge of the seller.

(3)        X agreed to sell a horse to Y on condition that Y will keep it for 10 days on trial basis and have the option to return on the expiry of 10 days, if he does not find it suitable. However, the horse dies on the third day, without any fault of either the seller or buyer. State the legal position.

Solution:          Section to which the given problem relates: Section 8.

Decision:         The agreement to sell has become void and thus, the seller could not recover the price from the buyer.

Reason:           There was an agreement to sell specific goods, which are destroyed before it becomes a sale without any fault of seller or buyer.

(4)        X entered into on a contract for the sale of 100 bags of wheat out of 1000 bags lying in his godown. Unknown to X, the entire stock was destroyed by fire. X declined to deliver. State the legal position.

Solution:          Section to which the given problem relates: Section 7 Decision: X must deliver 100 bags of wheat or pay damages for the breach.

X entered into a contract for sale of the entire crop of rice that would yield on his farm*

A railway administration entered into a contract for sale of coal-ash that might accumulate during the period of contract. X entered into a contSract for sale of some goods in a particular ship to be delivered on the arrival of the ship.

X entered into a contract for sale of a painting only if Z, its present owner, sells it to him.

Reason: There was a contract for the sale of unascertained goods and not specific goods and hence the contract did not become void.

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