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Example I X agreed to sell 100 bags of wheat to Y out of his stock of 500 bags A tire broke out and the entire quantity of wheat was destroyed. State who shall bear the loss and why in each of the following alternative cases?
(a) If no bag had been separated before fire for the purposes of delivery to Y;
(b) If 100 bags had been separated before fire with Y's consent

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Solution

Solution:
Case (a) X shall bear the loss because the ownership has not transferred to Y as the goods were not ascertained.
Case (b) Y shall bear the loss because the ownership has transferred to Y as the goods were ascertained.

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