Question

solve:
Example I X delivers some goods to Y on Sale or return for 7 days. State the legal position in each of the following alternative cases:
Case (a) such goods are destroyed by fire on the third day itself without any fault of Y.
Case (b) Y informs X on telephone on the third. day itself that he has accepted the goods and immediately after the receiver is put off, the goods are destroyed by fire.
Case (c) such goods are further delivered by Y on the third day itself to Z and then by Z to A on similar terms. The goods are stolen while in the custody of A.
Case (d) Y neither returns nor gives notice of rejection even after the expiry of 7 days. Goods are destroyed by fire on the eighth day
Case (e) Y retains the goods but gives the notice of rejection on the expiry of 7 days. Goods are destroyed by fire on the eighth day.

Answer 1

Solution:
Case (a) X shall bear the loss because the ownership has not yet passed to the buyer. [Elphick v. Bames]
Case (b) Y shall bear the loss because the ownership has passed to the buyer.
Case (c) X can recover the loss from Y because the ownership passed to Y as Y has adopted the transaction by delivering the goods to Z. Y can recover the loss from Z because the ownership has passed to Z as Z has adopted the transaction by delivering the goods Z. cannot recover the loss from A because the ownership has not yet passed.
Case (d) Y shall bear the loss because the ownership has passed to the buyer.
Case (e) X shall bear the loss because the ownership has not yet passed.