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Question

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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.

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Solution


Relevant SectionSection 7
Decision The contract of sale has become void and thus, Y cannot be compelled to accept 591 bags.
ReasonThere 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. [Leading case: Barrow Lane & Ballard Ltd. v. Phillips.& Co.]

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