Ashish, a trader, delivered a camera to Mohan on 'sale or return' basis. Mohan delivers the camera to Raj on the terms of 'sale for cash only or return'. Afterward, Raj delivered i... Ashish, a trader, delivered a camera to Mohan on 'sale or return' basis. Mohan delivers the camera to Raj on the terms of 'sale for cash only or return'. Afterward, Raj delivered it to Vikas on a 'sale or return' basis without paying cash to Mohan. The camera, which was in possession of Vikas, was lost by theft though he exercised due care for its safety. Referring to the provisions of the Sale of Goods Act, 1930, analyse the situation and advise whether Mohan, Raj or Vikas are, jointly or severally, liable to pay the price of the camera to Ashish.
Understand the Problem
The question is asking for an analysis of the legal responsibilities concerning the price of a camera that was sold under specific terms through multiple parties, referencing the Sale of Goods Act, 1930. We need to explore the implications of 'sale or return' and 'sale for cash only or return' on the liabilities of Mohan, Raj, and Vikas in the event of theft.
Answer
Raj is liable to Mohan; Mohan is liable to Ashish as Raj didn't pay.
Given the 'sale or return' terms, Vikas is not liable because he took due care. Raj is liable to Mohan because he failed to pay cash, and he remains liable if he doesn't return the camera. Mohan is liable to Ashish until the camera is sold or accepted by Raj.
Answer for screen readers
Given the 'sale or return' terms, Vikas is not liable because he took due care. Raj is liable to Mohan because he failed to pay cash, and he remains liable if he doesn't return the camera. Mohan is liable to Ashish until the camera is sold or accepted by Raj.
More Information
In a 'sale or return' arrangement, liability transfers only when goods are accepted or kept beyond a specific period without rejection. Since Raj did not pay, liability remains with him. Mohan's liability to Ashish continues unless Raj fulfills his obligation.
Tips
A common mistake is assuming goods must be paid for in a 'sale or return' before liability shifts, whereas rejection without payment retains liability with the initial seller.
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