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 to analyze a series of transactions involving the sale of a camera according to the Sale of Goods Act, 1930, and to determine the liability of Mohan, Raj, and Vikas regarding the payment for the camera after it was lost. It involves understanding the implications of 'sale or return' terms and whether any party can be held liable to Ashish, the original seller.
Answer
Mohan and Raj are liable to Ashish, Vikas exercised due care.
Vikas is not liable as he exercised due care. Under 'sale or return' terms, Mohan and Raj are liable to pay Ashish as possession passed without cash and terms were violated.
Answer for screen readers
Vikas is not liable as he exercised due care. Under 'sale or return' terms, Mohan and Raj are liable to pay Ashish as possession passed without cash and terms were violated.
More Information
In 'sale or return', if goods are stolen despite care, the possessor is not liable for theft, but prior sellers retain liability if cash terms weren't met.
Tips
Confusing possession terms with ownership can lead to errors. Understanding 'sale or return' and 'sale for cash only' conditions is crucial.
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