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 analyzing a scenario involving the sale and return of goods under the Sale of Goods Act, 1930. It requires an evaluation of the legal responsibilities and liabilities of Mohan, Raj, and Vikas concerning the payment for the camera that was lost. This involves understanding the terms under which the camera was delivered and the implications of those terms on liability for payment.
Answer
Raj is liable to Mohan, and Mohan to Ashish.
Raj is liable to pay the price to Mohan, and Mohan is liable to pay Ashish. Vikas is not liable due to theft beyond his control.
Answer for screen readers
Raj is liable to pay the price to Mohan, and Mohan is liable to pay Ashish. Vikas is not liable due to theft beyond his control.
More Information
According to the Sale of Goods Act, 1930, when goods are sold on a 'sale or return' basis, the risk and title remain with the seller until acceptance by the purchaser. In this scenario, Raj accepted the camera on different terms from Mohan but did not pay, hence he is liable to Mohan. Mohan, having accepted the camera from Ashish, is liable to pay for it unless the contract with Raj absolves him of such responsibility. Vikas, having exercised due care, is not liable as the theft was not due to his negligence.
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