An agreement to sell goods leaves the price to an agreed third-party valuation. The valuer cannot make…
Section 10(1) provides that the agreement is avoided when the agreed third party cannot or does not make the valuation. If goods have been delivered and appropriated, the…
Choose your answer
An agreement to sell goods leaves the price to an agreed third-party valuation. The valuer cannot make the valuation, neither party is at fault, and no goods have been delivered. What is the effect under section 10 of the Sale of Goods Act, 1930?
Answer and explanation
Correct answer B
Section 10(1) provides that the agreement is avoided when the agreed third party cannot or does not make the valuation.
If goods have been delivered and appropriated, the buyer must pay a reasonable price for those goods. Section 10(2) also preserves a damages action for the party without fault if the other party prevents valuation.
Authority. Sale of Goods Act, 1930, section 10.
Option feedback
Option A
The reasonable-price proviso concerns goods delivered to and appropriated by the buyer. No goods have been delivered here.
Option B
Section 10(1) says the agreement is thereby avoided when the agreed valuation cannot be made.
Option C
Section 10 confers no unilateral pricing power on the seller.
Option D
Section 10(1) gives the failure its effect directly. It does not require an election by the buyer.
Practice for these exams
-
UGC NET Law
Subject revision
See pack details on LawMint.net -
Maharashtra Judicial Services
-
CUET PG Law (LL.M.)
Subject revision