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Assume the buyer and seller have not agreed to a different allocation of risk and neither has delayed…

Section 26 places risk on the seller until property in the goods passes, unless the parties agree otherwise. Once property passes, risk generally lies with the buyer whether…

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Assume the buyer and seller have not agreed to a different allocation of risk and neither has delayed delivery through fault. Under section 26 of the Sale of Goods Act, 1930, when does the risk of accidental loss generally pass to the buyer?

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Answer and explanation

Correct answer A

Section 26 places risk on the seller until property in the goods passes, unless the parties agree otherwise.

Once property passes, risk generally lies with the buyer whether or not delivery has occurred.

Where one party's fault delays delivery, the separate proviso puts on that party the risk of loss that would not have occurred but for the fault.

Option feedback

Option A

In the stated circumstances, ownership transfer is the statutory point for risk to pass.

Option B

Delivery is unnecessary for the statutory default where ownership already passed.

Option C

Making the contract is insufficient while ownership remains with the seller.

Option D

Payment is not the statutory trigger independently of ownership.

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