B offers A for his car ₹2,00,000/- and the car is to be delivered on the next day by A’s driver. B gave…
Under section 20 of the Sale of Goods Act, where there is an unconditional contract for the sale of specific goods in a deliverable state, the property passes to the buyer…
Choose your answer
B offers A for his car ₹2,00,000/- and the car is to be delivered on the next day by A’s driver. B gave a post-dated cheque of next month. A accepted the offer and the cheque. Under the Sale of Goods Act, 1930, when would that car become the property of B?
Answer and explanation
Correct answer D
Under section 20 of the Sale of Goods Act, where there is an unconditional contract for the sale of specific goods in a deliverable state, the property passes to the buyer when the contract is made, and it is immaterial that the time of payment or delivery is postponed. The car therefore becomes B's property "As soon as the offer is accepted by A i.e. on the same day", not on delivery, on the date of the cheque or on its encashment, unless a different intention appears under section 19.
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