Under the Sale of Goods Act, 1930, if seller fails to make reasonable contract and goods are lost or…

Section 39(2) provides that if the seller omits to make a reasonable contract and the goods are lost or damaged in transit or in the wharfinger's custody, "the buyer may decline to treat the delivery to the carrier or wharfinger as a delivery to himself, or may hold the seller responsible in damages". The loss does not fall on the buyer, and he is not limited to suing the carrier.