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Examveda

A agrees to purchase from B a certain quantity of coal but the ship carrying coal has yet to arrive at the port. When shall the property in coal pass to A from B?

A. Immediately at the time of the agreement

B. When the ship arrives at the port with coal

C. When A is informed that ship is safe

D. At the option of B

Answer: Option B

Solution(By Examveda Team)

According to the Sale of Goods Act, the general rule for the transfer of property in goods is that it passes from the seller to the buyer at the time when the parties intend it to pass. This intention is determined based on the terms of the agreement between the parties, the conduct of the parties, and the circumstances of the case.

In the given scenario, since A agrees to purchase a certain quantity of coal from B and the coal is to be transported by ship to the port, the property in the coal is likely to pass to A when the ship arrives at the port with the coal. This is because the parties would likely have intended the transfer of property to occur upon the actual arrival of the goods at the agreed location.

Option A: Immediately at the time of the agreement is not the correct answer as the passing of property is generally not immediate but occurs based on the parties' intention.

Option C: When A is informed that ship is safe is not the correct answer as the safety of the ship does not necessarily determine the transfer of property in goods.

Option D: At the option of B is not the correct answer as the transfer of property is determined by the intention of both parties and not solely at the option of one party.

Given the options provided, the correct answer is Option B: When the ship arrives at the port with coal.

This Question Belongs to Law >> Sale Of Goods Act

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Comments ( 1 )

  1. Parneet Kaur
    Parneet Kaur :
    1 year ago

    why won't it pass immediately? i.e. option a
    someone please give the reasoning

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