Multiple choice

In case of an agreement to sell, subsequent loss of destruction of the goods is the liability of

  1. the buyer

  2. the seller

  3. both the buyer and the seller

  4. the insurance company
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In an agreement to sell, subsequent loss or destruction of goods is the seller's liability. Unlike a completed sale where ownership has transferred, in an agreement to sell, ownership remains with the seller until the conditions for transfer are fulfilled. Since the seller is still the owner, they bear the risk of loss. This is a fundamental distinction between sale (immediate transfer of ownership) and agreement to sell (transfer to happen in future).

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