Section 7 of The Sale of Goods Act, 1930
Where there is a contract for the sale of specific goods, the contract is void if the goods without the knowledge of the seller have, at the time when the contract was made, perished or become so damaged as no longer to answer to their description in the contract.
Summary
- A contract for specific goods is completely void if the goods were already destroyed when the contract was made.
- This rule applies only if the seller did not know the goods had perished.
- The contract is also void if the goods are so damaged that they no longer match the description in the deal.
- This provision prevents people from being bound to a contract for something that doesn't exist anymore.
Practical examples
FAQ
1. What happens if specific goods are destroyed before the contract is made under the Sale of Goods Act, 1930?
Under Section 7 of the Sale of Goods Act, 1930, the contract is void if the goods perished without the seller's knowledge.
2. Does the contract become void if the goods are only damaged under the Sale of Goods Act, 1930?
Yes, Section 7 of the Sale of Goods Act, 1930, states the contract is void if the goods are so damaged they no longer answer to their description.
3. What if the seller knew the goods were destroyed before signing the contract under the Sale of Goods Act, 1930?
Section 7 only applies when the goods perished "without the knowledge of the seller." If the seller knew, the contract is not voided by this specific section.
Test yourself
Q1.Under Section 7 of the Sale of Goods Act, 1930, what type of goods must the contract be for in order for this section to trigger?
Q2.According to Section 7 of the Sale of Goods Act, 1930, what is the legal status of a contract where the specific goods perished before the contract was made?
Q3.Under Section 7 of the Sale of Goods Act, 1930, what must be true about the seller for the contract to be void?
Q4.Using the definition of "specific goods" from Section 2(14), what happens if 100 generic chairs (not yet identified) are destroyed before a contract is made under Section 7?