Subject-matter of contractCentral

Section 8 of The Sale of Goods Act, 1930

Where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided.

Summary

This provision cancels a contract if specific goods are destroyed after an agreement but before the final sale.
It applies only when the goods are specific, meaning they were identified and agreed upon at the time of the deal.
The goods must perish or become so damaged that they no longer match what was promised.
Neither the buyer nor the seller can be at fault for the damage or loss.
The rule only triggers if the legal risk has not yet passed to the buyer.

Practical examples

1Rahul agrees on May 1st to buy Simran's vintage motorcycle for 50,000 rupees. They plan to finish the sale on May 5th. On May 3rd, a sudden lightning strike burns the motorcycle in the garage. Neither is at fault, and the risk was still with Simran, so the agreement is cancelled under Section 8.

2Priya agrees to sell her specific award-winning horse, Thunder, to a farm on June 10th. Before the horse is delivered or the sale is completed, the horse dies of a natural heart attack on June 12th. Since the horse can no longer be sold as agreed, Section 8 makes the contract void.

FAQ

1. What happens under Section 8 of The Sale of Goods Act, 1930 if specific goods are destroyed by an accident?

Under Section 8 of The Sale of Goods Act, 1930, the agreement is avoided, meaning it is cancelled and neither party is bound by it, provided the damage happened without fault and before the risk passed to the buyer.

2. Does Section 8 of the 1930 Act apply to goods that are not yet manufactured?

No, Section 8 of the Sale of Goods Act, 1930 specifically applies to specific goods which were identified when the agreement was made, not to general or future goods.

3. What if the seller accidentally breaks the item before the sale under Section 8 of The Sale of Goods Act, 1930?

Section 8 of The Sale of Goods Act, 1930 does not apply if there is fault on the part of the seller. If the seller is at fault for the damage, they may be liable for breach of contract instead of the agreement being simply avoided.

Test yourself

Q1.Under Section 8 of The Sale of Goods Act, 1930, what must happen to the goods for the agreement to be avoided?

Q2.Which condition is necessary for Section 8 of the Sale of Goods Act, 1930 to cancel an agreement?

Q3.According to Section 8 of The Sale of Goods Act, 1930, when must the goods perish for the rule to apply?

Q4.What is the legal result under Section 8 of the 1930 Act when specific goods are destroyed without fault before risk passes?

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