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Passing of risk

The general rule in the contract of sale is that ‘the risk prima facie passes with the ownership’. Thus, the owner of the goods must bear the loss or damage of the goods unless otherwise agreed upon. Under Sec. 26 of the Sale of Goods Act, unless otherwise agreed, the goods remain at the seller’s risk until property therein has passed to the buyer. After the transfer of ownership they are at the buyer’s risk, whether delivery has been made or not. Thus, actual delivery is immaterial for the passing of risk.

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