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Effect of perishing of unascertained goods

Sec 7 and 8 do not voice the consequences in case of destruction of unascertained goods.
In cases of destruction of unascertained goods as the goods have not been identified at the time of formation of the contract of sale the seller would not be discharged on the grounds of impossibility of performance. In such cases the contract is subsisting and the seller needs to perform the contract or pay damages for the breach in case if he fails to perform the same.



X agreed to sell to Y 10 bales of Egyptian cotton out of 100 bales lying in his godown. The goods were already destroyed by fire before the contract of sale. But both X and Y did not know about the fire. In this case the contract is not void as it was not for the sale of specified goods, but for the sale of certain quantity of unascertained goods. And thus, X is liable to supply 10 bales of Egyptian cotton to Y, or to pay him the damages for breach of contract.


Note: In case of unascertained goods, the contract will not be void.

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