QUESTION 1 (TRANSFER OF RISK)

According to the Sale of Goods Act, who bears the risk if the custom-made goods are stolen before completion?

• The buyer

• The seller

What can Ali request from the jeweler if his custom jewelry is stolen before completion?

• A replacement or a refund

• To pay for the unfinished goods

If custom-made goods are unascertained or incomplete, when does the property transfer according to the Sale of Goods Act?

• When the goods are identified and ready for delivery

• Immediately after payment

Under Section 23 of the Sale of Goods Act, when does ownership of unascertained or future goods pass to the buyer?

• A) When the goods are in a deliverable state and unconditionally appropriated to the contract

• B) As soon as the buyer places an order

• C) When the goods are partially completed

In Ali’s case, why has ownership and risk not passed to him for the jewelry?

• A) The jewelry was in a deliverable state but not unconditionally appropriated

• B) The jewelry was incomplete and not in a deliverable state

• C)The jewelry was unconditionally appropriated to the contract

Which of the following statements about ownership and risk in Ali’s case are correct?

• A) Ownership has not passed to Ali because the jewelry is incomplete

• B) The risk remains with the seller until the jewelry is in a deliverable state

• C) Ali bears the risk of theft since the piece was made specifically for him

• D) The jewelry is considered unascertained goods

According to Section 26 of the Sale of Goods Act, when does risk transfer to the buyer?

• A) When the buyer pays for the goods

• B) When ownership of the goods has passed

• C) When the buyer places the order

• D) As soon as the goods are partially completed

Why is the risk of the stolen jewelry still with the seller in this case?

• A) Because the goods are unascertained and incomplete

• B) Because Ali paid for the goods in advance

• C) Because the jewelry is fully complete and ready for delivery

• D) Because the contract does not mention risk transfer

In Ali’s case, why does the jewelry qualify as “unascertained goods”?

• A) Because it is custom-made but incomplete

• B) Because it is already identified for delivery

• C) Because it is fully paid for by Ali

• D) Because it is a finished product

In Ali’s case, why does the risk remain with the jewelry shop?

• A) Because Ali has not made full payment

• B) Because the jewelry shop did not notify Ali about the theft

• C) Because the jewelry is incomplete and not yet in a deliverable state