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First Principles of Business Law
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| Quiz: The sources of law - legislation |
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Question 20
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Read the section from the Goods Act 1958 (Vic) reproduced below. To which one of the following situations would the provisions of this section apply?
Goods Act 1958 (Vic)
11. Goods perished at time of contract
Where there is a contract for the sale of specific goods, and the goods without the knowledge of the seller have perished at the time when the contract is made the contract is void.
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(a) A agrees to sell his Ford GTX car to B for $20,000. Shortly after the contract is made, and before delivery to B, this car is destroyed in an accidental fire.
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(b) A, who knows that his Ford GTX car has accidentally been destroyed in a fire, agrees to sell that car for $20,000 to B, intending to substitute another car of the same type when the time for delivery comes.
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(c) A agrees to sell his Ford GTX car to B for $20,000. Shortly after the contract is made, and before delivery to B, A discovers that his car was accidentally destroyed the day before by fire.
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