Identify who bears the risk of loss when goods are stolen and resold？

Expert Solution

It very commonly happens that Goods may get stolen and resold by someone other than the buyer and seller. It depends on the circumstances of the time or the point of contract when the goods were stolen to determine who bears the risk of loss. The most important thing which determines liability is the person who holds the 'Title of Goods'. If in a transaction of sale between a buyer and seller, goods have been stolen before title was passed to buyer, then the risk of loss is borne by the seller. If the buyer holds the Title of goods and seller has completed his obligations as per terms of contract then risk is of Buyer.
If goods are stolen when they are held by seller on behalf of buyer, the liability of loss will be of seller. In case of 'Sale on approval', the risk of loss is of the seller unless and until buyer contractually accepts the delivered goods.
In case buyer breaches the sale contract, then risk of loss immediately transfers from seller to buyer.

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ekkarill92 answered 1 year ago

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