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For delivery of it, A had to fill oil into casks and filling into
casks and filling into casks, B have to them away. Some of the casks were filled in the
presence of B, but before filling remaining casks a fire broke out and entire volume of oil
got destroyed.
A. Who should bear the loss, A or B or Both?
Ans: In my opinion, I think “A” should bear the loss because In the case, even though “A” has
sold goods to “B”, it does not means that “B” will be liable for this destruction because in this
case selling of goods takes place not the delivery of goods. So, if the good will be completely
delivered to B, then there seems the transfer of owner ship. We know that ownership transfer is
the ultimate right of the person to his good.
Since, in this case, selling of goods takes place not the transfer of ownership. So, due to
complete undelivered of goods to “B”, there seems “A” still has ownership of goods with him.
So, because of this, A is completely liable for the loss.
B. If both should bear the loss, how should they bear it?
Ans: By analyzing the contract of sales, we find that A is completely liable for this loss
because the goods is still not delivered to B. But if both agree to bear the loss on mutual
agreement, the extent of loss that “B” is going to bear is quite small then the extent of “A”. It is
so because A had failed to deliver the goods to “B” completely. So there is no complete transfer
of goods. Therefore, the extent of loss bear by “B” is small than “A”.
2. Bhanubhakta school of Kathmandu is in need of English teacher and therefore, the
school calls, through advertisement application from the public. Pashupati, a resident
of pokhara comes to Kathmandu and applies for the post. The management committee
decided to approve this application for the post but that decision was not communicated
to Pashupati. One of the members of the management committee in his individual
capacity and without any authority informs the pashupati about the decision.
Subsequently, the management committee cancelled the decision and appointed another
teacher in his place. Ascertaining the fact, pashupati filled suit against the management
committee for the breach of contract and claim the compensation for Rs. 5,000.
3. Kathmandu Institute of technical science (KITS) calls tender for the supply of certain
health Appliance, which it may require from time to time. Mr . X submits the tender
application with quotation promising to go on supplying the appliance as and when KITS
requires. KITS accepts the tender of a Mr.X. But during the whole year period, it does
not make any order for the goods due to which X has to suffer a huge loss because of X
unnecessary capital blockage. Mr.X sues KITS claiming compensation for loss caused to
him because of no order being placed by the latter. Besides, the above case on the basis
rules regarding standing contract.