Question
ABC Trucks was the authorized dealer and seller of motortrucks of brand Powertrucks. With a view to boost the sales ABC Trucks sold a truck
ABC Trucks was the authorized dealer and seller of motortrucks of brand "Powertrucks". With a view to boost the sales ABC Trucks sold a truck to Mr X on trial basis for a period of three days. It was agreed between the seller and the buyer that Mr. X could use the truck for three days to check the performance. It was further agreed that if Mr X was not satisfied with the performance of the truck, he could return it. The price of the truck was negotiated and agreed. The truck was delivered to Mr. X. However, On the second day from the day of delivery, the truck got destroyed in a fire accident at the place of Mr X. This was purely an accident and no negligence at the end of buyer could be proved.
The seller (ABC Trucks) demanded the final agreed price of the truck from the buyer stating that the loss had to be borne by the buyer. ABC contended that the property in truck was transferred from him to the buyer when he drove the truck from his showroom to his place. Therefore, buyer became the owner of the truck. Since the risk travelled with the ownership, the buyer must bear the loss. Buyer did not accept the arguments of the seller and matter reached to the court.
Question - Who will bear the risk and why? .Will your decision change, if full price of the truck was paid in advance to the seller? Why or why not?
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