Perishing of Goods

• A contract is void if the subject matter of the contract no longer exists ( or is damaged ) at the time of the contract . This is a mutual mistake of the parties in respect of the contracted goods which have either perished or damaged to such extent that they no longer answer to description . Section 7 of SGA provides that : 

"Where there is a contract for the sale of specific goods , the contract is void if the goods wihout the knowledge of the seller have , at the time when the contract was made , perished or become so damaged as no longer to answer to their description in the contract;'

• An agreement to sell is void if the perishing or damage to the contracted goods occurs after the agreement has been entered into but before the ownership of the goods is passed to the buyer . This implies that the seller is not liable for non- delivery and the buyer is not liable to pay the price . The seller mst bear the loss and if the buyer has paid the price in advance , he can recover the price paid for a total failure of consideration . Section 8 of SGA provides that : 

"Where there is an agreement to sell specific goods , and subsequently the goods , without any fault on the part of the seller or buyer , perish or become so damaged as no longer to answer to their description in the agreement , before the risk passes to the buyer , the agreement is thereby avoided ."