Home  /  Indian Contract Act  /  Section 92

Section 92: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 91 All 266 Sections of Indian Contract Act Section 93

Legal Commentary & Landmark Judgments: Section 92

Section 92 of the Indian Contract Act, 1872 originally regulated the risk of necessary deterioration of goods delivered at a distant place, providing that the buyer bears the risk of deterioration incidental to transit; repealed by Act 3 of 1930 and succeeded by Section 40 of the Sale of Goods Act, 1930.

  • Delivery Undertaken at Distant Venue: Applied where the seller agreed to deliver goods at his own risk at a distant destination.
  • Buyer's Risk of Incidental Transit Deterioration: The buyer was statutorily mandated to bear the risk of any necessary or unavoidable deterioration in the goods naturally incidental to the transit, unless otherwise agreed.
  • Legislative Repeal and Modern Succession (Act 3 of 1930): Repealed by Act 3 of 1930; re-enacted verbatim in Section 40 of the Sale of Goods Act, 1930.
Key Landmark Precedents:
  • Bull v. Robison (1854) 10 Ex 342: Leading common law authority codified in Section 92 and Section 40 SGA: iron sent by canal boat rusted due to unavoidable atmospheric dampness during transit; held that the buyer must bear the deterioration incidental to standard transit.
  • P.S.N.S. Ambalavana Chettiar v. Express Newspapers Ltd. (1968) 2 SCR 439: The Supreme Court recognized the statutory allocation of transit risks under Section 40 SGA (the successor to Section 92 Contract Act), holding that natural deterioration does not constitute seller default.
Courtroom Practice & Strategic Litigation Guidance:

In perishable foodstuff, chemical, or steel coil shipments across long distances, rely on Section 40 SGA (succeeding Section 92) to defend against buyer rejection where goods exhibit minor cosmetic oxidation, sweating, or shrinkage normal to lengthy transit. Plead that incidental transit deterioration is the buyer's statutory risk.

Section 91 All 266 Sections of Indian Contract Act Section 93