PASSING OF RISK IN THE SALE OF GOODS ORDINANCE NO 11 OF 1896 IN SRI LANKA; AN ANTIQUATED THEORY: A COMPARATIVE STUDY

Abstract

         Sale of Goods law in Sri Lanka is governed by Sale of Goods Ordinance No 11 of 1896. The risk of accidental loss of the goods sold passes prima facie when the property passes as per section 21(1) of the Sale of Goods Ordinance No 11 of 1896 in Sri Lanka. Section 21(1) –  “Unless otherwise agreed, the goods remain at the seller’s risk until the property therein is transferred to the buyer, but when the property therein is transferred  to the buyer the goods are at the buyer’s risk, whether delivery has been made or not”.