Section 26 of SOGA : Section 26: Risk Prima Facie Passes With Property

Explanation using Example

Imagine Sarah purchases a new refrigerator from CoolTech Appliances. The refrigerator is to be delivered to her home in one week. According to Section 26 of The Sale of Goods Act, 1930, until Sarah actually owns the refrigerator (the property is transferred), if anything happens to it, like damage in the warehouse, the risk is on CoolTech. However, once Sarah becomes the owner on paper, even if the refrigerator hasn't been delivered yet, any risk of loss or damage shifts to her. Now, if Sarah delays the delivery because she's not ready to receive it and the refrigerator gets stolen from CoolTech's warehouse, the loss falls on Sarah because it was her fault the delivery was delayed.