Whether E- sale can be done by first buyer in ex-works cases

[Ramaiah Swamy]

Good evening all,

In  a case of sale on ex-work basis,  whether the first buyer can make E - sale to its customer ( called second buyer ) and whether the said customer can make further E - 2 sales to further customer ( called third buyer ?

In the present case, the fist buyer arranges its transport for lifting the material from seller's factory.

Seller is in chennai, first buyer is in maharastra and second buyer is also in maharastra

As per contract, first buyer should lift the  materials from the seller's factory.  Since the materials is taken by first buyer from the seller's factory, whether it can be said that first buyer has taken delivery , therefore th first buyer  can not make  E - sale. It is only the second buyer who can make first E - 1 sale in the present case.

Netizens' views are requested

Thanks and regards

Ramaiah swamy

AI Summary

Can a first buyer execute an E-sale if they transport goods, and how does it affect E1 sale eligibility? In an ex-works sale scenario, a user inquires whether the first buyer can execute an E-sale to a second buyer and if the second buyer can subsequently perform an E-2 sale to a third buyer. The first buyer is responsible for transporting materials from the seller's factory in Chennai to Maharashtra. The question centers on whether the first buyer's collection of goods constitutes taking delivery, thus preventing an E-sale. A respondent agrees but notes that if transportation documents are issued in the second buyer's name per the first buyer's instructions, it could qualify as an E1 sale.