Contract of sale Agreement to Sell Sale Remedies for Breach of COS Remedies for Seller Remedies for Buyer Case laws
Contract of sale: A contract of sale of goodsis a contract whereby the seller transfers or agreesto transfer the property in goods to buyer for aprice. A contract of sale is a legal contract for anexchange of goods, services or property to beexchanged from seller (or vendor) to buyer (orpurchaser) for an agreed upon value in money : Sale Agreement to Sell.
A contract of sale is a legal contract an exchange ofgoods, services or property to be exchanged fromseller to buyer for an agreed upon value for amoney.Where under a contract of sale, the property in thegoods is transferred from the seller to the buyerwith an immediate effect, the contract is called a“sale”
Where the transfer of the property in the goods isto take place at a future time or subject to someconditions thereafter to be fulfilled. The contractis called “agreement to sell .The terms agreed areput in writing in the form of an agreement, whichis known as Agreement to Sell…
If the party does not fulfill his contractual promise, or has given information to the other party that he will not perform his duty as mentioned in the contract or if by his action and conduct he seems to be unable to perform the contract, he is said to breach the contract..There are further remedies for the aggrieved party
Suitfor Price Damages for Non-Acceptance Damages for Non-Delivery Specific Performance
Suit for price.- Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may sue him for the price of the goods. Where under a contract of sale the price is payable on a day certain irrespective of delivery and the buyer wrongfully neglects or refuses to pay such price, the seller may sue him for the price although the property in the goods has not passed and the goods have not been appropriated to the contract.
Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue him for damages for non- acceptance. Damages for non- delivery.- Where theseller wrongfully neglects or refuses to deliver thegoods to the buyer, the buyer may sue the seller fordamages for non- delivery.
In any suit for breach of contract to deliver specific or ascertained goods, the Court may, if it thinks fit, on the application of the plaintiff, by its decree direct that the contract shall be performed specifically, without giving the defendant the option of retaining the goods on payment of damages.
In case of breach of the contract of sale of goodswhere the seller is the aggrieved party he has thefollowing remedies: Suit for price: Where under a contract of sale,the property in the goods has passed to the buyerand the buyer wrongfully neglects or refuses to payfor the goods according to the terms of the contract,the seller may sue him for the price of the goods.
Where the buyer wrongfully neglects orrefuses to accept and pay for the goods, the sellermay sue him for damages for non-acceptance. Themeasure of damages is according to the provisionsof section 73 of The Indian Contract Act, dependingupon the available market for the goods. In actionfor damages fro breach of contract to buy goods,plaintiff can only recover difference betweencontract price and market price and not betweencontract price and actual price.
Suit for damages for non-delivery of the goods: Where the seller wrongfully neglects orrefuses to deliver the goods to the buyer, the buyermay sue the seller for damages for non-delivery.This remedy of the buyer is similar to that of theseller under section 56, discussed above under suitfor damages by the seller.
When the goods are specific or ascertained, a buyer may sue the seller for specific performance of the contract and compel him to deliver the same goods. The court orders for specific performance only when the goods are specific or ascertained and an order for damages would not be an adequate remedy. Specific performance is generally allowed where the goods are of special significance or value e.g. a rare paining, a unique piece of jewelry, etc.
Where there is a breach of warranty by theseller, or where the buyer elects or is compelled totreat the breach of condition as breach of warranty,the buyer cannot reject the goods. The buyer may,(a) set up the breach of warranty in extinction ordiminution of the price payable by him, or (b) suethe seller for damages for breach of warranty.
Summary of the fact: A buyer responded to an advertisement describing a car for sale as a “1961” model. He inspected the car before buying it. After buying it he discovered that the car consisted of half a 1961 model and half of an earlier car. Issue: Whether there was a breach of implied condition as to description? Whether the buyer was entitled to reject the car? Decision: It was held that the seller was liable for breach of condition as to description and the buyer is entitled to reject the goods thereby.