2. Contract of sale
Agreement to Sell
Sale
Remedies for Breach of COS
Remedies for Seller
Remedies for Buyer
Case laws
3. Contract of sale:
A contract of sale of goods
is a contract whereby the seller transfers or agrees
to transfer the property in goods to buyer for a
price. A contract of sale is a legal contract for an
exchange of goods, services or property to be
exchanged from seller (or vendor) to buyer (or
purchaser) for an agreed upon value in money :
Sale
Agreement to Sell.
4. A contract of sale is a legal contract an exchange of
goods, services or property to be exchanged from
seller to buyer for an agreed upon value for a
money.
Where under a contract of sale, the property in the
goods is transferred from the seller to the buyer
with an immediate effect, the contract is called a
“sale”
5. Where the transfer of the property in the goods is
to take place at a future time or subject to some
conditions thereafter to be fulfilled. The contract
is called “agreement to sell .The terms agreed are
put in writing in the form of an agreement, which
is known as Agreement to Sell…
6. 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
7. Suitfor Price
Damages for Non-Acceptance
Damages for Non-Delivery
Specific Performance
8. 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.
9. 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 the
seller wrongfully neglects or refuses to deliver the
goods to the buyer, the buyer may sue the seller for
damages for non- delivery.
10. 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.
11. In case of breach of the contract of sale of goods
where the seller is the aggrieved party he has the
following remedies:
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.
12. Where the buyer wrongfully neglects or
refuses to accept and pay for the goods, the seller
may sue him for damages for non-acceptance. The
measure of damages is according to the provisions
of section 73 of The Indian Contract Act, depending
upon the available market for the goods. In action
for damages fro breach of contract to buy goods,
plaintiff can only recover difference between
contract price and market price and not between
contract price and actual price.
13. Suit for damages for non-delivery of the goods:
Where the seller wrongfully neglects or
refuses to deliver the goods to the buyer, the buyer
may sue the seller for damages for non-delivery.
This remedy of the buyer is similar to that of the
seller under section 56, discussed above under suit
for damages by the seller.
14. 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.
15. Where there is a breach of warranty by the
seller, or where the buyer elects or is compelled to
treat 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 or
diminution of the price payable by him, or (b) sue
the seller for damages for breach of warranty.
17. 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.
