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Remedies of buyer against the seller and auction sale

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Remedies of buyer against the seller and auction sale

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Remedies of buyer against the seller and auction sale

  1. 1. PREPARED BY : AJAY PRAJAPATI ENR. NO : 201406100710018 TOPIC : REMEDIES OF BUYER AGAINST THE SELLER & AUCTION SALE MERCANTILE LAWS
  2. 2. REMEDIES OF BUYER AGAINST THE SELLER The buyer gets the following rights against the seller : 1. 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 damage for non-delivery . 2. Suit for specific performance : Where the seller commits of breach of the contract of sale, the buyer can appeal to the court for specific performance. The court can order for specific performance only when: (i) The goods ascertained or specific; (ii) The damages are insufficient ; or (iii) The goods are unique and costly. Example :a unique piece of jewellery
  3. 3. REMEDIES OF BUYER AGAINST THE SELLER Conti… 3. Suit for breach of warranty :  If there is breach of warranty on the part of the seller,  Where the buyer elects to treat breach of condition as breach of warranty, in such circumstances the buyer is not entitled to reject the goods.  But he may - (a) set up against the seller the breach of warranty in diminution or extinction of the price; or (b) sue the seller for damages for breach of warranty.
  4. 4. REMEDIES OF BUYER AGAINST THE SELLER Conti… 4. Suit for damages for repudiation of contract by the seller before the due date : (a) The buyer may treat the contract as subsisting and wait for the date of delivery, or (b) He may treat the contract as repudiated and sue for damages for breach. 5. Suit for interest : The buyer is entitled to recover interest or special damages to recover the money paid where in consideration for the payment of it has failed.
  5. 5. REMEDIES OF BUYER AGAINST THE SELLER Conti…  Example : 1. In case of a sale of cigarettes which turned out to be mildwed and unfit for consumption, damages were awarded on the basis of the difference between the contract price and the price released. 2. In case of absence of transfer of title or registration the purchaser cannot claim damages for breach of conditions and warranties relating to sale.
  6. 6. Auction Sale  Meaning of Auction Sale  An auction sale is a mode of selling property by inviting bids publicly and the property is sold to the highest bidder.  An auctioneer is an agent governed by the law of agency . When he sells, he is only the agent of the seller.  he may , however , sell his own property as the principal and need not disclose the fact that he is so selling.
  7. 7. Auction sale
  8. 8. Provisions As To Auction Sale 1. Where goods are sold in lots : Where goods are put for sale in lot, each lot is prima facie deemed to be subject matter of a separate contract of sale. 2. Completion of the contract of sale : The sale is complete when the auctioneer announces its completion by the fall of hammer or in any other customary manner and until such announcement is made, any bidder may retract from his bid. 3. Right to bid may reserved : Right to bid may be reserved expressly by or on behalf of the seller and where such a right is expressly reserved, but not otherwise, the seller or any one person on his behalf may bid at the auction.
  9. 9. Provisions As To Auction Sale Conti… 4. Where the sale is not notified by the seller : where the sale is not notified to be subject to the right of the seller to bid, it shall not be lawful for the seller to bid himself or to employ any person to bid at such sale, or for the auctioneer knowingly to take any bid from the seller or any person representing him. Any sale contravening this rule may be treated as fraudulent by the buyer. 5. Reserved price : The sale may be notified to be subject to a reserved or upset price; and 6. Pretended bidding : If the seller makes use of pretended bidding to raise the price, the sale if voidable at the option of the buyer.

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