Performance of contract


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Performance of contract

  1. 1. Performance of contract
  2. 2. <ul><li>Seller & buyer are the two parties to a contract of sale. </li></ul><ul><li>The duty of seller is to deliver the goods & the duty of the buyer is to accept the goods & pay for them. </li></ul>
  3. 3. Delivery <ul><li>‘ Delivery’ means voluntary transfer of possession from one person to another. </li></ul><ul><li>The basic elements of delivery are: </li></ul><ul><li>Two parties. </li></ul><ul><li>Person possess the goods. </li></ul><ul><li>He transfer possession to other. </li></ul><ul><li>It is a voluntary act of him. </li></ul>
  4. 4. Mode of delivery <ul><li>Physical or actual delivery: When the seller transfers the possession of the goods to the buyer or to a person authorized to hold them on his behalf. </li></ul><ul><li>Symbolic delivery – Where actual delivery is not possible. Only the control over the goods is transferred. Handing over the keys of godown or warehouse. </li></ul>
  5. 5. <ul><li>Constructive delivery – It takes place in following cases: </li></ul><ul><li>Where the seller agrees to hold the goods as bailee for the buyer after sale. </li></ul><ul><li>Where the warehouseman or carrier holds the goods as bailee for the seller. </li></ul>
  6. 6. Rules regarding delivery <ul><li>Mode of delivery – the delivery may take place by any of the three modes: actual, symbolic, constructive delivery. The delivery means passing of possession to make the buyer the real owner of goods. </li></ul><ul><li>Delivery & payment are concurrent – The delivery & payment of price are concurrent conditions unless the parties agree otherwise. </li></ul>
  7. 7. <ul><li>Effect of part delivery – If the intention of the seller is to deliver the goods in parts & to perform the whole contract then part delivery is valid delivery. </li></ul><ul><li>But if goods are delivered in parts & the seller is not intending to contract fully then there is breach of contract. </li></ul><ul><li>Buyer to apply for delivery – Unless there is a contract to the contrary then buyer must apply for delivery. It will always be the buyer who will apply for delivery of goods. But, if it is mentioned in contract </li></ul>
  8. 8. <ul><li>That seller will deliver goods then seller have to do so without applying of buyer. </li></ul><ul><li>Place of delivery – At the place agreed upon by the parties at the time of contract. Where the place has not been decided, they are to be delivered at a place at which they are at the time of sale. </li></ul><ul><li>Time of delivery – within reasonable time. </li></ul><ul><li>Expenses of delivery – are to be borne by seller unless there is a contract to contrary. </li></ul>
  9. 9. <ul><li>Delivery of wrong quantity: The seller delivers the wrong quantity to the buyer in following cases: </li></ul><ul><li>A quantity less than contracted ( buyer may reject the goods) </li></ul><ul><li>A quantity larger than contracted ( buyer may accept the goods under contract & reject the rest ), may reject the whole. </li></ul><ul><li>Goods ordered mixed with goods of different description. ( may accept or may reject ) </li></ul>
  10. 10. <ul><li>Installment deliveries : The buyer is not bound to accept the installment deliveries of the goods unless there is a contract to the contrary. </li></ul><ul><li>Delivery to carrier: operates as delivery to buyer. </li></ul><ul><li>Examining the goods on delivery – buyer must get the opportunity to examine the goods. </li></ul><ul><li>Acceptance of goods by buyer – the buyer can accept & take the delivery of goods but has no right to reject the goods after acceptance. </li></ul>
  11. 11. <ul><li>Not to return the rejected goods – When the buyer reject the goods as not being according to the contract. He is not bound to return the rejected goods. He is just required to give a clear notice of rejection of goods to the seller. </li></ul><ul><li>Liability of buyer for refusing delivery of goods – If without any reason buyer refuses to take delivery then he is responsible. </li></ul>
  12. 12. Rights of buyer <ul><li>Delivery </li></ul><ul><li>Reject </li></ul><ul><li>Repudiate </li></ul><ul><li>Notice of insurance </li></ul><ul><li>Examine </li></ul><ul><li>Against seller for breach- suit for damages, suit for price, suit for specific performance, suit for interest </li></ul>
  13. 13. Duties of buyer <ul><li>To accept and pay for possession </li></ul><ul><li>Apply for delivery </li></ul><ul><li>Reasonable time </li></ul><ul><li>Accept installment delivery </li></ul><ul><li>Intimate seller for rejection </li></ul><ul><li>Pay price </li></ul><ul><li>Pay damages for non acceptance </li></ul>
  14. 14. <ul><li>THANK YOU </li></ul>