What do you mean by suit for specific performance? State any two conditions when court allows this remedy according to provisions of the Sale of…
CA Foundation · Business Laws · MTP · May 2026
What do you mean by suit for specific performance? State any two conditions when court allows this remedy according to provisions of the Sale of Goods Act, 1930?
Suggested Answer and Working Notes:
(a) (i) Suit for Specific Performance (Section 58 of the Sale of Goods Act,1930): 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 the goods are ascertained or specific. This remedy is allowed by the Court subject to these conditions: (a) The contract must be for the sale of specific and ascertained goods. (b) The power of the court to order specific performance is subject to provisions of Specific Relief Act of1963. (c) It empowers the Court to order specific performance where damages would not be an adequate remedy. (d) It will be granted as remedy if goods are of special nature or are unique. (ii) Right of Re-Sale [Section 54 of the Sale of Goods Act,1930]: The right of re-sale is a very valuable right given to an unpaid seller. In the absence of this right, the unpaid seller’s other rights against the goods that is lien and the stoppage in transit would not have been of much use because these rights only entitled the unpaid seller to retain the goods until paid by the buyer. The unpaid seller can exercise the right to re-sell the goods under the following conditions: (i) Where the goods are of a Perishable in Nature: In such a case, the buyer need not be informed of the intention of resale. (ii) Where he gives notice to the buyer of his intention to re-sell the goods: If after the receipt of such notice the buyer fails within a reasonable time to pay or tender the price, the seller may resell the goods. (iii) Where an unpaid seller who has exercised his right of lien or stoppage in transit re-sells the goods: The subsequent buyer acquires the good title thereof as against the original buyer, despite the fact that the notice of re-sale has not been given by the seller to the original buyer. (iv) A re-sale by the seller where a right of re-sale is expressly reserved in a contract of sale: Sometimes, it is expressly agreed between the seller and the buyer that in case the buyer makes default in payment of the price, the seller will re-sell the goods to some other person. In such cases, the seller is said to have reserved his right of re-sale and he may re-sell the goods on buyer’s default. (v) Where the property in goods has not passed to the buyer: The unpaid seller has in addition to his remedies a right of withholding delivery of the goods. This right is similar to lien and is called “quasi-lien”. This is the additional right used in case of agreement to sell.
Topics: The Sale of Goods Act, 1930
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