What are the rights of a buyer, when seller commits a breach of contract under the provisions of the Sale of Goods Act, 1930?
CA Foundation · Business Laws · PYQS · January 2025
What are the rights of a buyer, when seller commits a breach of contract under the provisions of the Sale of Goods Act, 1930?
Suggested Answer and Working Notes:
(a) If the seller commits a breach of contract, the buyer gets the following rights against the seller: 1. Damages for non-delivery [Section 57 of the Sale of Goods Act,1930]: 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. 2. Suit for specific performance (Section 58): 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 the 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. 3. Suit for breach of warranty (Section 59): Where there is breach of warranty on the part of the seller, or where the buyer elects to treat breach of condition as breach of warranty, the buyer is not entitled to reject the goods only on the basis of such breach of warranty. But he may – (i) set up against the seller the breach of warranty in diminution or extinction of the price; or (ii) sue the seller for damages for breach of warranty. 4. Repudiation of contract before due date (Section 60): Where either party to a contract of sale repudiates the contract before the date of delivery, the other may either treat the contract as subsisting and wait till the date of delivery, or he may treat the contract as rescinded and sue for damages for the breach. 5. Suit for interest: (1) Nothing in this Act shall affect the right of the seller or the buyer to recover interest or special damages, in any case where by law interest or special damages may be recoverable, or to recover the money paid where the consideration for the payment of it has failed. (2) In the absence of a contract to the contrary, the court may award interest at such rate as it thinks fit on the amount of the price to the buyer in a suit filed by him for the refund of the price (in a case of a breach of the contract on the part of the seller) from the date on which the payment was made.
Topics: The Sale of Goods Act, 1930
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