Suraj sold his car to Sohan for 1,75,000. After inspect ion and satisfaction, Sohan paid - 75,000 and took possession of the car and promised to pay…
CA Foundation · Business Laws · RTP · September 2024
Suraj sold his car to Sohan for 1,75,000. After inspect ion and satisfaction, Sohan paid - 75,000 and took possession of the car and promised to pay the remaining amount within a month. Later on, Sohan refuses to give the remaining amount on the grounds that the car was not in good condition. Advise Suraj as to what remedy is available to him against Sohan under the Sale of Goods Act, 1930.
Suggested Answer and Working Notes:
As per section 55 of the Sale of Goods Act,1930, an unpaid seller has a right to institute a suit for price against the buyer personally. The said Section lays down that: (i) Where under a contract of sale the property in the goods has passed to buyer and the buyer wrongfully neglects or refuses to pay for the goods, the seller may sue him for the price of the goods [Section 55 (1) ]. (ii) Where under a contract of sale the price is payable on a certain day irrespective of delivery and the buyer wrongfully neglects or refuses to pay such price, the seller may sue him for the price. It makes no difference even if the property in the goods has not passed and the goods have not been appropriated to the contract [Section 55 (2) ]. This problem is based on the above provisions. Hence, Suraj will succeed against Sohan for recovery of the remaining amount. Apart from this, Suraj is also entitled to: (1) Interest on the remaining amount (2) Interest during the pendency of the suit. (3) Costs of the proceedings.
Topics: The Sale of Goods Act, 1930
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