Kartik agreed to sell his laptop to Vasant for a price to be fixed by Kusum a hardware engineer. However, before the delivery of the laptop, Kartik…
CA Foundation · Business Laws · PYQS · September 2024
Kartik agreed to sell his laptop to Vasant for a price to be fixed by Kusum a hardware engineer. However, before the delivery of the laptop, Kartik changed his mind and did not share any particulars and configuration of the laptop with Kusum, which made her unable to do the valuation. Kusum refused to do valuation. Vasant needed laptop for his project, so he promised Kartik that, if the laptop is delivered to him, he would pay a reasonable price for it However, Kartik decided not to sell his laptop to Vasant. Now, Vasant wants to know from you, being a legal expert, whether Kartik is bound by his promise as he agreed earlier to deliver his laptop to him at a reasonable price. If he does not agree to deliver what is the other remedy available to Vasant? Advise, referring to the provisions of the Sale of Goods Act, 1930.
Suggested Answer and Working Notes:
Section 10 of the Sale of Goods Act,1930 provides for the determination of price by a third party. 1. Where there is an agreement to sell goods on the terms that price has to be fixed by the third party and he either does not or cannot make such valuation, the agreement will be void. 2. In case the third party is prevented by the default of either party from fixing the price, the party at fault will be liable to the damages to the other party who is not at fault. In the instant case, as Kusum cannot do valuation of laptop due to non-sharing of particulars and configuration by Kartik who was bound by his promise, the agreement will be void. The other remedy available to Vasant is that he can claim damages from Kartik as he will be liable for the damages to Vasant who is not at fault.
Topics: The Sale of Goods Act, 1930, The Sale of Goods Act, 1930, The Sale of Goods Act, 1930
Related Questions in this Topic
- With reference to provisions of the Sale of Goods Act, 1930, answer the following: (i) What are the consequences of the ...
- (i) The Institute of Science and Technology, Dehradun (the buyer), placed an order for various chemicals worth - 1,50,00...
- Adarsh visited an authorized car showroom and purchased a car of his choice without conducting a detailed inspection. Af...
- The Institute of Science, Pune (the buyer), placed an order for various chemicals worth - 1,50,000 from a supplier in De...
- State the various essential elements involved in the sale of unascertained goods and their appropriation as per the Sale...