Sony, a friend of Priya wanted to buy her two-wheeler. Priya agreed to sell her two-wheeler to Sony and it was decided that price of her two-wheeler…

CA Foundation · Business Laws · MTP · January 2025
Sony, a friend of Priya wanted to buy her two-wheeler. Priya agreed to sell her two-wheeler to Sony and it was decided that price of her two-wheeler will be fixed by Priya's father, who is an auto dealer. Priya immediately handed over the keys to Sony. However, Priya's father refused to fix the price as he did not want Priya to sell her vehicle. Priya expressed her inability to sell the two-wheeler to Sony and asked for return, but Sony refused to return the same. Explain - (i) Can Priya take-back the vehicle from Sony? (ii) Will your answer be different, if Priya had not handed over the vehicle to Sony?

Suggested Answer and Working Notes:

In case the third party is prevented from making the valuation by the default of either party, the party not at fault may maintain a suit for damages against the party in fault. (i) In the instant case, Priya handed over the keys of her two -wheeler to Sony and it was decided between them that price of the vehicle will be fixed by Priya’s father. However, Priya’s father refused to fix the price as he did not want Priya to sell her vehicle. As the keys have already been handed over to Sony, Priya cannot take back the keys from Sony and Sony shall pay reasonable price to Priya for the two -wheeler. (ii) If Priya had not handed over the vehicle to Sony, the contract could have been avoided as Priya’s father refused to fix the price of the vehicle.

Topics: The Sale of Goods Act, 1930

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