Saturday, 20 August 2011

In the contract of sale which remedies are available to buyer and seller

Remedies To Parties For the Breach of Contract of Sale :-
Following remedies are available to both the parties :


1. Suit For the Price :-
When the goods are passed to the buyer under the contract of sale and buyer refuses or neglects to pay, then a seller may sue him for the payment.

2. Goods Not Transferred :-
If goods are not passed to the buyer but according to the contract if the payment is not made in time, a seller has a right to sue for price.

3. Suit For Damages :-
If a buyer refuses to accept the goods or neglects to make payment, a seller has right to sue for damages for non-acceptance.

4. Liability of Buyer :-
A buyer is liable to the seller for any loss occurred by his negligence or refusal in taking the delivery.


1. Recovery of Prices & Interest :-
The seller or buyer may recover interest or special damages if these are recoverable by law. If the seller has received the price but does not deliver the goods to the buyer. The buyer can sue the seller for price.

Example :- "M" agrees to buy a bus from "N" and makes the payment in advance. "M" does not supply the bus. "M" can sue for refund of price with interest.

2. Suit For Losses :-
A buyer may sue the seller for damages if a seller refuses or wrongfully neglects to deliver the goods.

Example :- "X" sells 100 bags of sugar to "Y" at Rs. 5000 per bag. "X" does not supply the fixed date. The price f sugar increases. "Y" can sue for damages due to non delivery.

3. Application For Specific Performance :-
If the seller refuses to deliver the specific goods to the buyer, court may compel the seller to deliver the goods and issue the decree of specific performance on the application of buyer.

A decree is granted. When subject matter of the contract is about rare goods.

Example :- Mr. Chand promises to Mr. Khurli a rare Diamond. Later on Mr. Chand refuses. Mr. Khurli can sue for specific performance.

4. Suit For Breach Warranty :-
In some cases a buyer has also a remedy to sue where there is a breach of warranty by the seller.

The buyer is entitled to sue for damages if he has paid the price to the seller. If the buyer has not paid the price he may ask the seller to reduce the price.

Example :- "X" promises to sell and deliver the computers to "Y" on 1st April 2011. But "X" delivers on 1st May. "Y" can claim damages.

5. Suit For Cancellation :-
If there is a breach of condition by the seller, the buyer can avoid the contract and claim damages.

Example :- "X" agrees to sell to "Y" the Honda car. "X" sends Toyota car to "Y". "Y" can avoid the contract and claim damages.


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