Table of contents | |
Suits for Breach of Contract | |
Rights Against Buyer | |
Rights Against Goods | |
Rights Against Seller |
Sections 55 and 56 of the Sale of Goods Act, 1930 delineate the remedies available to sellers and buyers in cases of breach of contract.
Reciprocal Promises in Sale of Goods
- In every contract of sale, the seller is obliged to deliver the goods, while the buyer is required to pay the agreed-upon amount. This mutual obligation is known as reciprocal promise as per Section 2(f) of the Indian Contract Act.
- Reciprocal promises refer to a set of promises that form the consideration for each other in a contract. In a sale of goods contract, both parties make promises that are interdependent.
The seller has certain rights against the buyer in case of breach of contract. These rights include:
The rights against goods are the rights that a seller has over the goods sold or the goods in possession of the seller. These rights are available to the seller in case the buyer has not paid the price of goods sold.
The seller has the following rights over the goods sold:
It is the right of a seller to retain the possession of goods sold until the price is paid. The seller can exercise this right of lien in the following circumstances:
When the goods are sold on credit, the right to lien is suspended during the term of credit and exists only for the price of goods, not for any additional charges.
It is the right of the unpaid seller to stop the goods in transit when the buyer becomes insolvent. The seller can exercise this right under the following conditions:
The unpaid seller has the right to resell the goods under certain conditions:
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1. What are the common remedies for breach of contract in relation to the sale of goods? |
2. How can a seller enforce their rights against a buyer in case of a breach of contract? |
3. What rights does a buyer have against a seller in the event of a breach of contract? |
4. What is the significance of the right against goods in the context of breach of contract? |
5. What should a party do before pursuing legal action for breach of contract? |
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