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Sales of Goods - 1

Lecture # 13SALE OF GOODS ACT

ACT NO. III OF 1930

Buyers Rights

• Buyers Rights (or Seller’s Duties)

• Part Delivery

• Time of Delivery

• Place of Delivery

• Delivery to Carrier

Seller’s Rights (or Buyer’s Duties)

• Delivery or Wrong Quantity

• Delivery of Goods of Wrong Description

• Neglect of Refusal of Delivery

• Acceptance of Goods

Unpaid Seller

1. Introduction:Unpaid seller means a person who has sold the good for a price but price has not been paid to him unpaid seller has rights against the goods and buyer.

Unpaid Seller2. Definition of unpaid seller:According to Sec 45, the seller of goods is deemed to be an unpaid seller.(i) When the whole of the price has not paid or tendered.(ii) When a bill of exchange or other negotiable instrument has been received as a condition payment, and the condition on which it has been received remains unfulfilled by reason of dishonor of the instrument or other wise.

Rights of Unpaid Seller

(i) Suit for price:Where property has passed to the buyer, and the buyer wrongfully refuses or neglect to pay for the goods, the seller may sue him for the price of the goods.

Rights of Unpaid Seller

(ii) Suit for disclaimer:If buyer disclaims the contract before the date of the delivery, the seller may treat the contract as subsisting and wait till the date of delivery or may tread the contract as rescinded and sue for damages for breach.

Rights of Unpaid Seller

(iii) Suit for damages for non-acceptance:If buyer refused to accept and pay for the goods the seller has right to sue for damages for non-acceptance.

Rights of Unpaid Seller

(iv) Suit for interest and special damages:Unpaid seller can recover the interest on the unpaid price. He can also sue for special damages.

Rights of Unpaid Seller

• Right of Re sale– Unpaid seller can resale the goods:

Conditions:(a) Goods should be of perishable nature.(b) Right of resale should be expressed in contract.(c) Buyer has not paid.(d) Buyer has received the notice from seller.

Rights of Unpaid Seller

• Unpaid Seller’s Lien– Lien is the right to retain possession and

refuse to deliver them to the buyer until the price due in respect of them is paid to the buyer.(i) Where the goods have been sold without any condition.(ii) Where the goods have been sold on credit, but the term of the credit has expired.(iii) Where the buyer becomes insolvent, even though the period of credit may not have yet expired.

Rights of Unpaid Seller

• Stoppage in Transit– Modes of stoppage:

(i) By taking possession of the goods.(ii) By giving notice of his claim

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Sale of Goods - 2