THE SALE OF GOODS ACT 1930
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Remedies of Buyer Against the Seller
1. Damages for non-delivery : Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue the seller for damages for non-delivery. Example: 'A' a shoe manufacturer, agreed to sell 100 pairs of shoes to 'B' at the rate of 1050 per pair. A' knew that 'B' wanted the shoes for the purpose of further reselling them to C' at the rate of 1100/- per pair. On the due date of delivery, 'A'failed to deliver the shoes to 'B. In consequence, 'B'could not perform his contract with 'C'for the supply of 100 pairs of shoes. In this case, 'B'can recover damages from A'at the rate of 50/- per pair (the di erence between the contract price and resale price).
2. Suit for specific performance: Where the seller commits of breach of the contract of sale, the buyer can appeal to the court for specific performance. IThe court can order for specific performance only when the goods are ascertained or specific. Example: 'A' agreed to sell a rare painting of Mughal period to 'B'. But on the due date of delivery, 'A' refused to sell the same. In this case, 'B' may file a suit against 'A for obtaining an order from the Court to compel A' to perform the contract (i.e. to deliver the painting to 'B' at the agreed price).
3. Suit for breach of warranty: Where there is breach of warranty on the part of the seller, or where the buyer selects to treat breach of condition as breach of warranty, the buyer is not entitled to reject the goods only on the bases of such breach of warranty. But he may (i) set up against the seller the breach of warranty in diminution or extinction of the price; or (ii) sue the seller for damages for breach of warranty 4. Repudiation of contract before due date: Where either party to a contract of sale repudiates the contract before the date of delivery, the other may either treat the contract as subsisting and wait till the date of delivery, or he may treat the contract as rescinded and sue for damages for the breach .
5. Suit for interest (1) Nothing in this Act shall affect the right of the seller or the buyer to recover interest or special damages, in any case where by law interest or special damages may be recoverable, or to recover the money paid where the consideration for the payment of it has failed. . (2) In the absence of a contract to the contrary, the court may award interest at such rate as it thinks fit Example 1: In case of a sale of cigarettes which turned out to be mildewed and unfit for consumption, damages were awarded on the basis of the difference between the contract price and the price released .
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