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Sukhpreet Kaur, Lovely Professional University Unit 14: Remedies of Unpaid Seller

Unit 14: Remedies of Unpaid Seller Notes

CONTENTS

Objectives
Introduction
14.1 Unpaid Seller and his Rights
14.2 Remedies for Breach of a Contract

14.3 Summary
14.4 Keywords
14.5 Self Assessment
14.6 Review Questions
14.7 Further Readings

Objectives

After studying this unit, you will be able to:
Explain unpaid seller and his rights
Discuss remedies of breach of contract

Introduction

In last unit you have studied about law of goods. Indian business persons, conducting their
businesses against the backdrop of the Sale of Goods Act, have not found it difficult to work

out the several varieties of contracts of sale of goods as resorted to in national and transnational
businesses, such as F.O.B. (free on board), C.I.F. (cost, insurance and freight) and ex-ship. In this
unit you will learn about the knowledge of transfer of Title.
‘Goods’ means every kind of movable property, other than actionable claims and money; and
includes stocks and shares, growing crops, grass and things attached to or forming part of the
land which are agreed to be severed before sale or under the contract of sale.

14.1 Unpaid Seller and his Rights

A contract is comprised of reciprocal promises. In a contract of sale, if seller is under an obligation
to deliver goods, buyer has to pay for it. In case buyer fails or refuses to pay, the seller, as unpaid
seller, shall have certain rights.

Who is an Unpaid Seller?

A seller of goods is an unpaid seller when (i) the whole of the price has not been paid or tendered.
(ii) a bill of exchange or other negotiable instrument has been received as conditional payment

and the condition on which it was received has not been fulfilled by reason of the dishonour of
the instrument or otherwise.

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