Page 139 - DMGT407Corporate and Business Laws

Corporate and Business Laws

Notes price can be recovered. Further, where the seller is ready and willing to deliver the goods
and requests the buyer to take delivery, which the buyer does not do within a reasonable
time, the seller may recover from the buyer: (i) any loss occasioned by the buyer’s refusal or
neglect to take delivery, and (ii) a reasonable charge for the care and custody of the goods.
3. Suit for Interest (S.61): When under a contract of sale, the seller tenders the goods to the
buyer and the buyer wrongfully refuses or neglects to accept and pay the price, the seller
has a further right to claim interest on the amount of the price. In the absence of a contract
to the contrary, the court may award interest at such rate as it thinks fit on the amount of
the price. The interest may be calculated from the date of the tender of the goods or from
the date on which the price was payable. It is obvious that the unpaid seller can claim
interest only when he can recover the price, i.e., if the seller’s remedy is to claim damages
only, then he cannot claim interest.

Self Assessment

Fill in the blanks:
13. The right of stoppage in transit is earned only where the right of lien is lost and is
available only where the buyer has become………………….
14. The ……………………..in case of resale is the difference in the contract price and the price
realised on such resale plus the expenses of resale.

5.8 Buyer’s Remedies against Seller

The buyer has the following rights against the seller for breach of contract: (i) damages for
non-delivery (s.57); (ii) right of recovery of the price; (iii) specific performance (s.58); (iv) suit for
breach of condition; (v) suit for breach of warranty (s.59); (vi) anticipatory breach (s.60);
(vii) recovery of interest (s.61).

Damages for Non-delivery

Section 57 provides that 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. The measure of damages
is as in the case of a suit for non-acceptance under s.56, i.e., the difference between the contract
price and the market price at the time when the goods were to be delivered or, if no time for
delivery was fixed, from the time of refusal to delivery. This is if the goods are readily available
in the market.

Did u know? If the buyer contracted to purchase the goods for resale and this fact was
known to the seller, then the buyer may recover from the seller the difference between the
contract price and the resale price.

Right to Recover the Price

The buyer is entitled to refund of price, if already paid, in all cases of non-delivery.

Specific Performance

Section 58 provides that in a contract of sale of specific or ascertained goods, if the seller fails to
deliver the goods, the buyer may file a suit for specific performance. The court may, at its

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