Page 141 - DMGT407Corporate and Business Laws

Corporate and Business Laws

Notes contrary, the court may award interest at such rate as it thinks fit on the amount of the price from
the date on which the payment was made. However, the buyer can claim interest only when he
has a right to recover the price, i.e., he cannot claim interest when his only remedy is to claim
damages.

Self Assessment

Fill in the blanks:
15. The buyer is entitled to………………………., if already paid, in all cases of non-delivery.

16. Section 58 provides that in a contract of sale of ……………..goods, if the seller fails to
deliver the goods, the buyer may file a suit for specific performance.

5.9 Sale by Auction [S.64]

In the case of sale by auction the following rules apply:
1. When the goods are put up for sale in lots, each lot is deemed prima facie, to be the subject
matter of a separate contract of sale.

2. At an auction, the sale is complete when the auctioneer announces its completion by the
fall of the hammer or in other customary manner; until such completion any bidder may
withdraw his bid. It is also the practice to say ‘three times’.
3. A right to bid may be reserved expressly by or on behalf of the seller and where such right
is expressly reserved but not otherwise, the seller or any person on his behalf may bid at
the auction.
4. Where the sale is not notified to be subject to a right to bid on behalf of the seller, it shall
not be lawful for the seller to bid for himself or to employ any person to bid at such sale,
or for the auctioneer knowingly to take any bid from the seller or any such person. Any
sale contravening this rule shall be treated as fraudulent.
5. The sale may be notified to be subject to a reserved or upset price.
6. If the seller makes use of pretended bidding to raise the price, sale is voidable at the option
of the buyer.
Self Assessment

Fill in the blanks:
17. At an auction, the sale is complete when the auctioneer announces its completion by the
fall of the hammer or; until such completion any bidder may withdraw his bid, It is called
the practice to say ………………….
18. In the case of sale by auction, if the seller makes use of pretended bidding to raise the price,
sale is …………………at the option of the buyer.

5.10 Doctrine of Caveat Emptor

The doctrine of caveat emptor is a fundamental principle of the law of sale of goods. It means
‘CAUTION BUYER’, i.e., ‘let the buyer beware’. In other words, it is no part of the seller’s duty to
point out defects of his own goods. The buyer must inspect the goods to find out if they will suit
his purpose.

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