Buyer’s Rights Against Seller
1. Suit for Recission of Contract and Damages for Breach of Conditions: The breach of ‘condition’ entitles the buyer to treat the contract as repudiated [Section 12 (2)]. In the event of a seller’s breach of contract, a buyer can pursue a legal remedy involving the rescission of the contract and a claim for damages. This recourse allows the buyer to seek cancellation of the contract due to the seller’s failure to meet contractual conditions. Such action may be taken when the seller wrongfully neglects, refuses to deliver the goods, or breaches warranty terms. Damages sought in this suit are typically based on prevailing prices at the time of the breach. Furthermore, the buyer may be entitled to recover interest or special damages according to applicable law, providing a crucial means of redress for buyers when faced with a seller’s breach of contract.
2. Suit of the Recovery of the Price together with Interest (Section 61): In the case of a seller’s breach of contract, a buyer has the legal remedy of seeking the recovery of the price paid for goods along with interest. This course of action becomes applicable when the seller wrongfully neglects, refuses to deliver goods, or breaches contractual terms. Damages sought are usually assessed based on prevailing prices at the time of the breach, and the interest rate may be determined by the court or specified in the contract. Additionally, the buyer may have the right to recover special damages as per applicable law. This legal recourse serves as a crucial protection for buyers, enabling them to seek redress for the non-fulfillment of contractual obligations by the seller.
3. Suit for Damages for Breach of Warranty (Section 59): In instances where a warranty provided by the seller is violated or when a breach of condition is treated as a breach of warranty by the buyer, various options are available. Firstly, the buyer can assert the breach of warranty to diminish or even extinguish the price, adjusting the payment based on the severity of the breach. Alternatively, the buyer has the option to sue the seller for damages resulting from the breach of warranty, enabling the buyer to seek financial compensation for losses incurred due to the seller’s failure to uphold the commitments outlined in the warranty terms. These remedies offer a legal framework to address breaches of warranty and ensure that buyers are appropriately compensated for any harm or financial losses suffered.
4. Suit for Damages for Non-Delivery (Section 57): In cases where the seller fails to fulfill their obligation to deliver the agreed-upon goods, the buyer has the legal right to pursue damages for non-delivery. This remedy provides the buyer with the ability to seek compensation for any financial losses or harm suffered as a result of the seller’s unjust refusal or neglect to deliver the goods as stipulated in the contractual agreement. This legal recourse aims to address the adverse consequences of the seller’s failure to meet their delivery obligations.
5. Suit for Specific Performance (Section 58): The option of specific performance empowers the buyer to seek a court order compelling the seller to fulfill the terms of the contract by delivering specific or ascertained goods. This remedy is invoked when monetary damages are deemed insufficient to address the breach, emphasizing the unique nature or significance of the goods involved. Specific performance ensures that the seller precisely fulfills the contractual obligations, acknowledging the distinct value or importance associated with the specified goods.
Buyer’s Rights Against Seller and Auction Sale
The Sale of Goods Act, 1930 plays a crucial role in safeguarding buyer rights in transactions and governing auction sales. Within its provisions, the act outlines the rights of buyers in situations of seller default and the corresponding remedies available. It meticulously addresses various aspects of auction sales, encompassing the completion of sales, withdrawal of goods, and distinguishing between auctions with and without reserve. The act grants buyers entitlements related to contract enforcement and performance while simultaneously affording sellers the right to demand payment or alternative performance and to retain control over the goods under specific circumstances. It also delineates guidelines for the examination of goods before contract conclusion and addresses implications concerning second-hand goods sold at auction. In addition, the act provides insights into the intricacies of sales by auction, covering bid retractions, conduct in auctions without reserve, and the overall conduct of such sales.
Geeky Takeaways:
- Scope and Applicability: The act governs transactions in the sale of goods in India and applies to both consumer and commercial contracts.
- Implied Conditions and Warranties: The act implies certain standard conditions and warranties in contracts of sale.
- Performance of Contract: It provides rules regarding delivery, payment, inspection, acceptance, and transfer of ownership.
- Remedies for Breach: Remedies available to parties in case of breach by the other party are covered, such as damages and return of goods.
Table of Content
- What are Buyer’s Rights against Seller?
- Key Elements under Buyer’s Rights against Seller
- Buyer’s Rights Against Seller
- Auction Sale
- Rules Governing Auction Sales
- Conclusion
- Buyer’s Rights Against Seller- FAQs