Sale of Goods

(Remedy)

Anika Rafah
Lecturer
North South University
 Unpaid seller
 a seller of goods is an unpaid seller within the meaning of the
Sale of Goods Act when the whole price has not been paid or
tendered or when 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.
 These conditions must be fulfilled:
 He must be unpaid and the price must be due.
 He must have an immediate right of action for the price.
 A bill of exchange or other negotiable instrument was received
but the same has been dishonoured.
 Rights Of Unpaid Seller
 The unpaid seller has following important rights against goods:
 Right of Lien :-
For the recovery of price an unpaid seller has a right to keep the
goods in his own possession.
 Right of Stopping :-
If buyer becomes insolvent, an unpaid seller has a right of stopping
the goods in transit.
 Right of Resale :-
An unpaid seller is considered the owner of the goods until he is
not paid by the buyer. So he has a right to sell his goods subject to
few conditions.
 Cont….
 The unpaid seller has following important rights against buyer
personally:
 Suit For Price :- If the goods have passed to the buyer and buyer
refuse to pay the price, the seller can sue for price.
 Suit For Damages For Non Acceptance :- If buyer refuses to
accept and pay for the goods, the seller has the right to sue him
for damages non-acceptance. He can recover only damages and
not full price.
 Suit For Interest & Special Damages :- The unpaid seller can
recover the reasonable interest on the unpaid price goods sold.
The seller can also sue the buyer for special damages where both
the parties are aware of such loss at the time of contract.
 Rights of Buyer
 A buyer also has certain remedies against the seller who commits
a breach. These are:
 Suit for Damages for Non-Delivery- When the seller wrongfully
neglects or refuses to deliver the goods to the buyer, the buyer
may sue the seller for damages for non-delivery. This is in
addition to the buyer's right to recover the price, if already paid,
in case of non-delivery.
 Suit for specific performance- When the goods are specific or
ascertained, a buyer may sue the seller for specific performance
of the contract and compel him to deliver the same goods. The
court orders for specific performance only when the goods are
specific or ascertained and an order for damages would not be an
adequate remedy. Specific performance is generally allowed
where the goods are of special significance or value e.g. a rare
paining, a unique piece of jewellery, etc.
 Cont….
 Suit for rescission of contract and for damages- Where there is a
breach of condition, the buyer may terminate the contract and
also clam damages.
 Suit for Breach of Warranty- Where there is a breach of warranty
by the seller, or where the buyer elects or is compelled to treat
the breach of condition as breach of warranty, the buyer cannot
reject the goods. The buyer may, (a) set up the breach of warranty
in extinction or diminution of the price payable by him, or (b) sue
the seller for damages for breach of warranty.
 Suit for Interest- In case of breach of the contract on the part of
the seller, the buyer may sue the seller for interest from the date
on which the payment was made.