REMEDIES FOR THE

BREACH OF CONTRACT
OF SALE
Sales of goods act 1930
General Principles of Indian Contract Act 1872 are
applying to the contract of sale also

1.Remedies available to Sellers against Buyers: The

following are the remedies are available under Sale of
Goods Act, 1930 to the sellers in case of breach made by
the buyer:

Suit for the price: According to the section 55 Seller has

right to sue the buyer price of goods. when under a
contract the good has passed to him after which he
refuses to pay for the goods.
Recovery of losses in case of re-sale of good while exercising
the right of lien/stoppage of good in transit:
According to section 54 if the goods are of perishable nature or
the unpaid seller has exercised his right of lien or stoppage in
transit after giving notice to the buyer of his intention to sell the
good if the buyer doesn’t pay him within a reasonable time and
after selling it to a third party in a lower price can sue the
original buyer for the losses, he sustained due to original buyer’s
breach.

Damages for non-acceptance:

According to section 56 when under a contract of sale buyer has
sold a good to a seller and afterwards the buyer is wrongfully
refusing to accept and pay for the goods; seller can sue the
buyer for non-acceptance.
2. Remedies available to Buyers against Sellers.

The following are the remedies under Sale of Goods Act, 1930
which are available to the buyers against the seller in case of
breach.

Damages (Compensation) for non-delivery: According to section

57 when a seller has sold a good and later wrongfully refuses to
deliver the goods to the buyer; buyer can sue the seller for
damages for non-delivery of goods.

It should be noted that a reasonable time must be given to the

seller for making the of the good. Furthermore, if the buyer has
not informed the time period in which it is to be delivered by
giving notice under section 55 of the Indian Contracts Act, seller
cannot sue for damages.
Damages for breach of warranty:

According to section 59; in case where there is breach of warranty

by the seller or the buyer has treated as breach of condition as
breach of warranty under section 13, the buyer does not have the
right to rescind the contract. In these cases, buyer has two options.
First is to set up against the seller the breach of warranty in
weakening of the price and the second option available is to sue the
seller for damages for breach of warranty.

Specific Performances:

The section 58 states that subject to the provision of Specific Relief

Act 1877, if the contract is breached, the Court may, on the request
of the buyer, giver the directions to the seller to perform the
contract in a particular and specified manner. This order is passed by
the court may or may not carry terms and conditions with respect of
price, mode of delivery, etc.
3. Remedies available to both Buyers & Sellers:

Suite for Repudiation of contract before due

date/anticipatory breach:

Provisions under section 60, in case where either buyer or

seller rescinds the contract before the due date or in other
words refuses before the due date to perform the terms of
the contract on the due date, the other party has two
options. First, wait for the due date and after the non-
performance by the other party sue him for damages.
Second, sue immediately without waiting for the actual non-
Performance of the terms of the contract.
Interest by way of damages and Special Damages:

Section 61 relates with the right to recover interest or

special damages where interest or special damages may be
recoverable or in the case where recovery of the money
paid where the consideration for the payment of it has
failed has to be made. The court may award or directs the
interest at the rate which it deems fit to the seller for the
amount of price from the date of the delivery of the goods
or from the date on which the price was payable or to the
buyer for the refund of price in case of breach of contract
from the date the payment was made.
About

 Dharender singh ( An educator )

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