Prepared By

VISHAL GOEL

 Till, 1930 transaction relating to sale and purchase of goods were regulated by the Indian contract Act, 1872.  In 1930, Section 76 to 123 of the Indian Contract Act,1872 were replaced and a separate Act called µ The Indian Sale Of Goods Act was passed.  Came in to existence on 1st July 1930.  Based on English sale of goods act 1893.   All general principles of law of contract applied in sale of goods act also. 

 It deals with sale not with mortgage or pledge.  It deals with goods but not with other movable property.  immoveable goods covered by transfer of properties act.

 Sec-4 ³ contract of sale is a contract whereby the seller transfers or agrees to transfer the property in gods to the buyer for a price. .´  It is generic term include both dale and agreement to sell.

 Movable goods  Price: Price or consideration of goods must be money.  Form: May be made in writing or by word of mouth. . Property: Transfer of ownership in goods. Buyer & Seller.  Parties: Two parties only.

 Seller and Buyer There must be at least two parties: . . A person cannot by his own goods. as the property in the goods have to pass from one person to another.  The buyer and the seller must be different persons.Seller and buyer.

 Goods means every kind of movable property  other than actionable claims and money and includes stock and shares. . growing crops. Thing attached to earth like µStanding crop or µtree¶ is µgoods¶ only when it is agreed to be served before sale or under contract of sale. plant erected at site etc. grass. building. Actionable claim is a claim which can be enforced by going to the court. since the creditor can take action against the debtor to enforce the claim by going to a court of law. Thus. Thus. An overdue debt is an actionable claim. immovable are not goods and the Act does not apply to sale of immovable property like land. though it can be assigned. 1. Ex: a debt due from one person to another is an actionable claim. an actionable claim cannot be bought and sold as goods. 2. and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.

Mere transfer of possession can not be termed as a sale.¶  General property means all ownership rights and special property means limited rights.2(11) µProperty means general property in goods and not merely a special property. . Transfer of property means transfer of ownership.  Sec.

 The consideration for the contract of sale must be money.  However consideration may be partly in money and partly in goods. .  If goods are exchanged against goods the transaction is barter and not covered by the act. NO SPECIAL FORMALITIES ARE REQUIRED FOR CONTRACT OF SALE. IT MAY BE IN WRITING OR ORAL OR IMPLIED.

Essentials elements of a Valid Contract .

1. ( immediate. Implied from the conduct of parties . Express or implied 1. by installments) 3. Express ± in writing. by word of mouth. Delivery and Payment 1. at some future dates. partly 2. Offer and Acceptance 2.

 When property in the goods is to be transferred at some future date and not at the time of contract. the contract of sale is termed as an agreement to sell. When property is transferred from seller to buyer at the time of formation of contract. an absolute sale occurs. .

Contract of Sales includes [Sec-4(3)] Sale Agreement to sell i..e.e.. where the ownership In Goods is transferred i. where the transfer of ownership in goods is to take place at a future time or subject to Fulfillment of some condition .

 Sale  WHEN THERE IS A TRANSFER OF OWNERSHIP OF GOODS FROM ONE PERSON TO ANOTHER PERSON FOR SOME PRICE. THEN SUCH AGREEMENT IS KNOWN AS AGREEMENT TO SELL.   Essentials:      Property Movable goods Price Parties Form:. THE SAID TRANSACTION IS CALLED SALE. .written or oral  Agreement to sell  WHEN THE TRANSACTION OF SALE IS TO OCCUR ON A FUTURE DATE DEPENDING UPON THE FULFILLMENT OF A CONDITION.

 Agreement to sell Transfer of ownership of goods takes place at a future time. He can sue the buyer for damages even though the goods are in the possession of the buyer. 1. seller will have to pay for loss. 4. Buyers gets a right to enjoy the goods against the whole world including seller. 3. 4. Transfer of risk of loss of goods takes place immediately because ownership is transferred. does not pass on to buyer immediately. 5. 2. 6. 3. 7. 2. property & risk of the goods pass on to the buyer loss will be borne by the buyer even if the possession is with seller. .  Sale Transfer of ownership of goods takes place immediately It is an executed contract. Seller can sue the buyer for the price even though the goods are in his possession. 7. Transfer of risk of loss of goods does not take place because ownership is not transferred. Buyers does not get such right to enjoy the goods. It is an executory contract.1. 5. 6.

2. It means an agreement under  which goods are left on hire and  under which the hirer has an option to purchase them in accordance with the term of the agreement and  includes the agreement under which: 1. Possession of goods is delivered by the owner thereof to a person on condition that such person pays the agreed amount in periodical installments. Such a person has a right to terminate the agreement at any time before the property so passes. The property in the goods is to pass to a such person on the payment of last installment. 3. .

. grass. growing crops. trademark. copyright. electricity. gas. debentures. patents. Stock and shares 2. stock. water. goodwill. and includes the following: 1. trees to be cut and their log wood delivered. grass and thing attached to or forming part of the land which are agreed to be served before sale or under the contract of Sale Examples: Old rare coins. Goods mean every kind of movable property other than actionable claims and money. shares. Growing crops.

 Actionable claim  Money  Immovable property .

Types of Goods Existing Goods Future Goods Contingent Goods Specific Gods Ascertained Goods Unascertained Goods .

those owned or possessed by the seller.. Existing goods are such goods as are in existence at the time of the contract of sale.  Kinds of existing goods  Specific goods  Ascertained goods  Unascertained goods . i.e.

is not illegal. Future goods: means goods to be manufactured or produced or acquired by the seller after making the contract of sale. This is an example of ³agreement to sell´  Ex: X agrees to sell to Y all the crops to be grown at his farm in Haryana during the year 2009 for a sum of Rs. a contract of sale of future goods. under the Act. though the actual sale of future goods is not possible.1.000 quintals of potatoes to be grown on A¶s field.g. . e.00.000. Thus. This is an agreement to sell future goods and not a sale. 1.

This is an agreement to sell contingent goods because the availability of crops depends on its sale by Z. Contingent Goods: .Goods.: x agrees to sell 10 units of an article provided the ship.g. the acquisition of which by the seller depends upon happening/ non ± happening of an uncertain event (contingency). .  Ex: X agrees to sell to Y all the crops to be grown at Z¶s farm in Delhi during the season of 2009 for a sum of Rs.00. which is bringing them reaches the port safely. 2.000 if Z sells the same to X.  E.

 Existing Goods. b) ascertained goods. c) unascertained goods. .  a) specific goods.goods which are either owned or possessed by the seller at the time of contract of sale.

The goods are ascertained when out of a mass of unascertained goods. . The shop owner agrees to sell. a table. agreed to sell B a particular model TV identified by the customer out of the several TVs on display.  Eg. They are goods defined by description only.Goods identified and agreed upon at the time a contract of sale is made Eg: A car. ascertained and specific are commonly used for the same kind of goods. This sale agreement is for unascertained goods as the specific TV is yet to be identified.  Eg: . a TV shop owner.  Unascertained Goods: - Goods not identified at the time of making of the contract of sale. A visits a TV sales showroom and agrees to buy a TV out of the 50 models on display. The terms.  Ascertained Goods: - Goods identified subsequent to the formation of the contract of sale. the quantity contracted for is identified and set aside. They are no definite and specific. Specific Goods: .A.

Here. X agrees to buy one Maruti car 800 and the seller agrees to sell. 1 particular car identified and agreed upon at the time when the contract of sale is made is specific goods and other 9 car are unascertained goods. . 9 cars are unascertained goods after the identification of 1 particular car to be sold. 10 cars will be classified as under: 1. Ex: X goes to Maruti Car Showroom where 10 Maruti cars have been displayed. 2. 10 cars are unascertained goods before the identification of a particular car to be sold. 3. Such one particular car to be sold is an ascertained goods.

Contract of sale is void if 3 conditions are satisfiedThere must be contract of sale for specific goods. 109 bags had been stolen at the time of making the contract. 3. Goods must have perished or become so damaged The seller must not be aware about the destruction of goods. State the legal position If (i) if unknown to X. all bags had been stolen before the contract was made. the cement had becomes stolen as a result of heavy rainfall. ( based on impossibility of performance) Ex: X sold to Y all 700 bags of cement lying in his Delhi godown. (iii) if unknown to X. In case of Contract of Sale Sec-7:  1. 2. . (ii) If unknown to X.

This agreement became void and X could not recover the price from Y. 1. However the horse died on the third day. 3. It becomes void if 4 conditions are satisfied: An agreement to sell specific goods Goods have perished or damaged Not any fault by seller or buyer Risk must not have passed to the buyer i. the goods must have perished before the agreement to sell becomes sell. The horse was delivered on trial for 8 days.e. Ex: X agrees to sell a particular horse to Y on the expiry of 8 days. 4. 2. without any fault of either buyer or seller. .

Lawful acquisition of goods by government. 2. 3. Damage of goods in such a manner that they loose their commercial value. Physical destruction of goods. The possible causes of perishing of goods:1. 4. . Loss of goods by theft.

(Sec.in case of specific goods the contract of sale becomes void and both parties are excused from the performance.  Goods perishing before the sale but after the agreement to sell.in case of specific goods such contract is void ab initio as the performance of the contract is impossible due to destruction of subject matter.:.8) . Goods perishing before formation of the contract..

8 applies in this case also which says µwhere there is an agreement to sell specific goods.¶ . Effect of perishing of future goods. the agreement is thereby avoided.:.Sec. and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer.

2(10) defines the price as µthe money consideration for the sale of goods.¶  Price has to be in terms of money. . Sec.

 It is determined by the course of dealings of the parties. . when price is not fixed by any of the above modes a µreasonable price¶ is considered as the price of the contract. 3 modes of determining the price  Price is mentioned in the contract.  The manner of fixing the price is mentioned in the contract.

 Earnest money: means security for due performance of the contract.  Advance payment: means the payment of the price of the goods in advance which is to be adjusted against the ultimate total price of the goods. .

 When time is stipulated regarding delivery of goods: time of delivery of goods is normally considered essence of the contract. .  Thus if payment is not made in time the seller can not avoid the contract but can claim damages. When time is stipulated regarding the payment of price : Time of payment is not considered the essence of the contract unless a different intention appears from the terms of the contract. Thus non performance at stipulated time will render the contract voidable at the option of the buyer.

exchange .  A contract contains some stipulations or terms.  A stipulation which is collateral or incidental to the contract is called a Warranty. . provision. requirement.  A stipulation essential to the contract is called a Condition. or specification of a bargain. etc. A Stipulation refers to demand.

Ex: Ravi asked a car dealer to suggest him a car suitable for touring purposes. The dealer suggested a µBuggati Car¶. Accordingly. ( Baldry Vs. therefore entitled to reject the car and have refund of the price paid. Ravi was. Ravi purchased it but found it unsuitable for touring purpose.  the breach of which gives rise to a right to treat it as repudiated or broken. What is a Condition? [Section 12 (2)] A condition is a stipulation  essential to the main purpose of the contract. Marshall) . In this case. suitability of car for touring purpose was a condition of contract.

 A warranty is a stipulation 
collateral to the main purpose of the contract,  the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated or broken. Ex: Ashok asked a car dealer to suggest him a good car and while suggesting the car, the dealer said that it could run for 20 km per litre of petrol. But the car could run only 15 kms per litre of petrol. In this case, the statement made by the car dealer was a warranty. Ashok was, therefore not entitled to reject the car but he was entitled to claim the damages.

 Express Conditions and Warranties: 
Desire to buy a TV of particular Model No. is express condition  In an advertisement by Khaitan fans, guarantee for 5 years is an express warranty. 

Implied Conditions and warranties

 Implied Conditions:  Condition as to title (Section 14): There are 3 implied conditions on the part of seller w.r.t. title to the goods. (i) Sale ± seller has a right to sell the goods. ATS ± seller will have the right to sell at the time when property is to pass. (ii) Buyer shall have and enjoy possession of goods. (iii) Goods shall be free from any charge or encumbrance.

packing particulars. trade mark. Sale by description (Section 15): It means that there is a implied condition that the goods shall correspond with the description. . brand name. It is obvious that the goods supplied should correspond with the description. or particulars of the ship where the goods are to be landed. A description can be physical appearance. Breach of this warranty entitles the buyer to reject the goods.

Should be latent one. (iii) Goods shall be free from any defect. (ii) Buyer shall have a reasonable opportunity of comparing the bulk with the sample. . The defect shall not be apparent on reasonable examination. Sale by sample (Section 17): There are 3 implied conditions when the goods are supplied according to the sample: (i) Bulk shall correspond with the sample in quality.

(ii) Where the buyer relies on the seller¶s skill of judgment. Warranty as to quality or fitness (Section 16): There is an implied warranty as to the quality or fitness under the following circumstances. (iv) By custom or usage of trade. However..g. (iii) Where goods are bought by description from seller there is an implied condition that the goods shall be reasonably fit for such purpose. if the buyer selects himself then there is no implied condition as to fitness. (i) Where goods are ordered for specific purpose and the same is made known to seller. For e. . sale of eatables shall be fit for food. implied condition of fitness is annexed to a contract of sale.

. Warranty as to quiet possession free from encumbrances. The buyer shall have and enjoy quiet possession of the goods [Section 14 (b)]. The buyer shall have a right to sell the goods [Section 14 (a)]. The goods shall be free from any charge in favor of any 3rd party not declared or known to the buyer before or at the time when the contract is made [Section 14 (c)].

 It means ³let the buyer beware´.  In a contract for sale of goods there is no implied warranty or condition as to the quality or fitness for any particular purpose of goods. That is. the buyer purchases the goods at his risk relying on his own skill and judgment (Section 16). the buyer must take care.  There are certain cases where the Doctrine of Caveat Emptor does not apply.  Therefore. .

 Fraud: Where the seller is guilty of fraud or conceals a defect. he is liable. there is an implied condition that the goods are of merchantable quality. .  For specific purpose: Where the goods are ordered for a specific purpose and seller is made aware of it and the buyer relies on the skill or judgment of the seller.  Merchantable Quality: Where (i) sale is by description and (ii) purchased from the seller who deals in goods of that description. Custom or Usage of Trade: Implied warranty/condition as to quality or fitness for particular purpose may be annexed by the custom or usage of trade. there is an implied condition that the goods shall be reasonably fit.

 Section 33 states that delivery may be made by doing anything which has the effect of putting the goods in possession of the buyer or authorized person on behalf of buyer. .  Deliver of goods may be actual or symbolic. Section 2(2) defines delivery as voluntary transfer of possession of goods from one person to another.

Part delivery amounts whole delivery (Section 34). Buyer to apply for delivery (Section 35).  Goods delivered at distant place at sellers risk (40). Expenses as a general rule to delivery must be borne by the seller (Section 36(5)).Delivery and Payment (Section 31). Delivery to be made to buyer (Section 33).          . Place of delivery.  Installment delivery not to be accepted by buyer (38(1)). Time of delivery (Section 36(2)). Demand at reasonable hour (Section 36(4)). Mode of delivery (Section 36(1)): Depends on contract.

 Buyer not bound to return the rejected goods (43): Mere intimation to seller that he refuses to accept is sufficient. he retains w/o informing seller of his rejection. . When he pledges to a sub-purchaser. When after lapse of reasonable time.  When goods are accepted? (42) When he intimates seller. Goods are then at seller¶s risk. Acceptance of goods depends on the opportunity to examine the goods delivered (41).

 To sue for damages for breach of warranty.  To recover amount paid if seller fails to deliver.  Reasonable opportunity to examine goods.  To repudiate contract on seller¶s breach of contract. To receive delivery of goods.  To claim interest on the refund of the price in case of breach of contract. .  To sue for damages for non-delivery of goods.

 To compensate the seller for any loss occasioned by his neglect or refusal to take delivery of the goods and also for reasonable charge for care and custody of the goods.  To apply for the delivery of goods as the seller is not bound to deliver until the buyer applies for delivery.Duties:  To pay for the goods and take delivery thereof. .

to exercise his right of stoppage in transit. . to exercise his right of resale.  To receive compensation or sue buyer for not taking delivery of the goods.  To receive reasonable charge for care & custody of the goods.  If he is unpaid seller then ± to exercise his right of lien. To receive the price of the goods.  To sue for damages on buyer repudiating the contract.  To recover interest from the buyer for price due.

Duties:  To deliver the goods when buyer demands.  To refund the amount paid by the buyer in case he fails to deliver the goods.  To compensate the buyer in case he repudiates the contract. .  To give reasonable opportunity to the buyer to examine the goods.  To compensate the buyer in case of delivery of wrong quantity.

he merely transfer the physical possession and not the ownership of goods.  And the agent is having possession of goods but is not the owner of goods.  Example: Where a principal sends goods to his agent.  Here. . the principal is the owner of the goods but is not having possession of goods. Meaning of Passing of Property: Transfer of ownership and not the physical possession of goods.

Who can take action against third party: owner 3. 5. In case of insolvency of a seller whether the official receiver or assignee can take the possession of goods from buyer: if ownership is not transferred . 1. Whether a seller can sue for price: Seller if ownership is transferred to buyer. 4. It is necessary to know the exact time. Who shall bear the risk: Owner 2.The Time of transfer of ownership of goods decides various rights and liabilities of the seller and the buyer. In case of Insolvency of a buyer whether the official receiver or assignee can take the possession of goods from seller: The official receiver or assignee can take the possession from seller if ownership is transferred to buyer.

 Ascertaining the time at which the ownership is transferred from seller to buyer. the goods are classified in to 3 category: 1. Unascertained goods 3. Goods sent on approval or on sale on return basis . Specific or ascertained goods 2.

 General Rule: Ownership is transferred to the buyer at such time as the parties intend it to be transferred. . conduct of the parties and the circumstances of the case. the following rules are applicable.  Ascertainment of the Intention:  Term of the contract.  Unless a different intention appears. Specific Goods: Goods identified and agreed upon at the time when a contract of sale is made.

Deliverable State: such state the buyer would be bound to take delivery of the goods under the contract. or both are postponed.. In this case X is liable to pay the price because the ownership has transferred from Y to X on making the contract even though the price has not been paid and the goods have not been delivered. It is immaterial whether the time of payment of the price or delivery of goods. A fire broke out and the entire quantity of wheat was destroyed. at the rate of Rs.  Time When the Ownership is Transferred: When the Contract is made  Ex: X bought from Y a heap(bundle) of wheat the weight of which is 1000 Kg.8 per Kg. . Sec-20 Unconditional Contract: containing no condition regarding the transfer of ownership. and agrees to pay the price on the first day of the next month and the wheat is to be delivered at X¶s godown on the following day.     Case 1: Where there is an unconditional contract for the sale of specific goods in a deliverable state.

In this case. X is liable to pay the price for the wheat which was put into bags because the ownership in respect of these goods has passes when Y has put the wheat in bags and the buyer has notice thereof. Case 2: Where there is a contract for the sale of specific goods not in a deliverable state Sec-21:  Time When the Ownership is Transferred: When the goods are put into a deliverable state and the buyer has notice thereof.8 per kg. Y filled some bags in X¶s presence. a fire broke out and the entire quantity of wheat was destroyed. and Y had to put the wheat in bags to deliver it to X.) at the rate of Rs. but before the remainder could be filled.  Ex: X bought from Y a heap of wheat (weight 100 kg. .

. and Y had to weight the wheat.  Ex: X bought from Y a leap of wheat @ Rs. In this case X is not liable to pay the price because the ownership of goods has not passed from Y to X. the wheat was destroyed by fire. Before weighing was completed. Case 3: Where there is a contract for sale of specific goods in a deliverable state but the seller has to do some act to ascertain the price:  Time When the Ownership is Transferred: When the seller has done that act to ascertain the price and the buyer has notice thereof.8 per kg.

1. If 100 bags had been separated before fire with Y¶s consent. State who shall bear the loss and why? 1. 2.  The goods must have been unconditionally appropriated by the seller or the buyer with the consent of the other. A fire broke out and the entire quantity of wheat was destroyed. Ex: X agreed to sell 100 bags of wheat to Y out of his stock of 500 bags. If no bags had been separated before fire for the purposes of delivery to Y.  . The Ownership of UG is transferred when 2 conditions are fulfilled:  The goods must have been ascertained.

 Latin Maxim : ³ Namo dat quod non habet´  Means: No one can give what he does not himself possess. .

4. 6. 3.1. 9. 5. Sale by a mercantile agent Sale by one of joint owners Sale by persons in possession under voidable contract Sale by buyer in possession before transfer of ownership Sale by unpaid seller Sale by Pawnee Sale by finder of goods Sale by official receiver or assignee Sale by owner by estoppel . 8. 7. 2.

 Meaning: Voluntary transfer of possession from one person to another. By doing anything which the parties agree 2.  Mode of Delivery: 1. By doing anything which has the effect of putting the goods into buyer¶s possession .

Actual Delivery: When goods are physically handed over to the buyer or his authorised agent. 2. 3. Constructive Delivery: Where a person who is in possession of the goods.1. Symbolic Delivery: where some symbol of the real possession or control over the goods is handed over to buyer. acknowledges to hold the goods on behalf of the buyer. .

3. 8. 10. 2. 11. 7. Payment and delivery to be concurrent Mode of delivery Effect of part delivery Buyer to apply for delivery Place of delivery Time of delivery Delivery when the goods are in possession of a third party Demand of delivery to be treated as ineffectual Expenses of delivery Delivery of wrong quantity Delivery by instalment .1. 4. 6. 9. 5.

. one who receives a bill of exchange or other negotiable instrument as conditional payment and the condition on which it was received has not been fulfilled by reason of the dishonor of the instrument. Who is an unpaid seller? (Section 45) 1. One who has not been paid or tendered the whole of the price or 2.

Where goods have been sold on credit and the term has expired. he may exercise right of lien on the remainder. (1) (2) (3) (4) Right of lien (Section 47): Entitled to retain possession until payment under the following cases: Where goods have been sold w/o any stipulation as to credit. Where the buyer becomes insolvent and the seller is in possession of the goods.s. When u. . has made part delivery of goods.

If it is with a middle man who is required deliver the goods to the buyer. Right of stoppage in transit (Section 50): When the buyer of goods becomes insolvent. . the u. then goods are said to be in transit. he may resume possession of the goods as long as they are in the course of transit and may retain them until payment. who has parted with the possession of the goods has the right of stopping them in transit. Transit does not mean that the goods should be in motion. but has not reached it to the buyer. That is.s.

Carrier/bailee wrongfully refuses to deliver to the buyer or his agent. . Essentials: (i) Seller must be unpaid wholly or partly. (ii) Buyer must have become insolvent. (iii) The goods must be in transit. Obtains delivery before arrival at appointed destination. When part delivery has been given and where it is decided to give up possession of the whole of the goods.  When does transit of goods come to an end? When buyer acquires possession or is deemed to acquire possession of the goods under following circumstances: Taking delivery from carrier or bailee.

Carrier acknowledges to buyer that he holds goods on his behalf. How is stoppage in transit effected? (i) By taking actual possession of the goods. or (ii) By giving notice of his claim to the carrier in whose possession the goods are. or where part delivery has been made.  When is right of stoppage in transit lost? Upon delivery of the goods. Carrier wrongfully refuses to deliver. to re-deliver to the seller or according to his directions. .

the u. Where the seller has expressly reserved his right of re-sale in case the buyer makes default. Where upon re-sale profit is made. . Where the seller gives notice to the buyer of his intention to resell and the buyer does not pay within a reasonable time after notice. is entitled to retain profits.s. Right of Re-Sale (Section 54): He can resell the goods under the following circumstances: Where goods are of perishable nature.

 Seller reserves the right of disposal over the goods (Section 25). Right of withholding delivery.  To recover interest from buyer where there is specific agreement to that effect.  Right to sue buyer personally for the price of the goods (Section 55).  Right to sue for damages for wrongfully neglecting or refusing to accept the goods (Section 56). .

seller may sue him for the price of the goods. the seller may sue for damages for non-acceptance.  Suit for Price (Section 55) If the buyer neglects or refuses to pay as per terms of contract. 56) Where buyer wrongfully neglects or refuses to accept and pay. . Suit for Damages (i) For non-acceptance: (Sec.

or he may treat the contract as rescinded and sue for damages for the breach. .(ii) For repudiation of contract ± Anticipatory breach: (Sec.60) If buyer repudiates contract before date of delivery. This remedy is in anticipation of the breach of contract popularly known as anticipatory breach of contract. seller may either treat it as subsisting and wait till delivery date.

.  Suit for breach of warranty (Section 59).  Suit for specific performance (Section 58). This is similar to seller claiming damages for repudiation or anticipatory breach of contract. Suit for damages for non-delivery of the goods (Section 57).  Suit for repudiation of the contract ± Anticipatory breach (Section 60).

usage of trade. (vii) Credit sales: interest awarded from expiry of the credit. (iii) If it is recoverable by law. etc. (v) Interest may be awarded u/s 80 of the NI Act. (ii) Interest may be awarded to the Seller if there is provision in the contract. .Suit for interest by way of damages and special damages (Section 61). The provisions of this section is summarized as:  (i) Interest shall be payable at such a rate as the Court may think fit. (viii) No interest can be recovered on damages. The seller or buyer shall have the right to recover interest or special damages. (vi) Interest prior to the suit may be awarded under circumstances like agreement at a fixed rate. (iv) Interest may be awarded to the Buyer if there is provision in the contract. interest shall be payable.

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