Preview

Rights of Unpaid Sellers Against the Goods

Good Essays
Open Document
Open Document
2549 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Rights of Unpaid Sellers Against the Goods
2.0 RIGHTS OF UNPAID SELLER AGAINST THE GOODS
The operation of the seller’s right over the goods in the Act is dependent upon the being ‘unpaid’. Section 45, the seller of goods is deemed to be an “unpaid seller” within the meaning of this Act-

a) when the whole of the price has not been paid or tendered; b) 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.

A seller for the purpose section 45 includes an agent of the seller, for example, an agent of the seller to whom the bill of lading is endorsed, a consignor, an agent who has himself paid, or an agent who is directly responsible for the price, define under section 45(2), the term “seller” includes any person who is in the position of a seller, as, for instance, an agent of the seller to whom the bill of lading has been indorsed, or a consignor or agent who has himself paid, or is directly responsible for, the price.

The normal remedy of an unpaid seller is to sue the buyer for the price or for damages for non-acceptance. According to section 55(1) Sale of Goods Act 1957, where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may sue him for the price of the goods. Section 55(2), where under a contract of sale the price is payable on a day certain irrespective of delivery and the buyer wrongfully neglects or refuses to pay such price, the seller may sue him for the price although the property in the goods has not passed and the goods have not been appropriated to the contract. Section 56, says that where the buyer wrongfully neglects or refuses to accept and pay for the goods the seller may sue him for damages for non-acceptance. The Sales of Goods Act gives him additional remedies in respect of

You May Also Find These Documents Helpful

  • Good Essays

    The Purchaser's exclusive remedy and the Seller's limit of liability for any and all losses or damages resulting from defective goods or from any other cause will be for the purchase price of the particular delivery with respect to which losses or damages are claimed, plus any transportation charges actually paid by the Purchaser.…

    • 912 Words
    • 4 Pages
    Good Essays
  • Good Essays

    PASS 2 UNIT 3 A

    • 840 Words
    • 3 Pages

    Sale of Goods act 1979 – All goods must meet the main three criteria. The goods must be as described, of satisfaction quality and fit for purpose. If the seller does not meet the criteria they are breaching the contract and the buyer will have to claim under the Sale of Good Act 1979…

    • 840 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    LP 5.1

    • 351 Words
    • 2 Pages

    8. What are the general obligations of the seller and buyer in a contract governed by Article 2?…

    • 351 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Business Law

    • 359 Words
    • 2 Pages

    No, the buyer is given the opportunity to inspect the goods. If problems arise over “in accordance with the contract” usage of trade, the course of dealing and performance and general circumstances must be given consideration to help determine the meaning of these words (UCC 2-302). If the goods or the delivery fails to conform to the contract, there is no duty on the part of the buyer to accept or pay.…

    • 359 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Section 12 of the Act implies a term that the seller of the goods has title to those goods i.e. he owns them and/or has the authority to sell them. Once transferred the term also pledges that the buyer will take those goods free from any encumbrances and is entitled to enjoy ‘quiet possession’ of them. Section 12 incorporates into the contract a term that the seller either has legal title to the property to be sold or that he will have title at the time when property is to pass. Two warranties are additionally implied that the buyer will enjoy quiet possession of the goods and that the goods will be free from any encumbrances (such as sellers ' lien or a third party having lien over the goods).…

    • 2063 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    law case study

    • 2210 Words
    • 7 Pages

    What are Buyer 's potential claims against Seller? What are Seller 's potential defences? Who is likely to prevail in the event this case goes to court?…

    • 2210 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    This is the person who is working for the house seller. Their job is to sell the house. Misunderstanding this role is a typical homebuyer mistake. To receive accurate value for a home, having a buyer agent makes the difference. These agents work for the buyer to help negotiate on behalf of the buyer. Too often this small, yet important detail is misunderstood. To help understand the importance of this role, some people have referenced it to a divorce. “If you were getting a divorce, you wouldn’t go to your spouse’s lawyer for advice, would you?” The same thinking can be applied…

    • 1036 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Absolute Essay

    • 940 Words
    • 4 Pages

    In the instance where an individual will act as they feel and not per universal absolute truth, then the individual may decide not to pay for the services rendered to them or merchandise that they procured because that is how the individual feels about the situation even if the renderer of service or seller may feel that they ought to be paid for their services or goods. They feelings in this case are only true to them and not the buyer as the buyer has a different feeling about the situation.…

    • 940 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Real Estate

    • 6801 Words
    • 28 Pages

    A. SELLER AGENCY: A SELLER'S AGENT has the duties, as defined by law, to represent the seller's interest in the sale of the property: this generally means a duty to seek a sale, lease, rent, or exchange at the price and terms stated in the brokerage agreement or a price and terms acceptable to the seller or landlord; present in a timely manner all offers and agreements to and from the seller or landlord; account for client funds; disclose all information relevant to the transaction as required by law to the client and maintain the client's confidentiality. These duties may be modified only by written agreement of the parties.…

    • 6801 Words
    • 28 Pages
    Powerful Essays
  • Good Essays

    * Sellers are protected in case of a buyer 's refusal to pay for goods or services…

    • 1099 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    COMMERCIAL LAW

    • 3966 Words
    • 16 Pages

    Subject to this Act, where goods are sold by a person who is not their owner, and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by his conduct precluded from denying the seller’s authority to sell.…

    • 3966 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Buyer Remedies: (Seller’s insolvency) If the goods are identified and the buyer has paid at least part of the contract price for the goods, then the buyer, by tendering the balance of the contract price, has, consistent with his special property right arising from identification, the right to claim the goods. BUYER’S RIGHT SUPERSEDES THAT OF SELLER’S OTHER CREDITORS.…

    • 764 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The Sale of Goods Act

    • 663 Words
    • 3 Pages

    Seller may sue for the price if the buyer wrongfully refuses to pay for the goods [s.51]…

    • 663 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The monumental changes in the last two centuries have rendered consumers especially vulnerable to unfair business conduct. In reaction to this the law has set out exactly what the rights of consumers are, and attempts to protect them through a number of ways.…

    • 655 Words
    • 2 Pages
    Good Essays
  • Better Essays

    In a contract of sale of goods, terms of implied that the seller has the right to sell the goods; that the purchaser will enjoy quiet possession of the goods, allowing them to use the goods without interference from a third party or the supplier; and that the goods are free and will remain so when the property is to pass from any charge or encumbrance, not disclosed to the buyer before the contract is made.…

    • 2287 Words
    • 10 Pages
    Better Essays

Related Topics