Performance of the Contract under the Sale of Goods Act, 1930

Introduction

In a sale of goods contract, the seller and buyer each have specific duties to ensure the contract is successfully performed. The Sale of Goods Act, of 1930 outlines these obligations in sections 31 to 40, covering everything from the seller’s duty to deliver to the buyer’s responsibility to accept and pay for the goods.

Duties of the Seller and Buyer (Section 31)

Seller’s Duty: The seller must deliver the goods to the buyer.

Buyer’s Duty: The buyer must accept and pay for the goods.

Payment and Delivery are Concurrent Conditions (Section 32)

Payment and delivery typically happen simultaneously unless the contract specifies otherwise. Both parties must be ready and willing to fulfil their respective obligations.

Types of Delivery

1. Actual Delivery: Physical handover of goods.
2. Symbolic Delivery: Transfer of control through symbols (e.g., keys).
3. Constructive Delivery: Change in the legal status of goods without physical transfer.

Delivery Rules

Delivery According to Contract: The seller must deliver the goods as specified in the contract. Time of Delivery: If not specified, payment and delivery happen concurrently.

Buyer’s Duty to Apply for Delivery (Section 35)

The buyer must request delivery. If the buyer fails to do so, the seller is not obligated to deliver.

Place and Expenses of Delivery

Place of Delivery: Determined by the contract. If not specified, it’s the location of the goods at the time of the sale. Expenses: The seller bears the cost of making the goods deliverable.

Effect of Part Delivery (Section 34)

Part delivery, if intended as part of the whole, transfers ownership of the entire shipment.

Delivery of Wrong Quantity or Description (Section 37)

If goods are delivered in the wrong quantity or do not match the description:

• Less Quantity: Buyer can reject or accept.
• More Quantity: Buyer can accept the contract amount, reject the excess, or reject all.
• Different Description: Buyer can reject or accept.

Instalment Deliveries (Section 38)

Delivery in instalments is only acceptable if agreed upon. Each instalment must meet the contract terms.

Delivery to Carrier or Wharfinger (Section 39)

Goods delivered to a carrier or wharfinger are considered delivered to the buyer unless the seller retains control.

Risk During Distant Delivery (Section 40)

If goods are delivered to a distant place, the risk during transit typically falls on the buyer unless the contract states otherwise.

Conclusion

Understanding the performance of the contract under the Sale of Goods Act, of 1930, ensures that both buyers and sellers know their rights and obligations. This clarity helps in smooth commercial transactions and minimizes disputes.

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FAQs on Performance of the Contract under the Sale of Goods Act, 1930

1. What are the primary duties of the seller and buyer under the Sale of Goods Act, of 1930?

Answer: The seller must deliver the goods to the buyer, and the buyer must accept and pay for them as per Section 31 of the Sale of Goods Act, 1930.

2. What happens if goods are delivered in a quantity different from what was agreed upon?

Answer: If the seller delivers the wrong quantity of goods, the buyer can choose to accept the correct amount and reject the rest, accept the whole delivery, or reject the entire delivery, as outlined in Section 37.

3. Who bears the risk if goods are damaged during delivery to a distant location?

Answer: Typically, the buyer bears the risk during transit unless the contract specifies otherwise, according to Section 40 of the Sale of Goods Act, 1930.

Also Read: Breach of the Contract under the Sale of Goods Act, 1930

Reference: vedantu.com