Seller and Buyer

Elucidate the rights and duties of a seller and buyer.

Under the Indian Sale of Goods Act, 1930, the rights and duties of a seller and buyer are clearly defined to ensure fair and transparent transactions.

Rights and Duties of a Seller

Rights of a Seller

  1. Right to Lien (Section 47): The seller has the right to retain possession of the goods until the full payment is made.

  2. Right to Stoppage in Transit (Section 50): If the buyer becomes insolvent, the seller can stop the goods in transit and regain possession.

  3. Right to Resell (Section 54): The seller has the right to resell the goods under certain conditions, such as when the goods are perishable or when the seller has given notice to the buyer of their intention to resell.

  4. Right to Sue for Price (Section 55): The seller can sue the buyer for the price of the goods if the property in the goods has passed to the buyer.

Duties of a Seller

  1. Duty to Deliver Goods: The seller must deliver the goods as per the contract terms.

  2. Duty to Ensure Goods Conform to Contract: The goods delivered must conform to the description, quality, and quantity as specified in the contract.

  3. Duty to Transfer Title: The seller must ensure that the title of the goods is transferred to the buyer.

  4. Duty to Provide Possession: The seller must provide the buyer with the possession of the goods.

Rights and Duties of a Buyer

Rights of a Buyer

  1. Right to Receive Goods: The buyer has the right to receive the goods as per the contract terms.

  2. Right to Reject Goods: The buyer can reject the goods if they do not conform to the contract terms.

  3. Right to Examine Goods (Section 41): The buyer has the right to examine the goods before accepting them.

  4. Right to Sue for Damages: The buyer can sue the seller for damages if the seller breaches the contract.

Duties of a Buyer

  1. Duty to Accept Goods: The buyer must accept the goods if they conform to the contract terms.

  2. Duty to Pay for Goods: The buyer must pay the price of the goods as per the contract terms.

  3. Duty to Take Delivery: The buyer must take delivery of the goods within a reasonable time.

  4. Duty to Provide Necessary Information: The buyer must provide the seller with any necessary information required for the delivery of the goods.

Case Laws Illustrating Rights and Duties

  1. M/S. Jute and Gunny Brokers Ltd. v. Union of India (1961): This case highlighted the right of lien and stoppage in transit. The court held that the unpaid seller could exercise these rights if the buyer became insolvent.

  2. Lily White v. R. Munuswami (1966): This case emphasized the right of resale. The court held that the unpaid seller could resell the goods if the buyer failed to pay within a reasonable time.

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