Chapter 17 Performance of Contract of Sales

PERFORMANC
E OF
CONTRACT OF
SALE
PRESENTED BY : MARIYAM WAHEED
(LCM-4110)
INTRODUCTIO
N
The performance of contract of sale means the
performance of respective duties of the seller and
buyer as per the terms of the contract. The parties to
a contract should include the terms in their contract
regarding time, place of delivery, modes of
delivery, payment of price, etc. If the contract is
silent in this regard, the rules contained in the Sale
of Goods Act apply. (Sec.31)
01
DELIVERY OF
GOODS
Delivery means ‘a voluntary transfer of
possession from one person to another.’
(Sec. 2 (2)
02
MODES OF
DELIVERY
Delivery of goods may be made in any
of the following ways
Actual Delivery
When the goods are physically handed over by the
seller or his agent to the buyer or his agent, the
delivery is called actual delivery.
MODES OF
Symbolic Delivery
DELIVERY When a bulk of the goods is sold, it is not possible to give
actual delivery of the goods. In such a case, the control
over the goods is transferred by symbolic delivery.
Constructive Delivery
A constructive delivery occurs when change in the
possession of good stakes place without any change in the
actual custody of the goods.
03
RULES OF
DELIVERY
The rules regarding delivery of goods
are as follows
RULES OF DELIVERY
• Duty of Seller and Buyer:
It is duty of the Seller to deliver the goods and of the buyer to accept
and pay for the goods according to the terms of contract of sale.
(Sec.31)
• Delivery and Payment:

Unless otherwise agreed, the seller shall be ready to deliver the goods
to the buyer in exchange for the price and the buyer shall be ready to
pay the price in exchange for possession of goods simultaneously.
(Sec. 32)
RULES OF DELIVERY
• Mode of Delivery:
Delivery of goods sold may be made by any of the ways on which the
parties agree. It may be actual, symbolic or constructive. (Sec. 33)
• Demand of Delivery:
Apart from any express contract, the seller is not bound to deliver the
goods to the buyer unless the buyer applies for delivery. (Sec. 35)
RULES OF DELIVERY
• Effect of Part Delivery:
When the part delivery is made in progress of the whole delivery, it is
treated as delivery of the whole. The ownership in the whole of the
goods passes to the buyer. But when the part delivery is made with the
intention of separating ‘it from the whole, it is not treated as delivery
of the whole. The: ownership of the whole quantity does not transfer
to the buyer. (Sec. 34)
RULES OF DELIVERY
• Place of Delivery:
The goods must be delivered at the specified place stated in a contract.
If no place of delivery is mentioned in the contract, the following rules
will apply
• In case of sale, the goods are to be delivered at the place where
they are at the time of the sale.
• In case of agreement to sell, the goods are to be delivered at the
place where they are at the time of the agreement to sell.
• In the case of future goods, the goods are to be delivered at the
place where they are manufactured or produced.
RULES OF DELIVERY
• Time of Delivery:
When time for delivery of goods is specified in the contract, the goods
must be delivered accordingly. But when no time is fixed in the
contract, the goods must be delivered within a reasonable time
depending on the circumstances.
• Possession by Third Party:
When the goods at the time of sale are in the possession of a third
person, there is no delivery by the seller to the buyer unless and until
such third person acknowledges to the buyer that he holds the goods
on his behalf. (Sec.36(3))
RULES OF DELIVERY
• Expenses of Delivery:
Unless otherwise agreed, the expenses of putting the goods into
deliverable state shall be borne by the seller. [Sec. 36(5)]
• Wrong Delivery :
A seller is responsible to deliver the goods to the buyer in accordance
with the terms of the contract. In case of wrong delivery, the buyer can
reject the goods. It may be either short delivery, excess delivery or
mixed delivery. (Sec.37)
RULES OF DELIVERY
• Installment Deliveries :
Unless otherwise agreed, the buyer of goods is not bound to accept the
delivery of goods in installments. (Sec. 38)
• Delivery to Carrier:
When the seller delivers the goods to a carrier, whether named by the
buyer or not, for the purpose of transmission to the buyer is deemed to
be a delivery of the goods to the buyer. (Sec. 39)
RULES OF DELIVERY
• Examining the Goods :
When the seller delivers the goods to the buyer, he is bound to give a
reasonable opportunity to the buyer to examine the goods for the
Purpose of ascertaining whether they are in accordance with the
contract (Sec. 41)
RULES OF DELIVERY
• Delivery at Distant Place :
When the seller of goods agrees to deliver at his own risk at a place
other than that where they are when sold, the buyer shall nevertheless,
unless otherwise agreed, take any risk of deterioration in goods
necessarily incident to the course of transit. The risk for extraordinary
or unusual deterioration shall be borne by the seller.
RULES OF DELIVERY
• Acceptance of Delivery :
The buyer is deemed to have accepted the goods in the following
circumstances: (Sec. 42).
• When he informs the seller that he has accepted the goods.
• When he does any act, in relation to the goods, which shows that
he has accepted them.
• When, after the lapse of a reasonable time, he retains the goods
without intimating the seller that he has rejected them.
RULES OF DELIVERY
• Rejection of Goods :
When goods are delivered to the buyer and he refuses to accept them
having the right to do so, he is not bound to return them to the seller.
He should only inform the seller about his rejection. (Sec.43)
• Refusal to take Delivery :

When the seller is ready to deliver the goods and requests the buyer to
take delivery, and the buyer does not take delivery of goods within
reasonable time, the buyer is liable to the seller for any loss arising
due to the refusal. (Sec.44))
RIGHTS OF
BUYER
The following are the rights of a buyer
RIGHTS OF BUYER
• Right to take Delivery :
It is a right of the buyer to take delivery of the goods according to the
terms of the contract.
• Right to Reject :
If the seller sends to the buyer a larger or smaller quantity of goods
against the contract, the buyer may reject or accept the whole or
accept some and reject the rest. He can refuse to accept the goods in
installments.
RIGHTS OF BUYER
• Right to Notice of Insurance :
When goods are sent by the seller to the buyer via sea route, the buyer
has a right to be informed by the seller so that he may get the goods
insured.
• Right to Examine:
The buyer has a right to examine the goods which he has not
previously examined before he accepts them..
RIGHTS OF BUYER
• Right to Sue for Damages :
When the seller refuses to deliver the goods to the buyer, the buyer may
sue the seller for damages caused by non-delivery.
• Right to Sue for Price :

If the buyer has paid the price and the goods are not delivered, he can
recover the amount
RIGHTS OF BUYER
• Right to Sue for Performance:
The buyer may sue the seller for specific performance of the contract. If
the goods are specific, the court may order for the performance of the
contract..
• Right to Sue for Breach of Warranty:
When there is a breach of warranty by the seller, the buyer cannot reject the
goods. He can sue for damages only.
RIGHTS OF BUYER
• Right to Cancel the Contract:
When the seller cancels the contract before the date of delivery, the buyer
may cancel the contract or wait for the date of delivery.
• Right to Sue for Interest:

When there is a breach of contract on the part of seller, the buyer has aright
to claim interest on the amount.
DUTIES OF
BUYER
The following are the duties of a buyer
DUTIES OF BUYER
• Duty to Accept Goods:
It is the duty of the buyer to accept the goods and pay for them according
to the terms of the contract.
• Duty to Apply for Delivery:
It is the duty of the buyer to apply for delivery of the goods..
• Duty to Demand delivery:

It is the duty of the buyer to demand for the delivery of goods at a
reasonable time.
DUTIES OF BUYER
• Duty to take Risk of Deterioration :
When the seller agrees to deliver the goods at his own risk at a place other
than where they are when sold, the buyer shall take a risk of deterioration
in the goods.
• Duty to Pay for Damages :

When the buyer refuses to accept and pay for the goods, he will have to
compensate the seller for the damages for non-acceptance.
DUTIES OF BUYER
• Duty to take Delivery :
It is the duty of the buyer to take delivery of the goods within a reasonable
time.
• Duty to Pay Price :
When the ownership in goods passes to the buyer, it is the duty of the buyer
to pay the price according to the contract.
• Duty to Inform Seller :
It is the duty of the buyer to inform the seller if he refuses to accept the
goods.
THANK YOU!
ANY QUESTIONS?

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PERFORMANC

• Delivery and Payment:

• Refusal to take Delivery :

• Right to Sue for Price :

• Right to Sue for Interest:

• Duty to Demand delivery:

• Duty to Pay for Damages :

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