by Under the Sale of Goods Act, 1930, a breach of contract occurs when either the buyer or seller fails to fulfill their obligations. Remedies are legal or equitable measures available to the aggrieved party to compensate for loss or enforce performance. The Act provides specific remedies depending on the nature of the breach, whether it involves non-delivery, late delivery, defective goods, or non-payment. The aggrieved party may claim damages, specific performance, or rescission of the contract. Additionally, the seller has special rights if unpaid. These remedies ensure fairness, protect commercial interests, and maintain trust in business transactions.
Remedies for Breach of Contract in Sale of Goods Act, 1930:
1. Suit for Price
If the buyer fails to pay for goods whose ownership has already passed, the seller can sue for the price. This remedy is available when goods have been delivered or the buyer has taken possession. The court can order the buyer to pay the contract price as a debt. It ensures that the seller recovers the agreed consideration even if the buyer refuses or delays payment. This remedy protects the seller’s financial interests and provides a straightforward way to enforce contractual obligations under the Act.
2. Suit for Damages for Non-Delivery
When the seller fails to deliver goods as promised, the buyer can claim damages. Damages aim to compensate the loss caused by the seller’s breach. The buyer may also recover expenses incurred in purchasing substitute goods. This remedy applies when goods are not delivered at all, delivered late, or do not conform to the contract. The court calculates damages based on actual loss and additional costs. This ensures that the buyer is fairly compensated for the inconvenience, financial loss, and missed opportunities resulting from the seller’s failure to perform contractual obligations.
3. Rejection of Goods
The buyer has the right to reject goods if they do not match the contract in quality, quantity, or description. Rejection is a remedy for breach of conditions, not warranties. The buyer may refuse to accept goods and cancel the contract. This prevents the seller from forcing defective or non-conforming goods on the buyer. Once goods are rejected, the buyer may also claim damages. Rejection ensures that the buyer is not compelled to pay for goods that fail to meet contractual promises. It protects the buyer’s interests and reinforces the importance of adhering to contract terms.
4. Suit for Specific Performance
In certain cases, the buyer may seek specific performance, asking the court to compel the seller to deliver the goods as agreed. This remedy is usually applied when goods are unique or cannot be easily replaced, such as art, rare items, or specially manufactured products. The court may direct the seller to fulfill the contract instead of merely paying damages. Specific performance ensures fairness when monetary compensation is inadequate. It is a discretionary remedy and not granted automatically. The purpose is to enforce the exact terms of the contract and protect the buyer’s expectations in cases where substitute goods are unavailable or insufficient.
5. Resale of Goods by Seller
If the buyer fails to pay or refuses to accept goods, the seller has the right to resell the goods. This allows the seller to recover losses from defaulting buyers. Before resale, the seller should notify the buyer to act in good faith. If the resale price is lower than the original, the seller may claim the difference as damages. Resale protects the seller from financial loss while maintaining contractual fairness. This remedy is particularly important in commercial transactions involving perishable goods or market-sensitive items, ensuring that the seller can recover value without unnecessary delay or loss.
6. Stoppage of Goods in Transit
When the buyer becomes insolvent, the unpaid seller can stop goods in transit before they reach the buyer. This prevents the buyer from obtaining possession of goods without paying. The seller may reclaim goods from the carrier or agent. This remedy protects the seller’s ownership and financial interest during shipment. Once goods are delivered, this right ends. Stoppage in transit is crucial in long-distance or large-scale sales, where risk of insolvency is significant. It allows the seller to control goods until payment or insolvency risk is resolved, ensuring that contractual rights are safeguarded during transportation.
