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CA Foundation · Business Laws · The Sale of Goods Act, 1930

Anita sold a machine to Binoy for Rs 5,00,000, payable on delivery on 1 June. Property in the machine has passed to Binoy and Anita has not delivered it. Binoy, though able, wrongfully refuses to pay on 1 June. Which remedy is available to Anita?

Anita may sue Binoy for the price of Rs 5,00,000. Property in the machine has already passed to Binoy, and he wrongfully refuses to pay as per the contract, which entitles the seller to sue for the price rather than merely for damages.

  1. ASuit for the price, since property has passed to the buyerCorrect
  2. BSuit for damages only, as the machine is undelivered
  3. COnly the right to resell the machine without notice
  4. DRecovery of the machine through a suit for specific delivery

Explanation

Where property has passed to the buyer and he wrongfully neglects or refuses to pay according to the contract, the seller may sue him for the price. Here the price was payable on delivery and property has passed, so the suit for the price is available. A damages-only remedy is wrong since the price suit is open when property has passed.

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