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

Mohan Traders sold 100 bags of cement to Suresh at Rs 400 per bag. The contract says that delivery and payment are to take place on 10 June. On that date Mohan is ready to deliver, but Suresh wrongfully refuses to take the goods and pay. Property in the goods has not passed to Suresh. What remedy is available to Mohan?

Mohan can sue Suresh for damages for non-acceptance. A suit for the price is available only when property has passed to the buyer or the price is payable on a fixed day regardless of delivery. Neither condition is met here, so damages are the proper remedy.

  1. AA suit for the price of the goods
  2. BA suit for damages for non-acceptanceCorrect
  3. CA suit for specific performance only
  4. DExercise of the right of lien after delivery

Explanation

Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue for damages for non-acceptance. A suit for the price lies only if the property has passed to the buyer, or if the price is payable on a day certain irrespective of delivery. Here the property has not passed and the price is not payable irrespective of delivery, so the suit for price is wrong.

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