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CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930

Sunrise Traders in Pune agreed to sell to Mehta & Co. a specific consignment of 200 bags of rice lying in its godown. Sunrise now refuses to deliver. Mehta sues and applies for specific performance. Under Section 58, what may the Court do?

The Court has discretion. In a suit for breach of a contract to deliver specific or ascertained goods, Section 58 lets it, if it thinks fit, direct specific performance on the plaintiff's application, without giving the seller the option of keeping the goods by paying damages.

  1. AIt must award only damages, as specific performance is never available for goods
  2. BIt may, if it thinks fit, direct that the contract be performed specifically without giving Sunrise the option of retaining the goods on payment of damagesCorrect
  3. CIt must order specific performance automatically on application
  4. DIt may order specific performance only if Sunrise consents

Explanation

Section 58 allows the Court, in a suit for breach of a contract to deliver specific or ascertained goods, to direct specific performance if it thinks fit on the plaintiff's application, without the defendant having the option to keep the goods by paying damages. It is discretionary, so 'must' is wrong, and defendant's consent is not required.

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