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

Under the Sale of Goods Act, 1930, unless the parties have agreed otherwise, delivery of the goods and payment of the price are:

Unless otherwise agreed, delivery and payment are concurrent conditions. The seller must be ready and willing to hand over possession in exchange for the price, and the buyer must be ready and willing to pay in exchange for possession of the goods.

  1. AConcurrent conditions, so the seller must be ready to give possession in exchange for the price and the buyer ready to pay in exchange for possessionCorrect
  2. BConditions where the buyer must always pay before the seller delivers
  3. CConditions where the seller must always deliver before the buyer pays
  4. DIndependent obligations, so neither party need be ready while the other performs

Explanation

Section 32 makes delivery and payment concurrent conditions unless otherwise agreed. Each party must be ready and willing to perform in exchange for the other's performance. Options that make one act precede the other or make them independent contradict this rule.

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