Rights and Duties of Buyer and Seller
Introduction
In a contract of sale, both the buyer and the seller have specific rights and duties. These ensure fairness and proper performance of the contract. The Sale of Goods Act, 1930 lays down these rules to avoid disputes and protect both parties.
Meaning / Definition
A seller is a person who sells or agrees to sell goods.
A buyer is a person who buys or agrees to buy goods.
The contract creates mutual rights (legal claims) and duties (legal obligations) between both parties.
Modes or Types
Rights of the Seller
- Right to retain possession of goods until payment is made
- Right to deliver goods only when the buyer applies for delivery
- Right to deliver goods in instalments if agreed
- Right to stop delivery and take back goods if payment is not made
- Right to resell goods under certain conditions
- Right to sue the buyer for price if payment is not made on time
- Right to assume acceptance or rejection of goods by buyer
Duties of the Seller
- Duty to transfer ownership (property) of goods to the buyer
- Duty to deliver goods as per contract (quality, quantity, time)
- Duty to provide a good title (clear ownership)
- Duty to keep goods in deliverable condition (ready for use)
- Duty to follow implied conditions and warranties (basic promises under law)
- Duty to bear delivery expenses unless agreed otherwise
Rights of the Buyer
- Right to receive delivery as per contract
- Right to reject goods if they do not match quality or quantity
- Right to refuse instalment delivery if not agreed
- Right to examine goods before accepting them
- Right to recover price if goods are not delivered after payment
- Right to claim damages for breach of contract
- Right to claim damages for breach of condition or warranty
Duties of the Buyer
- Duty to accept delivery when seller is ready
- Duty to pay the price as per contract
- Duty to apply for delivery of goods
- Duty to accept instalments if agreed
- Duty to bear risk in certain cases (like distant delivery point)
- Duty to pay for goods even if wrongly refusing delivery
Distinction / Comparison
Seller vs Buyer (Rights and Duties)
| Basis | Seller | Buyer |
|---|---|---|
| Main Role | Transfers goods | Receives goods |
| Key Right | To receive price | To receive goods |
| Key Duty | Deliver goods as agreed | Pay price as agreed |
| Legal Remedy | Can sue for price | Can sue for damages |
| Control over Goods | Can retain till payment | Gets ownership after transfer |
Practical Example
A agrees to sell 100 bags of rice to B.
- A (seller) must deliver 100 bags of proper quality on time.
- B (buyer) must pay the agreed price and accept delivery.
- If A delivers only 80 bags, B can reject or claim damages.
- If B refuses to pay after delivery, A can sue for price.
Summary
- Seller and buyer have mutual rights and duties under the contract
- Seller must deliver goods and transfer ownership properly
- Buyer must accept goods and pay the price
- Both parties can claim damages if the other breaches the contract
- The law ensures fairness and smooth execution of sale transactions