Acceptance and Refusal of Delivery under Sale of Goods Act
Introduction
The law on sales does not end with delivery of goods. It also governs what happens after delivery—whether the buyer accepts or rejects the goods. Sections 42 to 44 of the Sale of Goods Act, 1930 explain when goods are considered accepted, how rejected goods are handled, and the consequences of refusing delivery.
Meaning / Definition
Acceptance of Goods (Section 42)
A buyer is said to accept goods when he shows, by words or actions, that he agrees to keep them.
Rejection of Goods
When goods do not match the contract, the buyer can refuse them. This is called rejection.
Refusal to Take Delivery (Section 44)
If the buyer does not take delivery even when the seller is ready, it is called refusal to take delivery.
Modes or Types
Acceptance of Goods
A buyer is deemed (legally treated) to have accepted goods in the following situations:
- When he informs the seller that he has accepted the goods
- When he does something with the goods that shows ownership (e.g., using or selling them)
- When he keeps the goods for an unreasonable time without rejecting them
Rejection of Goods
- The buyer can reject goods if they do not match the contract (quality, quantity, or description)
- Rejection must be communicated to the seller
- The buyer is not required to physically return the goods unless agreed
Refusal to Take Delivery
- If the seller is ready and asks the buyer to take delivery
- And the buyer fails to do so within a reasonable time
- Then the buyer is considered to have refused delivery
Distinction / Comparison
| Basis | Acceptance of Goods | Rejection of Goods | Refusal to Take Delivery |
|---|---|---|---|
| Meaning | Buyer agrees to keep goods | Buyer refuses defective goods | Buyer does not take delivery |
| Action required | Express or implied acceptance | Inform seller of rejection | Failure to act |
| Ownership effect | Confirms transfer of ownership | Ownership remains with seller | Ownership may remain with seller |
| Liability | Buyer must pay price | No obligation to pay | Buyer liable for loss and charges |
Practical Example
A orders a laptop from B.
- If A starts using the laptop → it is acceptance
- If A finds defects and informs B → it is rejection
- If A ignores delivery requests and does not collect the laptop → it is refusal to take delivery, and A must compensate B for storage or loss
Summary
- Acceptance occurs when the buyer agrees or behaves like the owner of goods
- Keeping goods without rejection for a long time amounts to acceptance
- Buyer can reject goods if they do not match the contract
- Buyer is not bound to return rejected goods but must inform the seller
- Refusal to take delivery makes the buyer liable for loss and storage costs
- These rules protect both buyer and seller after delivery of goods