Rights of Buyer Against Seller
Introduction
When a seller fails to perform his obligations, the buyer is not left without remedy. The Sale of Goods Act, 1930 provides various rights to the buyer to protect him from loss. These rights allow the buyer to claim money, demand performance, or seek compensation.
Meaning / Definition
Rights against the seller are the legal remedies available to the buyer when the seller:
- Fails to deliver goods, or
- Delivers defective goods, or
- Refuses to perform the contract
These rights ensure fairness and protect the buyer’s financial interests.
Modes or Types
Damages for Non-Delivery
If the seller refuses or fails to deliver the goods:
- Buyer can sue for compensation (Section 57)
- If any advance is paid, it can be recovered
Measure of damages:
- Difference between contract price and market price on the date of breach
Buyer must try to reduce loss by purchasing similar goods from the market.
Suit for Specific Performance
When goods are specific or unique:
- Buyer can ask the court to compel the seller to deliver the goods (Section 58)
This remedy is used when:
- Goods cannot be easily replaced
- Money compensation is not sufficient
The court decides based on fairness under the Specific Relief Act, 1963.
Suit for Breach of Warranty
If there is a breach of warranty:
- Buyer cannot reject goods only for this reason
- Buyer can claim damages (Section 59)
Damages include:
- Direct loss arising from the breach
Buyer may also adjust the loss against the price payable.
Suit for Anticipatory Breach
If the seller refuses to perform before the due date:
- Buyer can treat the contract as cancelled and sue immediately (Section 60), or
- Wait until the delivery date
Damages are calculated:
- Based on price at breach (if immediate action taken), or
- Based on price at delivery date (if waiting)
Important Case Law
- Behnke v Bede Shipping Co. Ltd. – Specific performance allowed for a unique ship
- Mason v Burningham – Buyer can recover repair costs due to breach of warranty
Distinction / Comparison
Damages vs Specific Performance
| Basis | Damages | Specific Performance |
|---|---|---|
| Nature | Money compensation | Actual delivery of goods |
| Use | When goods are replaceable | When goods are unique |
| Court Role | Calculates loss | Orders performance |
Practical Example
A orders a rare antique car from B. B refuses to deliver:
- A can claim damages if similar cars are available
- If the car is unique, A can ask the court to force B to deliver it
Summary
- Buyer has rights when seller breaches the contract
- He can claim damages for non-delivery
- He can demand specific performance for unique goods
- Breach of warranty allows claim for compensation
- Anticipatory breach allows early legal action
- Buyer must reduce loss where possible
- Law ensures fair balance between buyer and seller