DUTIES OF SELLERS AND BUYERS OF GOODS (SECTION 31 SALES OF GOODS ACT)

Duties of buyers of goods

Specific duties of the buyers of goods are as mentioned :

Payment of price

After the delivery of the goods from the seller, the buyer might accept it or reject it. If the buyer accepts it then he needs to pay the price of goods. As, It is the terms of the contract.

Compensation

If it is wrongfully refused by the buyer to accept the delivery of goods, the seller must be compensated by him.

Delivery

The goods are delivered to the buyer at his request or application for delivery by the seller. If not, then the seller will not be bound to deliver the goods at all.

Liability of buyer

When a seller is ready for the delivery of his goods, the buyer needs to be ready for taking the delivery. If an accident occurs due to the negligence of the buyer, he will be responsible for compensating it to the seller. At the time of making an application, the buyer shall mention the time of delivery. If not , then the seller will not be responsible for the delivery of goods within a stipulated time.

Interest and special damages

The seller and the buyer might recover interest and damages by the contract law. If the contract law is recoverable only then it would be possible. The buyer can recover the paid money if the consideration of purchasing had failed. Therefore, we understand that the Duties of the sellers and buyers of the goods are important for maintaining a good business relationship between them.

In Ganesh Das Ishar Das v. Ram Nath, ILR 9 Lah 148; (AIR 1928 Lah 20 (2)) (M) it was stated that it was a converse case where it was held that in a suit by the buyer it is his duty under section 51 of the Contract Act to satisfy the court that he was ready and willing with the money or had the capacity to pay for the goods in suit or that he had at all events made proper and reasonable preparations and arrangements for securing the purchase money.

In. M P.V. Sundararama Iyer And ... vs V.V.C.R. Murugesa Mudaliar we have already found that it was the duty of the defendant to give" notice of resale and that not having been done the unpaid seller shall not be entitled to recover any damages whatever.

Duties of sellers of goods

The sellers perform 4 specific duties. The duties are as mentioned below :

Delivery

It is duty of the sellers to deliver the goods to the buyer. Then the buyers will accept or reject it. If the buyers accept it then he would pay for goods.  It is the law of contract of sale. And the, payment and delivery may occur at the same time. In that case, the seller shall be ready and willing to give the possession of goods to the buyer. However, the buyer also ready to make payment in exchange for possession of goods. Moreover, the sellers are bound to giving delivery according to the terms of the contract and rules of the sale of goods.

Risk of deterioration in the goods

The seller of goods agrees to deliver the goods at his own risk at a place. Besides, he takes all the risk of deterioration in the goods when they are in transit.

Non-delivery damages

 If the goods are not delivered by the seller, he is responsible for the damages of buyers. However, if the seller wrongfully neglects or refuses to deliver goods to the buyer, the buyer can sue the seller for damages for non-delivery.

Specific performance

The seller could breach the contract of delivery specific goods under certain circumstances. And if not, the contract needs to perform specifically.

In BABU RAM JAGDISH KUMAR AND CO. V. STATE OF PUNJAB AND OTHERS it was stated that in these appeals by special leave, we are called upon to pronounce on the validity of Section 31 of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as "the Act"), the notification dated January 15, 1968 issued there under by the Government of Punjab and the liability of the appellants to pay purchase tax under the Act in respect of the turnover relating to the purchases of paddy made by them during the relevant period.

In Dinkarrai Lalit Kumar v. Sukhdayal Rambilas  it was stated that when a buyer sues a seller for damages for non-delivery application for delivery on his part is a part of the cause of action and must be explicitly stated.