Discuss the rules relating to delivery of goods under the Sale of Goods Act.
List of rules relating to delivery of goods under Sale of Goods Act:
Mode of Delivery:
According to Section 33, delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorized to hold them on his behalf. Delivery of goods may be actual, symbolic or constructive.
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Payment and Delivery:
Concurrent Conditions: According to Section 32, unless otherwise agreed, delivery of the goods and the payment of.the price are concurrent conditions, that is to say, the seller shall be ready and willing to give possession of the goods to the buyer in. exchange of price, and the buyer shall be ready and willing to pay the price in exchange for the possession of the goods. Thus delivery of goods and the payment of the price must be according to the term of the contract.
Effect of Part Delivery:
According to Section 34, a delivery of the part of the goods, in progress of the delivery of the whole has the same effect, for the purpose of passing the property in such goods, as a delivery of the whole, but a delivery of the part of the goods, with an intention of severing it from the whole, does not operate as a delivery of the remainder.
Buyer to Apply for Delivery:
According to Section 35, apart from any express contract, the seller of goods is not bound to deliver them until the buyer applies for delivery. It is the duty of the buyer to demand delivery. If he does not apply of delivery, the buyer has no cause of action against the seller. The parties may, however, agree otherwise.
Place of Delivery:
According to Section 36(1), the place at which the delivery of the goods is to take place, may be specified in the contract and the seller must deliver the goods at that place during business hours on a working day. Apart from any such contract, goods sold are to be delivered at the place at which they are at the time of the sale, and goods agreed to be sold are to be delivered at the place at which are at the time of agreement to sell, or, if not in existence, at the place at which they are manufactured or produced.
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Section 40, says, “Where the seller has agreed to deliver the goods to the buyer at a place-. other than that where they were, when sold, the buyer must, in absence of agreement to the contrary,lake the risk of deterioration necessarily incidental to the course of transit.”
Time of Delivery:
According to Section 36(2), where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time. According to Section 36(4) says, “demand and tender of delivery must be at a reasonable hour. What is a reasonable hour is a question of fact.” If the seller fails to do so, he will be guilty of breach.
Goods in Possession of a Third Party:
According to Section 36(3), where the goods are in the possession of a third person, there is no delivery unless and until such third person acknowledges to the buyer that he holds the goods on his behalf. Once the third person does this that amounts to delivery. This rule is, however, subject to the transfer of documents of title. Where the goods have been sold by the issue or transfer of any document of title to goods.
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Expenses of Delivery:
According to Section 36(5), unless otherwise agreed, the expenses of and incidental to putting the goods into a deliverable state shall be borne by the seller, but all expenses of and incidental to obtaining of delivery are borne by the buyer.
Delivery of Wrong Quantity:
According to Section 37, the seller is under an obligation to deliver that quantity of goods contracted for. A defective delivery entitles the buyer to reject the goods. There can be the following three possibilities:
Short Delivery: According to Section 37(1), where the seller delivers to the buyer a quantity of goods less than he contracted to sell, the buyer may reject the goods. lithe buyer accepts them, he shall pay for them at the contract rate.
Excess Delivery: According to Section 37(2), where the seller delivers to the buyer a quantity of goods larger than he contracted to sell, the buyer may (i) accept the whole and pay for them at the contract rate or (ii) reject the whole or (iii) accept the goods he ordered and reject the rest. If the excess is negligible and the seller does not ask any payment for the excess, the buyer may not reject.
Mixed Delivery: According to Section 37(3), where the seller delivers to the buyer the goods mixed with the goods of a different description not included in the contract, the buyer may. (i) accept the goods which are in accordance with the contract and reject the rest or (ii) reject the whole.
Under Section 38, unless otherwise, agreed, the buyer of goods is bound to accept delivery thereof by installments. Where there is a contract for the sale of goods to be delivered by the stated installments which are to be separately paid for and the seller makes no delivery or defective delivery in respect of one or more installments, or the buyer neglects or refuses to take delivery of or pay for one or more installments.
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It is a question in each case, depending on the terms of the contract and the circumstances of the case, whether the breach of contract is a repudiation of the whole contract or whether it is sever-able breach giving rise to a claim for compensation, but not to a right to treat the whole contract as repudiated.
Delivery to Carrier or Wharfinger:
According to Section 39, where in pursuance of a contract of sale, goods are delivered to a carrier for the purpose of transmission to the buyer or to a wharfinger for safe custody, delivery of the goods to the buyer. In such a case, the seller must enter into a reasonable contract with the cagier or wharfinger on behalf of the buyer for the safe transmission of the goods.
Otherwise, if the goods are destroyed the buyer may decline to treat the delivery to the carrier or wharfinger as a delivery to himself or may hold the goods are sent by the .seller to the buyer by a route involving sea-transit, the seller must inform the buyer in time to get the goods insured otherwise the goods will be at seller’s risk during such sea-transit.
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Buyer’s right of examining the goods:
According to Section 41, where goods are delivered to a buyer, which he has not previously examined, he is not deemed to have accepted them, unless he has reasonable opportunity of examining them and ascertaining whether they conform to the contract. The provision will not be applicable if the parties agree otherwise.
Liability of the Buyer:
According to Section 44, when the seller is ready and willing to deliver the goods and requests the buyer to take delivery, and the buyer does not, within a reasonable time after such requests take delivery of the goods, he is liable to the seller for any loss occasioned by his neglect or refused to take delivery and also for a reasonable charge for the care and custody of the goods. Where the neglect or refusal of the buyer to take deliver), amounts to a repudiation of the contract, the seller may sue for the price or for damages.
According to Section 43, unless otherwise agreed, where goods are delivered to the buyer and he rejects them, he is not bound to return them to the seller. It is sufficient if he intimates to the seller that he has rejected the goods. If the seller refuses to take away the goods, the buyer becomes the bailee of the goods.