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PERFORMANCE OF A CONTRACT OF SALE

Updated: Nov 9, 2020

By

Sandeep Harish B, III year of B.A.,LL.B.


Introduction

A contract should have a valid offer, acceptance and consideration. The contract will be fulfilled when the delivery of the goods was completed. The person who buys the goods is called the buyer. The person who delivered the goods is called a seller. Section 31 of the sale of goods act says that a reciprocal promise to perform simultaneously by the buyer and the seller.

The performance of the contract involves three acts, these are

1. Seller delivered the goods to the buyer

2. Buyer may accept the delivered goods

3. Buyer has paid the amount for delivered goods

Types of delivery of goods

Section 2(2) says that the term delivery means “a person voluntarily transfers the possession of goods from one person to another person” is called delivery.

1. Actual delivery

2. Symbolic delivery

3. Constructive delivery

Actual delivery

Section 33 says that the actual delivery means the physical transfer of the goods. The seller has handed over the goods to the buyer or agent and something is done which has the effect of putting the goods in the possession of the buyer or agent is known as the actual delivery.

Symbolic delivery

It means goods not transferred by physical, but it is transferred by symbolic. The goods were not in a position to be handed over.

For example: if the goods are the rice bag, the seller will hand over the godown to the buyer. This delivery is called a symbolic delivery.

Constructive delivery

The third-party has held possession of the goods the seller acknowledges to a buyer he holds possession of the goods on behalf of the buyer, and then the delivery is known as constructive delivery.

Some instances are in constructive delivery

1. A seller in possession of the goods has agreed to hold the behalf of the buyer

2. A buyer may be a possession of the goods already, and the seller may agree that the buyer may hold the goods as the owner

3. The third person in possession of the goods may acknowledge to the buyer that he holds them on his behalf.

Rules regarding the delivery of goods

Section 36(1) Place of delivery

The contract specifies a place at which the goods should be delivered, the goods have been delivered at the place. It is not specified, they may be delivered at the place at which they are at the time of sale. Regarding the agreement to sell, as per the agreement or at the place of manufacture.

Section 33 modes of delivery

The seller has transferred the goods to the buyer in three types they are actual, constructive and symbolic.

Section 36(4) time for delivery

The delivery time is not fixed by the contract; this delivery should be done at a reasonable time. Sometimes the delivery is a failure with reasonable times and gives rise to the breach of the contract.

Section 32 Delivery and payment

The delivery of the goods must be in the contract at the same time of delivery and pay the amount for the goods.

Section 34 part-delivery

The part of the goods was delivered, in the process of the delivery of the whole of the goods; it was the equal delivery of the whole. It means the goods have delivered wholly.

Section 35 Applications for delivery by the buyer

The buyer could apply for the delivery of goods. If he is not applying for the delivery, he has no right of action against the seller.

Section 36(5) cost of delivery

Each expense of make delivery and incidental expenses should be borne by the seller and each expense and incidental expenses obtaining the delivery should be borne by the buyer.

Section 36(3) third party in possession of goods

At the time of the sale, the goods were in the hand of three parties. There is no-delivery unless the third party acknowledges to the buyer that they hold them on behalf. But the third party consent is not important or necessary if the sale is by transfer of a document of the title of goods, through bill of lading or railway receipt etc.

Section 37 delivery of a wrongful quality

Delivery of the goods must be of the best quality in the terms of the contract. If it is not in terms of the contract the buyer has rejected the goods.

Section 38 instalment deliveries

Installations are not allowed the delivery of goods unless agreed by the parties. The buyer has the right to reject the goods if the person was not accepted for such a delivery.

Conclusion

In every contract of sale, rules are important in the delivery of goods and the acceptance of goods. Delivery of the goods is must and the buyer acceptance is must and buyer paying the amount for such a delivery is also a must. Above topics tell about the modes and rules of reading to the delivery of goods. These are important in the delivery of goods.