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Rights and Duties of Buyer and Seller in a Contract of Sale:
There are certain terms and conditions in a contract without which no contract can be executed. These terms and conditions may include time, place of delivery of goods, etc. Basically, these terms and conditions are the rights and duties of the parties(buyer and seller) to the contract which has to be fulfilled/ performed in its true spirit.
A person who sells his goods.
A person to whom the goods are sold. (OR)
A person who purchases the goods.
Rights of the Buyer:
1). Right to have delivery of goods:
It is the basic right of the buyer to take the delivery of goods from the seller after payment of consideration.
2). Right to Reject:
It is the right of the buyer to reject the goods if it is found that the seller has delivered him the goods of other quantity or quality or if the buyer notices any defects in the goods he may also refuse to take those defective goods.
3). Right to Cancel:
It is another right of the buyer to cancel the contract if the seller does not perform his part in the stipulated time or otherwise, if the seller commits any negligence as to the performance of a contract in that situation it is the right of the buyer to cancel the contract.
4). Right to claim damages:
If there is any defect in the Goods which may cause loss to the buyer or if due to the negligence of a seller. The buyer sustains a loss, in such circumstance or eventuality, it is the right of the buyer to be compensated or the buyer may claim damages.
5). Right to Examine:
It is the right of the buyer to examine the goods before their purchase and to duly satisfy himself as to be quality of goods.
6). Right to sue for performance:
If the seller refuses to obey the terms and conditions of the contract which gives irreparable loss to the buyer, the buyer has the right to knock or approach the competent court of law to compel the seller for specific performance.
7). Right to take insurance:
It is the duty of the seller to give notice to the buyer to be ensured the goods if the seller delivers in a good way whether by sea or by any other method/means due to which apprehension that the goods may be destroyed then it is the right of the buyer to ensure the goods before its delivery.
8). Right to sue for recovery of price:
It is the right of the buyer to file a suit for recovery of the price which he has already paid to the seller but even then, the seller refuses to perform his part.
9). Right to claim interest:
It is the right of the buyer to claim an interest in the situation if the delay is caused by the seller in the delivery of goods.
Related Post: Sale and Agreement to Sell
Duties of Buyer:
1). Duty to accept goods:
After the execution of the agreement if the seller delivers the goods to the buyer to accept the goods without any delay. If the buyer refuses to take the goods from the seller and the goods sustain any damage, the seller cannot be held responsible for the same.
2). Duty to pay the consideration:
It is the basic duty of the buyer to pay the agreed consideration to the seller on time.
3). Duty to pay damages:
It is the duty of the buyer to pay damages to the seller if due to the refusal of buyer receives goods from the seller and the seller sustains any injury or for maintenance if the seller incurs any cost over the goods.
4). Duty to perform agreement:
It is the duty of the buyer to perform his part/obligation in true spirit as agreed between buyer and seller and in case of his non-performance, the buyer can be held liable for any loss to the seller.
5). Duty to apply for goods:
It is another duty of the buyer to apply for delivery of goods to the seller. If it was agreed that the seller would only deliver the goods if the buyer applies for its delivery.
Related Post: Consideration in Law
Rights of Seller:
1). Right to have acceptance of goods:
It is the right of the seller that goods delivered by a seller under a contract of sale must be accepted by the buyer.
2). Right to claim loss:
If the buyer unlawfully refuses to accept the delivery of goods, the seller has a right to claim from the buyer the loss caused to him due to non-acceptance of the goods and also reasonable charges for the care and custody of the goods.
3). Right to receive the price of goods:
It is the right of the seller to receive the price of goods from the buyer as per the term of the contract.
4). Right to take legal action:
It is the right of a seller to take legal action against the buyer if the price is not paid to him.
5). Right to interest:
Seller is entitled to interest at a reasonable rate on the total unpaid price of goods sold, from the time it was due until it is actually paid to him.
Duties of Seller:
1). Duty to Deliver goods:
It is the duty of a seller to deliver the goods to the buyer according to the terms and conditions of the contract. If the seller refuses to deliver the goods to the buyer, he may sue the seller for damages for non-delivery.
2). Duty to put goods in the deliverable state:
Where it is necessary for the seller to do something with the goods in order to put them into a deliverable state, he must do such a thing to put the goods into a deliverable state within a stipulated or reasonable time.
3). Duty to refund the price:
Where the seller fails to deliver the goods to the buyer, he must pay back the price of the goods to the buyer which he had received in advance.
4). Duty to pay interest:
Where the seller has already received the price but fails to deliver the goods to the buyer, he must pay interest at a reasonable rate on the total received price, from the date of receiving such price until it is actually paid back to the buyer.
5). Duty to pay damages for breach of warranty:
Where there is a breach of warranty on the part of a seller, the seller is bound to pay the damages to the buyer for the breach of warranty.