1. Distinguish between sale and agreement to sell.
2. what is mean by unpaid seller ? explain the rights of an unpaid seller. Unpaid seller – sec 45 lays down that a seller is unpaid in the following conditions , - where the seller does not receive whole or part of the price. ex : A sold a mobile to B for 40,000/- B took mobile and refused to pay the amount to A , Here A is a unpaid seller. - when a negotiable instrument or a bill of exchange has been received as conditional payment and it is not fulfilled because of dishonor. ex : Karthik sold Bluetooth speakers to ganesh for 10,000 , ganesh issued cheque to Karthik, he deposited the cheque into bank. But the cheque was dishonoured due to insufficient funds. Hence Karthik is an unpaid seller.
– where the seller was to get the price on expiry of credit period and the credit period has expired but price has still not been received by him. - but where the buyer tendered the price & seller refused to accept it there the seller shall not be called as unpaid seller. Rights of an unpaid seller : the sale of goods act has given 2 kinds of rights to an unpaid seller of goods namely, i) Against the goods ii) Against the buyer personally >>> The following chart shows the rights of unpaid seller. : Rights of an unpaid seller
i) Rights of an unpaid seller against goods ii) Rights of an unpaid seller against the buyer
a) rights of an unpaid seller where the property goods a) right to claim for damages for non acceptance is transferred to the buyer b) right to sue buyer for interest b) rights of an unpaid seller where the property goods c) right to sue buyer for price is not transferred to the buyer d) refusal of the contract before its due date
i) Rights of unpaid seller against the goods .
Rights of an unpaid seller against the goods is further classified into two categories they are : A . Rights of unpaid seller when the property in goods transferred to buyer : - right of lien - right of stoppage of goods in transit - right of resale - Right of lien : lien is the right to retain possession of goods until payment in respect of them is paid. The right of lien is linked with possession and not with title. The circumstances where lien can be exercised are as follows, - when the goods were sold without any credit period - when credit period is allowed - when the buyer becomes insolvent - right of stoppage of goods in transit : the second important right which is available to an unpaid seller is the right of stoppage of goods in transit. It means right to stop further transit of goods. It can be followed under the following circumstances. i) the seller must be unpaid ii) when the property in goods were transferred to buyer - right of resale : in addition to the right of lien and stoppage in transit, the unpaid seller has got the right of resale of goods, which are subjected to matter of contract, this right may be exercised by unpaid seller in the following conditions, i) when the goods are of perishable nature, no notice of resale is required when goods are perishable. ii) when the unpaid seller has exercised his right of lien or stoppage in transit, he can give notice to buyer of his intention to resell the goods. On receiving such notice, if the buyer does not pay within the reasonable time, the seller has a right to resell the goods or where the seller expressively reserve a right to resell in case of default buyer. – loss or profit on Re-sale : on resale the seller may either suffer loss by obtaining lesser amount on resale than the contracted price or may take profit by obtaining a higher amount on resale by contracted price. B . Rights of unpaid seller when property in goods is not transferred to buyer : Right of withholding delivery : where the property in goods has not passed to the buyer an unpaid seller can exercise a right of withholding delivery in addition to his other remedies as a mix of right of lien and stoppage of goods in transit. ii) Rights of unpaid seller against the buyer . 1. Right to sue buyer for price a) where property has passed to the buyer – under a contract of sale, if the property In the goods has passed to the buyer & the buyer wrongfully neglects or refuses to pay for the goods the seller may sue him for the price of goods. b) where property has not passed to the buyer – under a contract of sale, the price is payable on a certain day irrespective of delivery and the buyer wrongfully neglects or refuses to pay such price, the seller may sue him for the price. 2. Right to claim for damages for non acceptance – where the buyer wrongfully neglects or refuses to accept and pay for the goods the seller may sue him for non acceptance. The measure of damages is determined by the rules in sec.73 and 74 of the Indian contract act. – where there is demand available in the market for the goods the measure of damages is the difference between market price and contract price at the date of breach. – where there is no demand the measure of damages is estimated in the ordinary course from the breach of contract. 3. Repudiation of contract before due date – where the buyer repudiates the contract before the date of delivery the seller may either, treat the contract as substituting and wait till the date of delivery or he may treat the contract as rescinded and sue for damages for breach. This is known as the Rule of anticipatory breach of contract. 4. Right to sue buyer for interest – the seller will get right to sue the buyer for payment of interest if any agreement is signed by the buyer and seller regarding the payment of interest on the price of goods. if however there is no specific agreement to this effect, the seller may charge interest on the price when it becomes due from such day as he way notify buyer.
3. Who is consumer ? what are the rights of a consumer ?
consumer : According to section 2(1) (d) of the consumer protection act 1986, consumer defined as any person who, - Buys any goods for consideration which has been paid or promised or partly promised under any system of deferred payment but does not includes any person who obtains such goods for resale or any other commercial purpose. – Hires or avails any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and also includes any beneficiary of such services. Thus, in simple words consumer refers to any person who actually consumes the goods or services. Any person who purchases goods or services for resale would not be considered as a consumer, as per the consumer definition under section 2(1)(d) of the consumer protection act 1986. Rights of consumer : The present day consumer is provided with the following rights . 1.Right to safety – it is the most imp & basic right of any consumer who purchase any product for consumption. Every consumer has the right to be provided with products which are safe to consume. He needs to protected against the products which is unsafe & hazardous to health and life of consumer. 2. Right to choose – every consumer has full right to choose product which he desires to consume. He needs to be provided access to various types, sizes, price, quality, quantity of goods to choose from. 3. Right to information – the consumer has right to be provided full information about the product he desires to consume, providing information also ensures that he is protected against fraudulent & misleading labelling of product. 4. Right to consumer education – al consumers have the right to consumer education the govt dep of consumer affairs India is entrusted the responsibility of providing consumer education to general public . it ensures that the consumer is made aware about his rights, duties, consumer laws, grievance redressal system etc…. 5. Right to redress – the consumer has the right to redressal against fake or low quality goods or unsatisfactory service. 6. Right to basic needs – to survive and live like a dignified human being, consumer have the right to fulfill their basic needs. He needs to be provided all the basically needed goods and services. 7. Right to boycott – the consumer has the right to boycott the purchase and consumption of any good or service if there is a conflict of interest. 8. Right to safe environment – every consumer has the right to be provided safe and healthy environment to live and work.
