Law of commerce
Discuss the remedies available to buyer and the remedies available to the seller when there is a defaults
in a contract to which the sale of goods acts applies.
Introduction
The general principles of the law of contract that relates to remedies such as damages and
restitution apply to the sales of goods act in an action either to the seller or the buyer.
The remedies available to the seller are;
1 Action for price
Under the contract of sale, and where the property in the goods or items sold has already passed
to the buyer and the buyer willfully refuses to honor his part of agreement by either not paying
the price agreed or defaults on a major condition of the contract, the seller may maintain institute
an action to recover the price of goods from the buyer (Hare, 2003).
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2 Action for damages for non-acceptance of goods
Where the buyer unlawfully or wrongfully refuses or neglects to accept goods delivered to him
after a lawful agreement, the seller may maintain an action for damages against the buyer for non
acceptance.
- Specific performance
In an action instituted for breach of a contract, the court may compel the defaulting party to
perform his part of the contract without the option of retaining the goods or payment of damages.
Buyer
Damages for non-delivery
Where the seller unlawfully or wrongfully refuses or neglects to deliver the goods after a lawful
agreement, then the buyer may maintain an action for damages against the seller for non delivery
(Hare, 2003).
Specific performance
In an action instituted for breach of a contract, the court may compel the defaulting party to
perform his part of the contract without the option of retaining the goods or payment of damages.
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References
Hare, J. C. (2003) The Law of Contracts. Clark, N.J.: Lawbook Exchange.
L’Estrange V Grautob (1934) 2 K.B. 688
