Under the Sales of Goods Act, buyers have five main remedies when sellers breach the contract: (1) Suit for damages for non-delivery when buyer hasn't paid, (2) Suit for specific performance to compel delivery of goods, (3) Suit for damages for breach of warranty, (4) Suit for cancellation when condition is breached, and (5) Recovery of price with interest when buyer has paid but not received goods. The Act applies only to movable goods, not immovable property.
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Sales of Goods Act Lecture | Remedies of Buyer | Complete Legal Lecture GuideAdded:
Bismillah Rahmahim. Assalam Walekum students how are you? Our topic today, our lecture, is in reference to the Sales of Goods Act. This is its third lecture.
In the first lecture we read about sale and agreement to sell. The second lecture was on the rights of unpaid sellers. And today we are reading Remedies for Bear.
Until we understand some things, whenever we remember this topic, we will have to cram it. There is no benefit in that.
Now for a while, let us talk about the sale of goods. Tell me, from morning till evening, how many agreements to sell or agreements of sale, contracts of sale do we enter into or not?
You wake up in the morning, you go to a shop, pay money and buy something from there.
What is your responsibility to give him money, take the thing from him, get the bill made? This is a contract of sale. All day long we are buying something and selling something.
In this situation, we are making agreement to sell and contract of sale again and again.
Now what do we call the person who sells things for this purpose? Seller. And what do we call the thing that buys it?
We call it bear. Now to understand this topic, let us make one of you a seller right now and what should we make one of you a seller? Let's make someone a core bear. Yes sir Wajid, do you want to sell that thing of yours?
Sell something good like mobile, car etc. What do you want to sell? Is your mobile lying around?
Mobile.
Stand up mobile. Sell the mobile. Now Wajid is our seller.
And what does he want to sell? He wants to sell his mobile. Wajid, which mobile do you have?
Sir, how much do you want to sell Infinix 15 for? I want to sell it for Rs 15.
This guy worth Rs 15000 wants to sell his mobile. Would anyone among you like to buy this mobile? Yes sir. You have to buy it. What is your name?
Zan.
Zain. John wants to buy this mobile.
Not 15,000 or more or less?
Less. For how much?
7000.
Tell him 7,000 quickly, friend. Both of them deal with each other.
How much did you buy it for? For how much? Hurry up and finalise it so that we can reach 11000 later on.
11000 let's go to 13000 ₹1000 ₹1000 Now this agreement has been done for ₹1000 as the mobile has not been transferred yet, so what is this agreement to sell, now there are some conditions in it which we have to see, according to that now we particularly want to see that in this agreement of ours, when does the talk of remedies and remedies come?
What should happen to the contract that is going to be made between these two? That contract may be breached. And breach means breaking of the body.
How does the bond between these two break? In two or three ways.
Because we're not just looking at the seller right now. Who are we looking at? To beer.
So the buyer will file a case only when there is no mistake or fault on the part of the buyer.
Then he will get the rights, right? If there is any fault in this then we have already read about unpaid seller yesterday. In Unpaid Seller, we said that if Wajid does not get the money, gets a little, gets half, then what rights does Wajid have?
We read that yesterday. We will not talk about this today.
Today we say that our life is our bear, dear. What are its rights?
So its rights depend on whether it has made the payment yet or it has not made the payment? Didn't he get that thing? Got it wrong. So we will see what has happened to the buyer basically?
What does our buyer have as per the Act? Remedies. What is a remedy then?
Which is a local remedy. Grab him by the collar and give him the phone. But this is not present in the law.
Now at Edge Law, we want to see what remedies our buyer has. So the first remedy is suit for damages for non-delivery. Now see, non- delivery happens in two situations.
What are the two situations? There are two situations: one, the buyer has paid the money and then he does not get the delivery. And the second thing is that if he did not pay the money and did not get the delivery. If he has already paid the money then this one will file a case. Which one will sue? Then what will this one do?
Will recover the price. If he has paid the money then he will not ask for just the price. He will say, what can you give me along with the loss I have suffered? interest. So when will this trial take place? Suit for damages? Suit for damages for non-delivery will be filed if he has not yet paid the money to him. So a question arises that if he is not given the money then did he suffer any loss or not. Let me tell you one simple thing.
If we quote the last example we gave, it will be better. Do you know whether the bookings for the new vehicles that have recently arrived in Pakistan have been high or not?
Sir, currently 10,000 plus bookings have been done for the latest Bank 500.
And what is its delivery time?
8 to 9 months have passed. Now if the company gives you 8 months time, then what is the company's intention to give you the car in 8 months?
Management. Did people pay the full amount? Have n't paid the full amount yet. What did you do to him? The booking has been given accordingly for Rs 30 lakh and Rs 35 lakh. Now in this situation, if our buyer does not get the delivery then he cannot sue for the price.
Why can't I do it?
He did not even pay the price. So he will say that let me first return my money. Whatever you have given me, what more can you give me? Damages because I waited so long sir, I have suffered a loss because of you or sir, I can say this to Wajid because you did not give me the mobile.
I had to do this important work through mobile which I could not do because you did not give me this thing.
So what will you give me now to compensate for the loss?
What are damages? Damages are compensation. What happens?
Compensation. When someone files a case for compensation because you did not give me this thing on time. Therefore, now you should compensate me for the loss I suffered because of your not giving me this thing.
What was left then?
Now Zain told everyone that I called Tank 500 like it said Tank 500. The relationship which was on hold got completed.
And when the delivery did not happen on time, they refused to give the second delivery saying that the marriage was cancelled. So now whether he suffered a loss or not, it also became emotional and [sound of clearing throat] mental, that emotional mental is the same, right? Now what will he claim, damages, so what are damages, that when you suffer this kind of loss, then we claim compensation for that, so if our buyer does not get the delivery, now there are two, here on not getting the delivery, how many things can he ask for, number two he can say that yes, give me compensation, I do not want the delivery now, what loss can he cause me, because of you, what loss can he cause me, complete loss. And secondly, what will he claim? The other will say no, there is no harm.
Now I want that thing only. So what should a buyer ask for instead of money if he doesn't get delivery in return? Ask for that thing.
Ask for that thing. This is called suit for specific performance. That means what can Bayer do? Or ask for compensation in case of non-delivery and tell the delivery person that I do not want the item and I do not want the car. I don't want a mobile. The only loss I have suffered because of you is the thing which you did not give me. What can you complete for me?
Loss. A remedy. The second remedy is that the buyer says no, don't make up for the loss.
I want the thing we had agreed upon. I want that thing only.
So when a buyer files a case for the same specific thing about which they had made an agreement, then what is that case called in law? What does specific performance mean?
Perform that particular thing, fulfill your promise, meaning if you had said that you will give the car, then what will you do, you will give the car, like it is a simple thing, you know what has happened in the recent past, people are showing shock about that car. Now let's talk about Jaco.
How much did the Jaco J7 cost when it came out? What was there with 1 crore? It was less. And when a little market was created for it, then what happened to the 5 lakhs immediately? It's too much.
Now what happened in that is that sir, what happens to the J7 between Wajid and Zain? A contract is made.
But as soon as the amount increases to Rs 5 lakh, Wajid says, no sir, I am not ready to give the car. What should I do now?
What should you do with ₹5 lakh? Give more. Or take your money. Now from now on Zain says no, I don't want money. What do I want? I just need a car. So can he file a case after making this agreement? Absolutely. When Zain says that I don't want money, I just want the car. So which one will it be? This will be suit for specific performance. So these two remedies are for non-delivery. When the delivery buyer does not get it. So we said that the remedies of the buyer depend on whether the buyer has got the thing or not. It is possible that you may get something or you may get something wrong, that is a different matter.
Right now we are just discussing what a buyer can do if he does not get the item? Number one, he can suit for damages.
Number two, what can he do?
Specific performance. Now they write case law.
What is to be written in case law? If we read in this case law. Now you have an idea of a specific performance in mind, what do you do in it? You tell the party to deliver exactly what you promised. It was held that the court is allowed to pass a decree unconditional upon terms and conditions as to damages while passing the order on the application of the plaint which can be made at any time before the decree. It was said in it that Sir, along with the specific performance, if the court wants to give any further benefit or any damages for the delay, it can give that also. Now let's come to the next one, sir. Suit for damages for warranty.
Well, what is this suit for damage for warranty? And there will be another suit for breach of condition. These are two different claims. What do you mean? You come up with one thing. And do you know that nowadays, whatever things are there, especially when it comes to electronic items, what is given to you for all of them?
Warranty is given.
Our next topic is a very important topic. After that these points will become clear to you. There is a warranty and there is a condition. If the warranty and condition are not fulfilled then you can terminate that contract.
If the warranty is not fulfilled then you can claim damages. The contract cannot be terminated. What do you mean? It means that you are married son, you are not one of you people, he must be married, he must be married, his wife tells him to be happy and go and get a red coloured fridge, red red, what are you saying, red red, bring a red coloured fridge, which fridge do you want, red, if it is any other colour then I will not accept it at home at all, which red, this guy went and said in the market that I want a red coloured fridge. Which color do you want?
Red.
This is the condition. What is this? Condition.
The payment was made and they did not have any colour for the house in the market. He sent the black color.
When the black colour arrived, he said, yes, the fridge you had asked for is the same model. What is all this?
You will keep it exactly as it is.
He says no, I am happy, he says no, once it comes you will have to keep it.
Now the question is whether this person will really keep this wrong thing? So he said no, this colour or this specification is a condition.
If this is not fulfilled then this person is entitled to return that thing. Yes, the red coloured fridge has arrived. Which fridge has arrived?
Red.
Red color. But it is not cooling well.
Some other issue arose in it. Then what is this issue? Warranty: So under warranty, you will not return the item but what will they do to you? We will repair it and give it to you, we will change it and give it to you.
So this is the difference between warranty and condition. Therefore, if we do not have the conditions fulfilled, what can the buyer do if the conditions are not fulfilled?
Cancel the agreement.
Cancelled.
And if the warranty is not fulfilled then what can he ask for?
Damages.
Meaning, what was said was that if we do this for 5 years, sir, then if any of his things gets damaged then what will we do about it? It is the responsibility of the compressor.
So and so, you cannot say this on that, friend, you had said that nothing bad will happen.
What has happened to its compressor?
Bad. Now put your fridge back. No, it can never be returned because if there is any issue with the warranty then the item cannot be returned. Just what does it contain?
What do you get? Damages are found or your item is repaired.
For example, let me tell you. So these days I am having an issue with Higher. I went to that Haier outlet and told them that I want your natural gas burner. Which one do you want?
Natural.
Of natural gas. The burner they sent me was an LPG one. Now there is another LPG burner because if we take a normal stove then it works by changing the nozzle in it.
But these other stoves which cost Rs. 1 lakh to 1.5 lakh do not have such a function. That was a chola worth one and a half lakh rupees.
I took it from them. When I took it, what did I take from them?
Natural.
Natural. And what did he send me?
Sent the LPG guy. Now if I had opened it there and looked at it, then what was the point of taking it back? He was punctual. But when I saw it, I said, okay, I need the other two stoves. So I put one in the kitchen.
LPG and what do I put in one? The natural one. So which one did I put there? Installed the LPG one. Now that I have used it, that is, when I have accepted it, then I cannot take it to breach condition.
Now when I used it, it was not working properly. So what can I do now? I can claim its warranty.
If they do not repair the product as per the warranty then I can claim damages from them.
Because if I had returned it at that time then this thing would have come back.
Why? Because if this was the condition then would the stove be LPG or what?
Natural.
Natural. Now if the thing you asked for is natural and it is not working properly then what happened? This became a warranty issue.
So what can we claim under warranty?
Damages damage.
So how many Bayer remedies have come out? Three.
Which ones? First of all, both were on the same thing.
Who was it on? If there is non delivery. If it is non-delivery, then what can he take if he did not pay the money in non-delivery? Damages or what can he take? Can take delivery from him.
Specific performance can be taken.
And if that thing is delivered. If the item is delivered but it is a warranty issue then he will claim damages. And if the condition is not met then what will he do?
Then he can go to breach of contract and claim for cancellation. And if he pays the money and does not get the delivery. This was the first delivery in which you did not pay the full amount. Now if a buyer pays the full amount and still does not get the delivery, what will be his rights? First of all, what should I do with my money?
Back. Now you had given the money 3 years ago. Is there any difference between the money of 3 years ago and the money of today?
Sir. Difference.
So what will Bayer do then? He will say, give me the price and what else will you give me? I am interested.
Also give interest. These are five remedies. If any such incident happens with a buyer and you come back after buying something, then what have you become?
Bayer. And if any buyer has any of these issues, you can file a case.
Now keep reading here quickly.
Suit for damages is for warranty. According to section 59 where there is breach of warranty by the seller. The buyer is entitled to sue for damages. So you have to keep in mind that if there is breach of warranty then cancellation will not happen. There will be a suit for damages. If he has paid the price to the seller. But if the buyer has not yet paid the price, he may ask the seller for a reasonable reduction in price. So he can tell him that if you do not have that thing properly. So what do you make of its price? Reduce it a bit.
Where there is a breach of warranty by the seller or home where the buyer elects or is compelled to treat any breach of condition on the part of the seller as a breach of warranty. The buyer is not, by reason only of true breach of warranty, entitled to reject the goods. He says if there is a warranty issue then you cannot reject the goods.
What can I claim? Damages.
And if you have not given the money yet, then you can tell him that you do not have that thing, so what can you do with the money? Reduce it.
If you don't have that thing.
And when does the suit for cancellation take place?
Where there is breach of condition. Where there is breach of condition. So if you understand this, then what will you do if there is a breach of condition? You can cancel that agreement.
If there is breach of warranty then it cannot be cancelled. What can I take? You can only take damages from it. And recovery of price happens in that situation when you have made the payment and you do not get the delivery on time, then what can you get?
What can you get from him with the price and price? You can take interest.
Interest in what? Interest on the fact that you did not get the item despite paying the money on time.
And in this you cannot give any example of land and property.
The reason is that the Sales of Goods Act is only for movable goods.
It has nothing to do with your properties. That's not sales of good. That comes under the Transfer of Property Act.
What is the only property in Sales of Goods here?
Movable. So what example did we give? Have you ever given the example of mobile? It is movable. Ever given the example of a car because what is that? It is movable. In this we never put the example of the land of that thing in it. Why?
Because they can't keep it in there. The Cell Support Act does not deal with that at all. If you want to ask anything here, please ask.
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