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Rights and Duties of Seller

The Sale of Goods Act, 1930 outlines the rights and duties of sellers in Pakistan, emphasizing the rights of unpaid sellers to secure payment and protect their interests. Sellers have rights against goods, such as lien and stoppage in transit, as well as rights against buyers, including the ability to sue for unpaid prices. Additionally, sellers have specific duties to deliver goods as per contract terms, ensuring fairness in commercial transactions.

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37 views5 pages

Rights and Duties of Seller

The Sale of Goods Act, 1930 outlines the rights and duties of sellers in Pakistan, emphasizing the rights of unpaid sellers to secure payment and protect their interests. Sellers have rights against goods, such as lien and stoppage in transit, as well as rights against buyers, including the ability to sue for unpaid prices. Additionally, sellers have specific duties to deliver goods as per contract terms, ensuring fairness in commercial transactions.

Uploaded by

hamzakhizer99
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Rights and Duties of Seller

Rights and Duties of Seller

Introduction

The Sale of Goods Act, 1930 governs contracts of sale in Pakistan. Under this Act, the
seller has certain rights to secure payment and protect his interest, while also bearing
specific duties towards the buyer to ensure fair performance of the contract. The
rights of the seller are particularly emphasized when he becomes an “unpaid seller”
(S. 45), i.e., when the price has not been paid or payment has been dishonored. At the
same time, duties of the seller ensure delivery of goods in accordance with contract
terms.

1. Rights of Seller

The rights of seller are divided into two categories:

A. Rights Against the Goods (Unpaid Seller’s Rights)

1.

Right of Lien (Ss. 47–49)

Seller can retain possession of goods until payment is made.


Available when:

Goods sold without credit,

Credit term expired, or

Buyer becomes insolvent.

Case: Valpy v. Gibson (1847) – lien is a possessory right that ends with
delivery.

2.

Right of Stoppage in Transit (Ss. 50–52)

If buyer becomes insolvent after goods have been dispatched, the seller
may stop them in transit and regain possession.

3.

Right of Resale (S. 54)

Seller can resell goods if buyer defaults.

If notice is given, buyer bears profit/loss.

Without notice, profit goes to seller.

B. Rights Against Buyer Personally

1.

Suit for Price (S. 55)


When ownership has passed and buyer fails to pay, seller can sue for price.

2.

Suit for Damages for Non-Acceptance (S. 56)

If buyer wrongfully refuses goods, seller may claim damages.

3.

Suit for Interest (S. 61)

Seller may recover interest on unpaid price.

2. Duties of Seller

The seller’s duties flow from the contract and the Sale of Goods Act provisions:

1.

Duty to Deliver Goods (S. 31, 32, 33)

Seller must deliver goods as agreed in the contract.

2.

Delivery of Goods as per Description (S. 15)


Goods must correspond with description given at time of sale.

3.

Delivery as per Sample (S. 17)

If sold by sample, bulk must correspond with sample.

4.

Passing of Good Title (S. 14(a))

Seller must transfer ownership free from defects in title.

5.

Delivery of Goods in Reasonable Time (S. 36(2))

If time not specified, delivery must be within reasonable time.

6.

Delivery of Right Quantity (S. 37)

Seller must deliver exact agreed quantity. Buyer may reject short or excess
delivery.

7.

Reasonable Care in Delivering (S. 32)

Seller must ensure goods are safely delivered to carrier or buyer.


Conclusion

The Sale of Goods Act, 1930 creates a balance between seller’s protection (through
rights like lien, stoppage, resale, and legal remedies) and buyer’s protection (through
seller’s duties like delivery, conformity with contract, and good title). Rights safeguard
the seller from financial loss, while duties ensure fairness in commercial
transactions. Thus, the Act ensures justice and stability in sale contracts.

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