The Price
A. Meaning: “Price means the money
consideration for a sale of goods”
[Sec.2(10)].
B. How to fix the price?
1. By the contract: The price is a
contract of sale may be fixed by the contract between the parties (Sec69).
2. In an agreement: The price may be
left to be fixed in manner thereby agreed (sec.9). Whatever manner of fixing
the price has been agreed upon by the parties to the contract, that would be
recognized by law.
3. Valuation by third party: The
price may be left to be fixed by a third party.
4. By the course of dealings: Where
the price is neither expressed in the contract nor any manner of fixing the
price is agreed, the price would be determined by the course of dealings
between the parties.
5. Reasonable
price: What is a reasonable price is question of fact depending on the
circumstances of each case. Generally the market price on the date of supply is
taken to be a reasonable price.
C. Earnest
or deposit: The money so paid is called earnest or deposit. If buyers commit a breach of the
contract and seller files a suit for damages, the amount of damages shall be
reduced by the amount of earnest money forfeited.
D. Taxes
imposed after the contract of sale [sec.64 (A)]: Any
tax, is imposed or increased after
making of the contract of sale of such goods, then the seller can recover the
same from the buyer.
E. Payment
of price a concurrent condition with that of delivery (sec.32): The
seller shall be ready, and willing to give possession of the goods to the buyer in exchange for the price, and the buyer
shall be ready and willing to pay the price in exchange for possession of the
goods.”
Time As Essence Of Contract
A contract of sale of goods may stipulate the time for
the payment of the price and also the time for delivery of goods.
1. Regarding
payment: “unless a different intention appears from the terms of the contract,
stipulations as to time of payment are not deemed to be the essence of a
contract of sale.”2. Regarding
delivery: as regards stipulation relating to the time of delivery of goods. (Sec.11).