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Business Environment and Law-Sale Of Goods Act 1930

The Price - Sale Of Goods Act 1930

   Posted On :  08.05.2018 04:59 am

“Price means the money consideration for a sale of goods”

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).
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