RIGHTS AGAINST BUYER
Right in personam:
These rights of the unpaid seller against time buyer are called rights in personam and are in addition to the rights against the goods. The unpaid seller has the following rights against tree buyer personally:
a. suit for price,
b. suit for damages for non-acceptance of goods.
c. repudiation of contract before due date.
d. suit for interest.
(a) Suit for price-Section 55:
An unpaid seller car e suit against the buyer for the recovery of price as under:
(i) Where property has passed [Section 55(1)]:
Where the property in the goods has passed to the buyer, the seller can sue for the price where the goods are in the possession of the buyer or seller.
(ii) Where property has not passed [Section 55(2)]:
Where price is payable on a certain day irrespective of delivery, the seller may sue for the price, though the properly in the goods has not passes.
(b) Suit for damages for non-acceptance
Where the buyer wrongfully neglects or refuses to acceptance and pay for the goods.
General rule is that if the seller is ready and willing to the good to the buyer as per agreement and requests the take delivery but the buyer does not do so within reason the seller has the following remedies:
(a) Recover any loss due to buyer’s refusal or neglect to take delivery.
(b) Claim a reasonable charge for care and custody of goods.
(c) Repudiation of contract by buyer [Section 601:
Where the buyer repudiates the contract of sale before the due date of delivery, the seller may either:
(a) treat the contract as rescinded and sue for the damages for the breach, or
(b) treat the contract as subsisting and wait till the arrival of the date of delivery.
Remember that this rule is known as anticipatory breach of contract.
(d) Suit for interest [Section 61(2)(a)]:
When there is specific agreement between the seller and the buyer as respect charge of interest on the price of goods from the due date of payment, the seller may recover such interest. In the absence of a specific contract the setter can charge on the price interest from the date as he may notify to the buyer.
When interest is claimed through court, in the absence of a contract to that affect, the court may award interest at such rate as it thinks tit on the price of goods from the date of the tender of goods or from the date on which the price was payable, Girja Prasad v.
Sardar Labh Singh (1977).