Question

Story: NSU organised a cricket tournament, but apart from the match itself, nothing was in order due to the fault of the food, carpet and trophy suppliers. NSU entered into a contract of sale of goods with Lexicon, a manufacturer of Trophy, to supply some Trophies for the NSU Cup Cricket Tournament. Lexicon agreed that they will supply trophies with their logo printed properly. However, due to their heavy workload, Lexicon appointed Pelicon, another renowned Company, to make the trophies within the deadline. Pelicon then asked NSU to visit the shop and examine the trophies before delivery, but NSU officials did not have any time to do so. While distributing them to the participants, one trophy just broke down on its own. It was quite embarrassing in front of the Chief Guest. After the distribution of the trophies, when the guests were having foods, it was found that the seller supplied Beef snacks, while NSU actually ordered chicken snacks, which was clearly stated in the receipt. Therefore, many guests having allergies to beef could not have them. Moreover, a few of the snacks contained small pieces of bones inside and one guest got injured while eating them. Besides, the carpeting which was procured by the NSU officials on sale or return basis to organise the closing ceremony was also stolen. NSU refused to take responsibility of such stealth and did not go for any legal action on the ground that they have not yet approved the sale and therefore the ownership has not yet been transferred to them.

question: Identify the responsibilities of sellers of trophy, food and carpeting and also NSU as the buyer of those items in accordance with the Contract Act of 1872 and Sale of Goods Act of 1930.

Answer 1

Responsibilities of sellers as per Contract Act of 1872 and Sale of Goods Act of 1930.

1. To make the arrangement for transfer of property in the goods to the buyer.

2. To ascertain and appropriate the goods to the contract of sale

3. To pass an absolute and effective title to the goods, to the buyer.

4. To deliver the goods in accordance with the terms of the contract

5. To ensure that the goods supplied conform to the implied / express conditions and warranties.

6. To put the goods in a deliverable state and to deliver the goods as and when applied for by the buyer

7. To deliver the goods within the time specified in the contract or within a reasonable time and a reasonable hour.

8. To bear all expenses of and incidental to making a delivery ( i.e. up to the stage of putting the goods into a deliverable sate

9. To deliver the goods in the agreed quantity.

10. To deliver the goods in installments only when so desired by the buyer.

11. To arrange for insurance of the goods while they are in transmission or custody of the carrier.

12. To arrange for insurance of the goods while they are in transmission or custody of the carrier.

Responsibility of Buyer -

1. To accept the delivery of goods, when the seller is willing to make the delivery as per the contract

2. To pay the price in exchange for possession of the goods

3. To apply for delivery of the goods.

4. To demand delivery of the goods at a reasonable hour

5. To accept delivery of the goods in installments and pay for them, in accordance with the contract.

6. To bear the risk of deterioration in the course of transit, when the goods are to be delivered at a place other than where they are sold

7. To inform the seller in case the buyer refuses to accept or rejects the goods

8. To take the delivery of the goods within a reasonable time after the seller tenders the delivery

9. To pay the price, where the property in the goods are passed to the buyer, in accordance with the terms of the contract

10. To pay damages for non-acceptance of goods (