When related parties engaged in an agreement or contract, it is an obligation for both parties to follow the rules and regulations stated in the contract or agreement. However, things are not that perfect and in some cases, one party may revoke or breach the terms and conditions of the contract. In this case, another party can choose to sue and claim compensation for their damages. The Sales of Goods Act 1957 protects the rights of both parties in an agreement. There are several conditions of breach of contract which include;
Situation A (Price of goods)
When goods has passed to the buyer under a contract, if the buyer wrongfully neglects or refuses to pay for the goods according to the terms and conditions of the contract, the seller allow to sue the buyer for the price of the goods. So, the buyer has to pay the seller the amount said in the contract if the terms and conditions of contract are met.
Situation B (damages for non-acceptance)
The seller can to sue the buyer not only at the price of the goods, but damages for non-acceptance. According to Sales of Good Act 1957, if the buyer wrongfully neglects or refuses to accept and make payment to the goods, sellers have the right to sue buyers for the damages for non-acceptance.
Situation C (damages for non delivery)
On the buyer side, buyers have the rights to sue seller if the breach of contract is met. This means that if the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer stand a right to sue the seller about the damages for non-delivery.
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