SUITS FOR BREACH OF THE CONTRACTCentral

Section 55 of The Sale of Goods Act, 1930

(1)Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may sue him for the price of the goods.
(2)Where under a contract of sale the price is payable on a day certain irrespective of delivery and the buyer wrongfully neglects or refuses to pay such pirce, the seller may sue him for the price although the property in the goods has not passed and the goods have not been appropriated to the contract.

Summary

If ownership of the goods has already passed to the buyer, the seller can sue the buyer for the price if they wrongfully refuse to pay.
A seller can also sue for the price if the contract states the price must be paid on a specific day, even if the buyer does not own the goods yet.
This right to sue on a specific date applies even if the goods have not been delivered or set aside for the contract.

Practical examples

1Amit sells a custom table to Bina. Ownership of the table passed to Bina when it was finished, but she refuses to pay the 200 dollars. Amit can sue Bina for the full 200 dollars.

2Rahul agrees to buy a machinery part from a factory. The contract says he must pay on August 1st, regardless of when it is finished. On August 2nd, he has not paid. The factory can sue him for the price even though the part is not yet ready.

FAQ

1. When can a seller sue for the price under Section 55 of the Sale of Goods Act?

Under Section 55 of the Sale of Goods Act, 1930, a seller can sue if the property in the goods has passed to the buyer and they wrongfully neglect or refuse to pay.

2. Can a seller sue for the price before delivery under Section 55 of the Sale of Goods Act?

Yes, under Section 55 of the Sale of Goods Act, 1930, if the price is payable on a certain day irrespective of delivery, the seller can sue if the buyer does not pay by that day.

3. Does the property in goods need to pass for a suit under Section 55(2) of the Sale of Goods Act?

No, under Section 55 of the Sale of Goods Act, 1930, a suit for the price is allowed even if the property has not passed, provided the price was due on a specific day.

Test yourself

Q1.Under Section 55 of the Sale of Goods Act, 1930, what is the primary condition for suing for the price under subsection 1?

Q2.Under Section 55 of the Sale of Goods Act, 1930, what happens if the price is payable on a "day certain" regardless of delivery?

Q3.Comparing Section 54 and Section 55 of the Sale of Goods Act, 1930, which allows a seller to recover the full price rather than just damages?

Q4.Under Section 55 of the Sale of Goods Act, 1930, a suit for price is available when the buyer:

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