SUITS FOR BREACH OF THE CONTRACTCentral

Section 60 of The Sale of Goods Act, 1930

Where either party to a contract of sale repudiates the contract before the date of delivery, the other may either treat the contract as subsisting and wait till the date of delivery, or he may treat the contract as rescinded and sue for damages for the breach.

Summary

This section deals with cases where one party cancels the contract before the delivery date.
It covers "repudiation," which is when a party refuses to perform their side of the deal early.
The other party has two choices on how to respond.
They can wait until the actual delivery date and see if the party changes their mind.
Alternatively, they can cancel the contract immediately and sue for damages.
It protects the non-breaching party from being stuck in limbo when the other party backs out early.

Practical examples

1On May 1st, David agrees to buy 50 chairs from Maria to be delivered on June 1st. On May 15th, Maria tells David she won't be delivering them. Under Section 60 of the Sale of Goods Act, 1930, David can either wait until June 1st to sue or sue Maria immediately on May 15th.

2A shopkeeper agrees to pay a baker for 100 cakes on delivery next Tuesday. On Sunday, the shopkeeper says he won't pay. The baker can use Section 60 to treat the contract as ended right away and look for a new buyer while suing for any loss.

FAQ

1. What is repudiation in the Sale of Goods Act, 1930?

Repudiation occurs when one party to a contract of sale refuses to fulfill their obligations before the scheduled date of delivery, as described in Section 60 of the Sale of Goods Act, 1930.

2. Does Section 60 of the Sale of Goods Act, 1930 force me to sue immediately if the seller backs out early?

No, you have the option to wait until the delivery date or treat the contract as rescinded and sue immediately.

3. Can I still expect delivery if the other party repudiated early under the Sale of Goods Act, 1930?

Yes, under Section 60 of the Sale of Goods Act, 1930, you can treat the contract as "subsisting" and wait until the delivery date.

4. What happens if I treat the contract as rescinded under Section 60 of the Sale of Goods Act, 1930?

You can sue for damages for the breach of contract immediately without waiting for the original delivery date.

Test yourself

Q1.Under Section 60 of the Sale of Goods Act, 1930, if a seller cancels early, what can the buyer choose to do?

Q2.What is the legal term used in Section 60 of the Sale of Goods Act, 1930 for backing out of a deal early?

Q3.If a buyer waits until the delivery date after an early refusal under Section 60 of the Sale of Goods Act, 1930, how is the contract described?

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