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DELIVERY:- Rules as to delivery of goods

Updated: Jul 22, 2022

DELIVERY


Rules as to delivery of goods :

Delivery is defined in Sn. 2(2) of the Sale of goods act Detailed provisions are made in Sns. 33 to 44 regarding the mode of delivery and of its legal implications.


Agreement:

The delivery of the goods should be made according to the contract of sale by the parties. It amounts to delivery if the effect is to put the buyer or his agent in possession of the goods.

A sells his goods in his godown to B and hands over the key of the godown to B. This is symbolic delivery.


A sells his horse to B. A asks B to lend the horse for two days. There is delivery of the horse.


Part delivery :

Part delivery of goods is allowed as per the contract of sale. If the parties so agree, the delivery of a part,has the effect of the delivery of the whole of the goods and the property in the goods is transferred to the buyer. However, if the intention is not so, then it will not amount to the delivery of the remaining. On arrival, the master of a ship carrying wheat, stated that the cargo was for A, and allowed A to take part delivery. Held, this constituted the delivery of the whole, and A is entitled to the remaining cargo.


Rules as to delivery :

Location:

The contract of sale may provide for the mode delivery of goods. Whether the buyer may take possession of goods or the seller should send the goods to the buyer depends on the agreement. This may be expressed or implied.


In the absence of any contract, the goods sold are to be delivered from the place of location of the goods. In case of an agreement to sell, the goods are to be delivered from the place of location of goods at the time of agreement: if not so provided, the place of delivery is the place of manufacturer or production.


Time limit:

When the contract of sale is silent as to the time of delivery, the seller should send the goods within a reasonable time. What is reasonable depends on the facts or circumstances or .trade custom.


Third party :

When goods are with a third party, there is no delivery to the buyer, until the party acknowledges to the buyer that he is holding the goods in favour of the buyer.

d) Reasonable time :

Demand for delivery of goods or tender of delivery must be made at a reasonable hour i.e., hours of business or depending on the facts of the case, any time under agreement or usage.


Expenses :

It is the seller who must bear the expenses to put the goods in a deliverable state, unless agreed otherwise.


Wrong quantity delivery :

When there is short delivery of goods, the buyer may reject or accept. If he accepts, he must pay for the same.

If there is excess delivery of goods, the buyer may take delivery of so much as is to be appropriated to the contract of sale and pay for it, or, he may reject the whole. However, if he accepts the whole, he must pay for the same.


Instalment delivery:

The rule is that the buyer is not bound to accept the delivery of goods by instalments. This is subject to the agreement between the parties.


When the goods are to be delivered in instalments and paid for by the buyer, it is a question of the facts or circumstances to decide whether non-delivery or non payment amounts to the breach of the contract or not. The general rule is that such a breach will not give a right to treat the whole contract as repudiated.


A agrees to ship in one transaction 25 m.t. of pepper in November. He ships 20 m.t. in November and 5 m.t. in December. The buyer was entitled to reject the whole.



DELIVERY:- Rules as to delivery of goods








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