Part VI - Actions for Breach of Contract of Sale of Goods Flashcards
What are the remedies of the seller in case of breach of contract by the buyer?
There are four rules.
(a) Goods has passed to the buyer and he refuses to pay, seller may maintain an action for the price of the goods.
(b) Buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may maintain an action against the buyer for damages for nonacceptance.
(c) If labor or expense of material amount is necessary for the seller to fulfill his obligations under the contract of sale, and the buyer repudiates the contract or notifies the seller not to proceed, the buyer is liable for the labor performed or the expenses made before receiving notice of the buyer’s repudiation or countermand. The seller also has the right to damages.
(d) If the goods have not been delivered, and the buyer repudiates the contract or has manifested his inability to perform his obligations thereunder, the seller may totally rescind the contract.
What are the remedies of the buyer if the seller has committed a breach of the contract?
(a) Accept or keep the goods and set up against the seller, the breach of warranty by way of recoupment in diminution or extinction of the price.
(b) Accept or keep the goods and maintain an action against the seller for damages for the breach of warranty.
(c) Refuse to accept the goods, and maintain an action against the seller for damages for the breach of warranty.
(d) Rescind the contract of sale and refuse to receive the goods or if the goods have already been received, return them and recover the price paid.
