BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS LAW

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue for ____
A
Damages for non-delivery
B
Damages for non-acceptance
C
Specific performance
D
Compensation
Explanation: 

Detailed explanation-1: -If the seller wrongfully or neglectfully refuses to deliver the goods to the buyer, then the buyer can sue for non-delivery of the goods. According to Section 57 of the Sale of Goods Act, if the buyer faces losses due to the wrongful actions of the seller (non-delivery) he can sue for damages caused due to this.

Detailed explanation-2: –Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue the seller for damages for non-delivery.

Detailed explanation-3: -The buyer may, (a) set up the breach of warranty in extinction or diminution of the price payable by him, or (b) sue the seller for damages for breach of warranty. He may treat the contract as rescinded and sue the seller for damages. This is also known as ‘damages for anticipatory breach’.

Detailed explanation-4: -According to Section 59, if there is a breach of warranty on the part of the seller, then the buyer cannot reject the goods on the basis of that but he can sue the seller for reduction or extinction of the price.

Detailed explanation-5: -Return of Rejected Goods (Section 43) If a buyer, within his right, refuses to accept the delivery of goods, then he is not bound to return the rejected goods to the seller. He needs to inform the seller of his refusal though. This is true unless the parties agree to other terms in the contract.

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