Sale of Goods Act Section 36 — Rules as to delivery
CHAPTER IV PERFORMANCE OF THE CONTRACT
Commercial / Corporate
Summary
Sub-section (1) deals with who is responsible for taking possession of the goods. It says that whether the buyer must collect the goods or the seller must send them to the buyer depends on what the contract says, either explicitly or implicitly. If the contract is silent on this, then for goods already sold, delivery must happen at the place where the goods are at the time of the sale. For goods agreed to be sold in the future, delivery must happen at the place where the goods are at the time of the agreement, or if the goods do not exist yet, at the place where they are manufactured or produced.
Sub-section (2) covers the situation where the seller is required by the contract to send the goods to the buyer, but the contract does not specify a time for sending them. In that case, the seller must send the goods within a reasonable time.
Sub-section (3) addresses goods that are held by a third person at the time of sale. It states that there is no delivery from the seller to the buyer unless and until that third person acknowledges to the buyer that they are holding the goods on the buyer's behalf. However, this does not affect the use or transfer of any document of title to the goods, such as a bill of lading or warehouse receipt.
Sub-section (4) says that a demand for delivery or an offer to deliver the goods can be treated as ineffective if it is not made at a reasonable hour. Whether a particular hour is reasonable is a question of fact, meaning it depends on the specific circumstances of each case.
Sub-section (5) states that, unless the parties agree otherwise, the seller is responsible for the expenses of putting the goods into a deliverable state, along with any costs incidental to that process.
Official Text
(1) Whether it is for the buyer to take possession of the goods or for the seller to send them to the buyer is a question depending in each case on the contract, express or implied, between the parties. Apart from any such contract, goods sold are to be delivered at the place at which they are at the time of the sale, and goods agreed to be sold are to be delivered at the place at which they are at the time of the agreement to sell, or, if not then in existence, at the place at which they are manufactured or produced.
(2) Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time.
(3) Where the goods at the time of sale are in the possession of a third person, there is no delivery by seller to buyer unless and until such third person acknowledges to the buyer that he holds the goods on his behalf:
Provided that nothing in this section shall affect the operation of the issue or transfer of any document of title to goods.
(4) Demand or tender of delivery may be treated as ineffectual unless made at a reasonable hour. What is a reasonable hour is a question of fact.
(5) Unless otherwise agreed, the expenses of and incidental to putting the goods into a deliverable state shall be borne by the seller.