Sale of Goods Act Section 55 — Suit for price

CHAPTER VI SUITS FOR BREACH OF THE CONTRACT

Commercial / Corporate

Summary

Sub-section (1) covers the situation where ownership of the goods has already transferred to the buyer under the sale contract. If the buyer then wrongly fails or refuses to pay for the goods as the contract requires, the seller can file a lawsuit against the buyer to recover the price of those goods.

Sub-section (2) applies when the contract sets a specific date for payment, regardless of whether the goods have been delivered. If the buyer wrongly fails or refuses to pay on that fixed date, the seller can sue for the price even if ownership of the goods has not yet passed to the buyer and the goods have not been set aside for the contract.

Official Text

(1) Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may sue him for the price of the goods.

(2) Where under a contract of sale the price is payable on a day certain irrespective of delivery and the buyer wrongfully neglects or refuses to pay such pirce, the seller may sue him for the price although the property in the goods has not passed and the goods have not been appropriated to the contract.