The performance of a contract of sale under the Sale of Goods Act, 1930 refers to the fulfillment of the obligations of both the seller and the buyer under the contract.
The Act provides that the seller must deliver the goods to the buyer and the buyer must accept and pay for the goods in accordance with the terms of the contract.
The performance of the contract is, therefore, dependent on the following:
- Delivery: The seller must deliver the goods to the buyer or any person authorized to receive them on behalf of the buyer, in accordance with the terms of the contract. The delivery may be actual or constructive. Actual delivery means the physical handing over of the goods to the buyer, whereas constructive delivery means the transfer of possession of the goods without physically handing them over.
- Payment: The buyer must pay the price of the goods to the seller in accordance with the terms of the contract. The payment may be made in cash or through other modes of payment agreed upon between the parties.
- Transfer of property: The property in the goods must be transferred from the seller to the buyer in accordance with the terms of the contract. The transfer of property may take place either at the time of the contract or at a later date as agreed upon between the parties.
- Transfer of title: The seller must have the right to sell the goods and the buyer must acquire a good title to the goods. If the seller does not have the right to sell the goods, the buyer may refuse to accept the goods and may also claim damages for any loss suffered by him.
- Quality of goods: The goods delivered must be of the quality and description as agreed upon between the parties. If the goods are not of the agreed quality or description, the buyer may reject the goods and may also claim damages for any loss suffered by him.
The Act also provides for the remedies available to the parties in case of non-performance of the contract. The remedies may include:
- Specific performance: The court may order the party in default to perform his obligations under the contract.
- Damages: The party suffering from the breach of contract may claim damages for any loss suffered by him.
- Rescission: The contract may be rescinded or cancelled by the party suffering from the breach of contract.
- Repudiation: The party suffering from the breach of contract may repudiate the contract and claim damages for any loss suffered by him.