Explain in detail, the rules as to delivery of goods.

 

Explain in detail, the rules as to delivery of goods.

 Meaning- 

The voluntary transfer of possession from one person to another is referred to as delivery of goods. A delivery process is the goal or end result of any such procedure that results in the items being delivered to the buyer. The products may be delivered even if they are transferred to someone other than the buyer who is authorized to hold the items on the buyer's behalf.

Definition-

On Delivery of goods by the seller (Section 31): “Delivery of goods means voluntary transfer of possession of goods from one person to another.”-U/S 2(2) of Sale of Goods Act,1930.

Rules Regarding Delivery of goods-

 1. Delivery of goods as agreed upon- 

        The seller and buyer agree on when the goods must be delivered, how payment will be made, and when payment will be made. The goods must be delivered in accordance with the terms of the contract, as agreed upon by both parties.

      2.  Mode of delivery- 

        U/S 33 The goods must be placed in the possession of the buyer or the buyer's authorized agent. Delivery can be: 

                   (a)  Actual delivery 

                 (b)  Symbolic Delivery 

                 (c)  Constructive Delivery

      3.  Delivery and Payment are Concurrent- 

                    

                        Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions, which means that the seller must be willing to give the buyer possession of the goods in exchange for the price, and the buyer must be willing to pay the price in exchange for possession of the goods.

      4. Effect of Part Delivery-

        Section 34 of the Sale of Goods Act establishes two basic rules in this respect, which are as follows:

                 (i)   Part Delivery in progress of whole delivery- When a part delivery is made in progress (in continuation) of a whole delivery, it is treated as a whole delivery, and the buyer is supposed to receive ownership of the entire quantity.

                

            For example- The seller agreed to sell the buyer 100 kgs of wheat. The buyer had the total 100 kgs weighed properly, but he only took away 20 kgs of it. Later, the entire balance of 80 kgs was destroyed due to fire. Held, the 20 kgs were delivered as part of the progress of the entire 100 kgs, so the delivery of part goods shall be treated as delivery of the entire 100 kgs. As a result, the buyer is liable for the loss of 80 kgs of wheat due to fire.

                (ii)  Part Delivery made to severe it from the whole- When a part delivery is made with the aim of separating it from the whole lot, it does not function as a delivery of the remaining amount part as well. It means that delivery of a severed (separated) part is not treated as delivery of the entire quantity, and thus ownership of the entire quantity is not transferred to the buyer when such part of the goods is delivered to him.

               

             For example- If the buyer only had 20 kgs weighed for taking delivery, then such part delivery was done on purpose to only take delivery of 20 kgs. As a result, only the property for 20 kgs will be transferred to the buyer. As a result, the buyer is not liable for the loss of goods in the amount of 80 kgs because the property in the amount of 80 kgs remained with the seller.

    

          5.  Buyer must apply for delivery- 

           

             As per Section 35 of the Sale of Goods Act, if there is no express agreement between the parties to the contrary, the seller of goods is not bound to deliver them until the buyer applies for delivery. As a result, the buyer has a legal duty to request delivery from the seller.

        It should be noted, however, that if the seller so wants, he may deliver the goods without the buyer's application. However, if the goods are to be obtained by the seller later.

        The seller is then required to inform the buyer that the goods have been obtained; however, the buyer is still required to apply for delivery. If the buyer fails to apply for delivery, the buyer has no right of appeal against the seller.    

       6.  Place of Delivery[Section 36(1)]-

            

                  According to Section 36(1) of the Sale of Goods Act, whether the buyer takes possession of the goods or the seller sends them is a question that depends on the terms of the contract and thus varies from case to case. Aside from any such contract, the rules for delivery location are as follows:

                        

      (i)  The goods sold must be delivered to the location where they were lying at the time of sale.

     (ii)  In the case of an 'agreement to sell,' the goods to be sold must be delivered to the location where              they were lying at the time of the agreement to sell.

    (iii)  If the goods are 'future goods,' meaning they do not exist at the time of the contract, they must               be delivered at the location where they are manufactured or produced.

       7.  Time of Delivery [Section 36(2)]- 

                     If the seller is required by the contract of sale to send the goods to the buyer but no time is specified, the seller must send the goods within a reasonable time and within reasonable hours.

            For example- In the first week of January, A agrees to sell and deliver the goods to B. The seller agreed to deliver the goods on January 4th, but only at 9 p.m. According to the claim, the goods were not delivered at a reasonable time.

      8.  Goods in a possession of third party-

                          If the goods are in the possession of a third party at the time of sale. The goods will not be delivered unless the third party confirms to the buyer that they are being held on his behalf. It is important to note that nothing in this section affects the operation of the issue or transfer of any title document to the goods.

            For example- A's goods were kept in X's warehouse. B purchased the goods from A. A informed X that the goods had been sold to B and that X would now store the goods on B's behalf. This fact was never mentioned by X to B. Later, due to a fire in the warehouse, the goods were destroyed. X held B accountable for the goods. B was held not liable because the goods were never delivered to B.

     9.  Expenses of Delivery-

            Only if the parties agree to some other terms in the contract, the seller will bear all expenses related to putting the goods in a deliverable state.

     10.  Delivery of wrong quantity- 

           Sale of Goods Act, 1930 has laid down the rules wherein the seller does not deliver the goods as  per the agreed quantity. The rules are as follows-

           

            (i) Delivery of Less Quantity-

                   If the seller delivers fewer goods than the contracted quantity, the buyer has the option to reject the delivery. If he accepts it, he must pay for them at the agreed-upon rate.

            

            (ii)  Delivery of Larger Quantity-

                If the seller delivers more goods than the contracted quantity, the buyer may accept the quantity specified in the contract and reject the remainder. The buyer has the option of rejecting the entire delivery. If he accepts the increased quantity, he must pay at the contract rate.

          

           (iii) Delivery of Mixed Quantity- If the seller delivers a mix of goods, some of which are mentioned in the contract and others which are not, the buyer may accept the goods that are mentioned in the contract and reject the rest. He may also refuse the entire shipment.

    11. Delivery through installment-

           

        (i)  If the contracting parties mutually agree that the delivery of goods will be made in instalments, the delivery should be made in the manner agreed upon.

       

        (ii)  However, if no agreement was made for delivery by instalments, the buyer is not obligated to accept the delivery of goods by instalments.

    

     12. Delivery to carrier or wharfinger-

1.       A "Wharf" is a place where goods are loaded and unloaded from ships, and a "Wharfinger" is the owner or keeper of a wharf. When the goods are delivered by the buyer's wharfinger, the rules of Section 39 apply.

        Rules-

        (i)  Delivery to carrier is delivery to buyer- 

                U/S 39(1), the seller is required to deliver the goods to a carrier, and delivery of goods to carrier is equivalent to delivery of goods to buyer. Therefore, once the goods are delivered to the carrier, ownership of the goods passes to the buyer, and if the goods suffer any loss, the buyer is liable.

        (ii)   Contract with carrier must- 

                U/S39(2), when the seller delivers the goods to the carrier, he must enter into a contract (for the safe transmission of goods to buyer) with the carrier on behalf of the buyer. A contract of this type is required to protect the seller from any loss that may occur to the goods while they are in the custody of the carrier.

        (iii)   Delivery through sea route- 

                U/S 39(3), if the seller sends the goods to the buyer via sea transit, the seller is required to notify the buyer that the goods require insurance. If the seller fails to do so and the goods suffer a loss, the seller must bear the loss.

     13.  Delivery of goods subject to examination- 

                U/S 41, If the buyer did not have the opportunity to inspect the goods, he is entitled to a reasonable opportunity to do so. The buyer has the right to inspect the goods delivered to him to ensure that they are in accordance with the contract. Unless otherwise specified in the contract, the seller is bound to respect the buyer's request for a reasonable opportunity to inspect the goods.

                    Perishable Goods- U/S 40 If the goods are to be delivered at a remote location, the buyer bears the risk of deterioration caused by the transit, even if the seller agrees to deliver at his own risk.

           14.  Acceptance completes on delivery- 

                    When a buyer is deemed to have accepted delivery of goods, the following conditions must be met:

                    (i)    He informs the seller that he has accepted the goods.    

                    (ii)  He does something to the goods that is inconsistent with the seller's ownership.

                    (iii) He keeps the goods for an unreasonable period of time without informing the seller that he has rejected them.

            15.  Buyer not bound to reject the goods- 

                    If a buyer exercises his right to refuse delivery of goods, he is not required to return the rejected goods to the seller. However, he must inform the seller of his refusal. Unless the parties agree to other terms in the contract, this is true.

            16.  Liability of buyer for rejecting or refusing delivery- 

                    If the seller is willing to deliver the goods and requests that the buyer take delivery within a reasonable time after receiving the request, but the buyer fails to do so within a reasonable time after receiving the request, the buyer is liable to the seller for any loss caused by his refusal to take delivery. He must also pay a reasonable fee for the care and custody of goods.

            Conclusion-

                These are the rules regarding delivery of goods.

    

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