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A Study Of Rules As To Delivery Under The Sale Of Goods Act, 1930

The Sales of Goods Act 1930 is an essential component of legislation governing contracts that aims to protect the interests of both buyers and sellers by providing a legal framework for sales transactions. The Sale of products Act serves as the foundation of business transactions by establishing crucial rules for just and equal exchanges of goods. Both buyers and sellers are subjected to rights and duties under this act which regulate their interactions in business dealings.[i]

Chapter IV of the Sale of Goods Act, 1930 describes about the 'Performance of the Contract' which consists of sections from 31 to 44. It mainly deals with delivery of goods i.e. rules of delivery, effect of part delivery, instalment deliveries etc. The rule as to delivery in contracts of sale governs the transfer of goods from seller to buyer. By providing an organized framework for the exchange of goods, this regulation safeguards the interests of all parties involved in the transaction and upholds clarity and transparency all the way through.

The purpose of this research is to thoroughly examine and clarify the rules controlling delivery as stated in this act. The study aims to clarify the rights, obligations, and liabilities of buyers and sellers in sales transactions by carefully examining and interpreting these rules. This will help individuals in business transactions make informed decisions and advance their understanding of the law.

Rules as to delivery
Protecting the interests of both buyers and sellers in sales transactions and regulating contracts are key functions of the Sale of Goods Act, 1930. Chapter IV is devoted to delivery regulations, which guarantee equitable trades. With the goal of assisting people in understanding their rights and responsibilities in commercial transactions and eventually promoting informed decision-making, this research seeks to examine and elucidate these regulations.

Part delivery on the passing of property: This clause specifies that if only a portion of the items are delivered, the buyer becomes the owner of the goods. According to Section 34 of the law, a part delivery of goods made while the entire delivery is underway has the same consequences as the full delivery. But if the piece is taken apart from the whole, it no longer functions as the delivery of the remaining component.

In the case of Hammond v. Anderson (1830)[ii], it was decided that if the buyer weighs all of the items with the intention of taking delivery but only removes a portion of them, the part of the delivery would be considered the whole delivery.

Duty of the buyer to apply for delivery: As per the Section 35, the buyer is required to request the products' delivery before the seller can be held responsible for their delivery. Both the ready and future commodities require this kind of buyer delivery application. Additionally, any express agreement between the parties will govern the buyer's demand delivery.

In case of Juggernath Khan v. Maclachlan (1881)[iii], it was decided that the buyer was entitled to specify the date of delivery under the terms of the agreement, and the seller was liable for breach of contract if the seller did not deliver as specified in the notice.

There are numerous regulations governing the sale of commodities that require both buyers and sellers to fulfill their obligations and adhere to the terms of the agreement. A significant portion of the sale is the delivery. The rules for delivery are discussed in Section 36[iv] in the following terms:

  • Place of Delivery [Section 36(1)]: The parties to the agreement are at liberty to determine the location of the goods' delivery and to interpret the agreement accordingly. The site of delivery is where the products are when the transaction is made, unless otherwise specified in the contract, such as in a sale. The place where the items are at the time of the agreement to sell is the place of delivery in a sales agreement. The place of delivery is the location where future items that have not yet been manufactured or produced are made or delivered.

    The buyer was free to select a delivery site in Bengal in Grenon v. Lachmi Narain (1896)[v], but the 'to be mentioned hereafter' clause only required sufficient notice. The buyer may be reimbursed for the costs of shipping the items to the designated delivery point in the event that the delivery destination is different.
  • Time of Delivery [Section 36(2)]: It is the seller's responsibility to deliver the items within a reasonable amount of time when there is a sale but no delivery schedule has been set. However, the seller is still liable if this account is not fulfilled, even if it is because of a government order or military intervention.

    In Nagnath Kaulwar & Sons v. Govindram Shyamasunder (2004)[vi], a contract for rice supply was cancelled due to unresolved delivery times. The buyer claimed damages under section 36, as the seller failed to dispatch goods within reasonable time, resulting in the cancellation of the contract.
  • Goods in the third party's possession [Section 36 (3)]: Occasionally, a third party may own the items at the time of sale. In these situations, the items are only considered delivered when the person receiving them acknowledges to the buyer that he is acting on the buyer's behalf.
  • According to Section 36(4), demands or tenders of delivery must be made at a reasonable hour in order to be valid. The particulars of the transaction will determine what is reasonable, taking into account things like the goods' type, the location, and standard business procedures.
  • Expenses of delivery: In accordance with Section 36(5), unless otherwise agreed, the seller shall bear the costs of putting the goods in a deliverable state. This means that if the goods are not in a deliverable state at the time of the contract, the buyer is obligated by the terms of the agreement to accept delivery of the goods, and the seller shall bear the costs of doing so. Should the buyer have covered these costs, they may be subsequently recouped from the vendor.

Delivery of goods in wrong quantity or of different description: The seller is required to deliver the items in accordance with the terms of the agreement. This includes having to provide the goods in the required quantity, with the same quality, and according to the contract's description. When performance is not in accordance with the contract, Section 37 addresses certain situations.

A contract called for 16,000 kg of rice to be supplied, but only 522 kg were provided in the case of Barium Chemicals Ltd. v. Andhra Pradesh Mining Corporation Ltd (1980) [vii]. The buyer could not refuse to accept the delivery of the goods because of the application of the "de minimis" rule.

Delivery in installments: In accordance with Section 38(1), the buyer is not required to accept delivery in installments and it is anticipated that the seller will deliver the items in a single lot. However, if both parties consent, the products may be delivered in installments. Additionally, in accordance with Section 38(2), we must consider the facts of the case as well as the provisions of the contract before determining whether the breach constitutes a violation of the entire agreement or only a portion of it.

Delivery to Carrier: In accordance with Section 39, the buyer assumes all risk of loss to the goods if a seller gives them to a carrier or wharfinger without reserving the right of disposal. This can be countered, though, by reserving the right of disposal and obtaining the title document in the name of the seller or another party. The buyer may hold the seller accountable if the goods are lost or damaged, and the seller is required to enter into a reasonable contract with the carrier or wharfinger.

Therefore, a number of delivery-related regulations are covered in this act, such as the impact of delivery in part on property transfer, the buyer's obligation to request delivery, and the exact location, timing, and cost of delivery. In order to ensure fairness and clarity in sales transactions, it also covers delivery in the wrong quantity or description, installment deliveries, and delivery to carriers or wharfingers.

Finally, it would be justified to conclude that this study emphasizes how crucial it is for both buyers and sellers participating in sales transactions to comprehend the delivery regulations set forth in the Sale of Goods Act, 1930. It offers insightful information about the legal framework controlling delivery and emphasizes how important it is for parties to abide by these regulations in order to guarantee seamless and legal transactions. This study highlights the significance of these regulations in protecting the interests of all parties concerned by illuminating their practical ramifications.

In conclusion, this study highlights the importance of the Sale of Goods Act, 1930's delivery regulations in promoting efficient and legal sales transactions. These regulations improve the effectiveness and fairness of business transactions by establishing a clear legal framework for the transfer of products, which eventually helps both buyers and sellers in the marketplace.


  1. P.M Bakshi, Review of THE SALE OF GOODS ACT, 1930 (1st Ed.), by P. R. Desai, 34 Journal of the Indian Law Institute 149-151 (1992).
  2. Hammond v. Anderson (1830) 1 B. & P.N.R. 69
  3. Juggernath Khan v. Maclachlan (1881) 6 Cal 681
  4. The Sale of Goods Act, 1930, 36, No. 9, Acts of Parliament, 1930 (India).
  5. Grenon v. Lachmi Narain (1896) 4 Cal 8 LR 23 IA 119
  6. Nagnath Kaulwar & Sons v. Govindram Shyamasunder AIR 2004 Bom 271
  7. Barium Chemicals Ltd. v. Andhra Pradesh Mining Corporation Ltd (1980) Andh. W.R. 350

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