MLL215 Study Guide - Final Guide: Specific Performance, Helen Baxendale, The Purchase Price
2 Jun 2018
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1. REMEDIES FOR BREACH OF THE CONTRACT OF SALE
REMEDIES OF THE UNPAID SELLER:
S is deemed to be an unpaid seller where:
• the whole of the price has not been paid or tendered;
The unpaid seller has two classes of rights:
• against the goods; and
• against the buyer.
RIGHTS OF THE UNPAID SELLER AGAINST THE BUYER:
S may sue B for the price where property has passed to B and B refuses to pay.
Damages for non-acceptance
The geeral rule is that o B’s o-acceptance of the goods, the measure of
damages recoverable by S is the estimated loss directly and naturally
resulting i the ordiary ourse of evets fro B’s reah of otrat.
Unique items (e.g. second-hand car) – S is only entitled to recover the loss
they have suffered. If S resells goods at a higher price than what original B
agreed to pay, S has suffered no loss, and cannot recover damages from B.
Lazenby Garages Ltd v Wright [1976] 1 WLR 459.
S has a duty to mitigate losses on default of B. S must act reasonably in
reselling the goods to obtain the best price.
WL Thompson Ltd v Robinson (Gunmakers) Ltd [1955] Ch 177:
B refused to accept delivery of car from S. S returned car to supplier.
Held: S were entitled to damages for their loss of bargain = the profit they
would have made from selling the car as they had sold one less car than they
otherwise would have sold.
This was a case where S had replacement goods to sell to other Bs.
Kargotich v Mustica [1973] WAR 167:
B agreed to buy Hay-baling machine from S for $4,920.
S would have made $870 profit.
B refused to accept machine.
Lien: Useful tool if B becomes insolvent
WD: S can withhold where B defaults on
payment (Owner = S)
SOGIT: Goods in transit until B takes them;
S can take actual possession by asking for
redelivery
RS: Where goods are perishable and B has
not paid for goods; S gets profit from RS
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Document Summary
Remedies for breach of the contract of sale. S is deemed to be an unpaid seller where: The unpaid seller has two classes of rights: the whole of the price has not been paid or tendered: against the goods; and, against the buyer. Wd: s can withhold where b defaults on payment (owner = s) Sogit: goods in transit until b takes them; S can take actual possession by asking for redelivery. Rs: where goods are perishable and b has not paid for goods; s gets profit from rs. Rights of the unpaid seller against the buyer: S may sue b for the price where property has passed to b and b refuses to pay. The ge(cid:374)eral rule is that o(cid:374) b"s (cid:374)o(cid:374)-acceptance of the goods, the measure of damages recoverable by s is the estimated loss directly and naturally resulting i(cid:374) the ordi(cid:374)ary (cid:272)ourse of eve(cid:374)ts fro(cid:373) b"s (cid:271)rea(cid:272)h of (cid:272)o(cid:374)tra(cid:272)t.
