Who is a “SELLER” ?
Seller as defined in section 2(13) of The Sale of Goods Act, 1930 means a person who sells
or agrees to sell goods. Goods under this definition include both movable and immovable
goods that capable of being severed. For instance, a crop till the time is attached to the earth is
not good but the moment severed from earth comes a good. The law of sale of good was
earlier a part of Indian contract act, 1872 under chapter VII but was found to be inadequate
due to the increasing mercantile transactions in the wake of rapid Industrialization.
When the property in goods is transferred from the seller to the buyer for a price, then it is
termed as a sale. But where the transfer of property has to take place at a future date on the fulfilment
of a condition, then it is termed as an agreement to sell.
Under the Sale of goods act, certain duties are prescribed for buyer and seller under chapter
IV. Under section 31 of the Act, the major obligation of the seller under the sale contract is to
deliver the goods according to the terms of the contract. The delivery of the goods and the
payment of the price are concurrent conditions. There should be a willingness on the part of
the seller to deliver the goods to the buyer.
Under the duty of delivery of goods following should be complied by the seller as per section
36 and 37 of the act:
1. The seller must have and hold the agreed goods that are to be delivered for the
fulfillment of the contract.
2. The seller must notify the buyer to take the delivery of the goods
3. The seller must put the goods in a deliverable state.
4. The goods are to be delivered at the place at which they are at the time of the contract.
The parties can also agree upon the place where goods are to be delivered.
5. The seller must send the goods within a reasonable time when no time for sending
them is fixed between the parties.
6. The hour of sending the goods must also be reasonable.
7. The expenses of and incidental to putting the goods into a deliverable state shall be
borne by seller.
8. It is the duty of the seller to deliver right quantity and quality of the goods to the
buyer. In case there is a defect in the quantity i.e. where more goods are delivered or
less quantity of goods are delivered or the goods or quality i.e. the goods are mixed
with goods of a different description not included in the contract, the buyer may reject
the delivery of the goods.
It is also the duty of the seller to deliver the absolute and effective title to the goods, to the
Another duty of the seller under section 39(2) of the act is to make with the carrier such
contract as may be reasonable having regard to the nature of the goods and the other
circumstances of the case. The purpose of this duty is to secure for the buyer such contract of
carriage as will enable the buyer to sue the carrier in case the goods are lost. It was held in
Clarke v. Hutchins that if the seller fails to make such a contract the buyer may refuse to treat
the delivery to the carrier as delivery to himself or may hold the seller liable for damages. Under
the shipment contract the seller must do the following:
1. Provide the goods to the carrier
2. Make a reasonable transport of the goods according to the nature and value of the
3. Provide the buyer with any documents that are necessary to take the delivery of the
4. The seller must notify the buyer that the goods have been shipped.