Prepared By VISHAL GOEL

Till, 1930 transaction relating to sale and purchase of goods were regulated by the Indian contract Act, 1872.

In 1930, Section 76 to 123 of the Indian Contract Act,1872 were replaced and a separate Act called ‘ The Indian Sale Of Goods Act was passed.

Came in to existence on 1st July 1930. Based on English sale of goods act 1893.   All general principles of law of contract applied in sale

of goods act also.  

It deals with sale not with mortgage or pledge.

It deals with goods but not with other movable property.

immoveable goods covered by transfer of properties act.

Sec-4 “ contract of sale is a contract whereby the seller transfers or agrees to transfer the property in gods to the buyer for a price.”

It is generic term include both dale and agreement to sell.

Property: Transfer of ownership in goods. Movable goods Price: Price or consideration of goods must be

money. Parties: Two parties only. Buyer & Seller. Form: May be made in writing or by word of

mouth.

Seller and BuyerThere must be at least two parties: - Seller and

buyer,

as the property in the goods have to pass from one person to another.

The buyer and the seller must be different persons.

A person cannot by his own goods.

Goods means every kind of movable property other than actionable claims and money and includes stock

and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.

1. Thus, immovable are not goods and the Act does not apply to sale of immovable property like land, building, plant erected at site etc. Thing attached to earth like ‘Standing crop or ‘tree’ is ‘goods’ only when it is agreed to be served before sale or under contract of sale.

2. Actionable claim is a claim which can be enforced by going to the court. Ex: a debt due from one person to another is an actionable claim. An overdue debt is an actionable claim, since the creditor can take action against the debtor to enforce the claim by going to a court of law. Thus, an actionable claim cannot be bought and sold as goods, though it can be assigned.

Transfer of property means transfer of ownership. Mere transfer of possession can not be termed as a sale.

Sec.2(11) ‘Property means general property in goods and not merely a special property.’

General property means all ownership rights and special property means limited rights.

The consideration for the contract of sale must be money.

If goods are exchanged against goods the transaction is barter and not covered by the act.

However consideration may be partly in money and partly in goods.

NO SPECIAL FORMALITIES ARE REQUIRED FOR CONTRACT OF SALE. IT MAY BE IN WRITING OR ORAL OR IMPLIED.

Essentials elements of a Valid Contract

1. Offer and Acceptance2. Delivery and Payment

1. ( immediate, at some future dates, by installments)

3. Express or implied1. Express – in writing, by word of mouth, partly2. Implied from the conduct of parties

When property is transferred from seller to buyer at the time of formation of contract, an absolute sale occurs.

When property in the goods is to be transferred at some future date and not at the time of contract, the contract of sale is termed as an agreement to sell.

Contract of Sales includes [Sec-4(3)]

Sale Agreement to sell

i.e., where the ownership In Goods istransferred

i.e., where the transfer of ownership in goods is to take place at a future time or subject to Fulfillment of some condition

Sale WHEN THERE IS A TRANSFER OF OWNERSHIP OF GOODS FROM

ONE PERSON TO ANOTHER PERSON FOR SOME PRICE, THE SAID TRANSACTION IS CALLED SALE.

  Essentials:-  Property Movable goods Price Parties Form:- written or oral   Agreement to sell WHEN THE TRANSACTION OF SALE IS TO OCCUR ON A FUTURE

DATE DEPENDING UPON THE FULFILLMENT OF A CONDITION, THEN SUCH AGREEMENT IS KNOWN AS AGREEMENT TO SELL.

Sale1. Transfer of ownership of goods

takes place immediately2. It is an executed contract.3. Buyers gets a right to enjoy the

goods against the whole world including seller.

4. Transfer of risk of loss of goods takes place immediately because ownership is transferred.

5. Seller can sue the buyer for the price even though the goods are in his possession.

6. property & risk of the goods pass on to the buyer

7. loss will be borne by the buyer even if the possession is with seller.

Agreement to sell1. Transfer of ownership of goods

takes place at a future time.2. It is an executory contract.3. Buyers does not get such right to

enjoy the goods. 4. Transfer of risk of loss of goods

does not take place because ownership is not transferred.

5. He can sue the buyer for damages even though the goods are in the possession of the buyer.

6. does not pass on to buyer immediately.

7. seller will have to pay for loss.

It means an agreement under which goods are left on hire and under which the hirer has an option to purchase

them in accordance with the term of the agreement and

includes the agreement under which:1. Possession of goods is delivered by the owner thereof to

a person on condition that such person pays the agreed amount in periodical installments.

2. The property in the goods is to pass to a such person on the payment of last installment.

3. Such a person has a right to terminate the agreement at any time before the property so passes.

Goods mean every kind of movable property other than actionable claims and money, and includes the following:

1. Stock and shares2. Growing crops, grass and thing attached to or

forming part of the land which are agreed to be served before sale or under the contract of Sale

Examples:Old rare coins, stock, shares, debentures,

goodwill, patents, trademark, copyright, water, gas, electricity, grass, growing crops, trees to be cut and their log wood delivered.

Actionable claim Money Immovable property

Types of Goods

Existing Goods Future Goods Contingent Goods

Specific Gods Ascertained Goods Unascertained Goods

Existing goods are such goods as are in existence at the time of the contract of sale, i.e., those owned or possessed by the seller.

Kinds of existing goods Specific goods Ascertained goods Unascertained goods

Future goods: means goods to be manufactured or produced or acquired by the seller after making the contract of sale. Thus, under the Act, a contract of sale of future goods, e.g. 1,000 quintals of potatoes to be grown on A’s field, is not illegal, though the actual sale of future goods is not possible. This is an example of “agreement to sell”

Ex: X agrees to sell to Y all the crops to be grown at his farm in Haryana during the year 2009 for a sum of Rs.1,00,000. This is an agreement to sell future goods and not a sale.

Contingent Goods: - Goods, the acquisition of which by the seller depends upon happening/ non – happening of an uncertain event (contingency).

E.g.: x agrees to sell 10 units of an article provided the ship, which is bringing them reaches the port safely.

Ex: X agrees to sell to Y all the crops to be grown at Z’s farm in Delhi during the season of 2009 for a sum of Rs. 2,00,000 if Z sells the same to X. This is an agreement to sell contingent goods because the availability of crops depends on its sale by Z.

Existing Goods- goods which are either owned or possessed by the seller at the time of contract of sale.

a) specific goods, b) ascertained goods, c) unascertained goods.

Specific Goods: - Goods identified and agreed upon at the time a contract of sale is made Eg: A car, a table.

Ascertained Goods: - Goods identified subsequent to the formation of the contract of sale. The terms, ascertained and specific are commonly used for the same kind of goods. The goods are ascertained when out of a mass of unascertained goods, the quantity contracted for is identified and set aside,

Eg: - A, a TV shop owner, agreed to sell B a particular model TV identified by the customer out of the several TVs on display.

Unascertained Goods: - Goods not identified at the time of making of the contract of sale. They are no definite and specific. They are goods defined by description only.

Eg. A visits a TV sales showroom and agrees to buy a TV out of the 50 models on display. The shop owner agrees to sell. This sale agreement is for unascertained goods as the specific TV is yet to be identified.

Ex: X goes to Maruti Car Showroom where 10 Maruti cars have been displayed. X agrees to buy one Maruti car 800 and the seller agrees to sell. Here, 10 cars will be classified as under:

1. 10 cars are unascertained goods before the identification of a particular car to be sold.

2. 9 cars are unascertained goods after the identification of 1 particular car to be sold. Such one particular car to be sold is an ascertained goods.

3. 1 particular car identified and agreed upon at the time when the contract of sale is made is specific goods and other 9 car are unascertained goods.

In case of Contract of Sale Sec-7: Contract of sale is void if 3 conditions are satisfied-1. There must be contract of sale for specific goods.2. Goods must have perished or become so damaged3. The seller must not be aware about the destruction of goods.

( based on impossibility of performance)

Ex: X sold to Y all 700 bags of cement lying in his Delhi godown. State the legal position

If (i) if unknown to X, all bags had been stolen before the contract was made.(ii) If unknown to X, the cement had becomes stolen as a result of heavy rainfall.(iii) if unknown to X, 109 bags had been stolen at the time of making the contract.

It becomes void if 4 conditions are satisfied:1. An agreement to sell specific goods2. Goods have perished or damaged3. Not any fault by seller or buyer4. Risk must not have passed to the buyer i.e. the goods must have

perished before the agreement to sell becomes sell.

Ex: X agrees to sell a particular horse to Y on the expiry of 8 days. The horse was delivered on trial for 8 days. However the horse died on the third day, without any fault of either buyer or seller. This agreement became void and X could not recover the price from Y.

The possible causes of perishing of goods:-1. Physical destruction of goods.2. Damage of goods in such a manner that they

loose their commercial value.3. Loss of goods by theft.4. Lawful acquisition of goods by government.

Goods perishing before formation of the contract.- in case of specific goods such contract is void ab initio as the performance of the contract is impossible due to destruction of subject matter.

Goods perishing before the sale but after the agreement to sell.:- in case of specific goods the contract of sale becomes void and both parties are excused from the performance. (Sec.8)

Effect of perishing of future goods.:- Sec.8 applies in this case also which says ‘where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided.’

Sec.2(10) defines the price as ‘the money consideration for the sale of goods.’

Price has to be in terms of money.

3 modes of determining the price Price is mentioned in the contract. The manner of fixing the price is mentioned in

the contract. It is determined by the course of dealings of the

parties. when price is not fixed by any of the above modes a ‘reasonable price’ is considered as the price of the contract.

Earnest money: means security for due performance of the contract.

Advance payment: means the payment of the price of the goods in advance which is to be adjusted against the ultimate total price of the goods.

When time is stipulated regarding the payment of price :-

Time of payment is not considered the essence of the contract unless a different intention appears from the terms of the contract.

Thus if payment is not made in time the seller can not avoid the contract but can claim damages.

When time is stipulated regarding delivery of goods:-

time of delivery of goods is normally considered essence of the contract. Thus non performance at stipulated time will render the contract voidable at the option of the buyer.

A Stipulation refers to demand, requirement, provision, or specification of a bargain, exchange , etc.

A contract contains some stipulations or terms.

A stipulation essential to the contract is called a Condition.

A stipulation which is collateral or incidental to the contract is called a Warranty.

What is a Condition? [Section 12 (2)]A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat it as

repudiated or broken.Ex: Ravi asked a car dealer to suggest him a car

suitable for touring purposes. The dealer suggested a ‘Buggati Car’. Accordingly, Ravi purchased it but found it unsuitable for touring purpose. In this case, suitability of car for touring purpose was a condition of contract. Ravi was, therefore entitled to reject the car and have refund of the price paid. ( Baldry Vs. Marshall)

A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages

but not to a right to reject the goods and treat the contract as repudiated or broken.

Ex: Ashok asked a car dealer to suggest him a good car and while suggesting the car, the dealer said that it could run for 20 km per litre of petrol. But the car could run only 15 kms per litre of petrol. In this case, the statement made by the car dealer was a warranty. Ashok was, therefore not entitled to reject the car but he was entitled to claim the damages.

Express Conditions and Warranties: Desire to buy a TV of particular Model No. is express

condition In an advertisement by Khaitan fans, guarantee for 5

years is an express warranty. Implied Conditions and warranties

Implied Conditions: Condition as to title (Section 14): There are 3

implied conditions on the part of seller w.r.t. title to the goods.(i) Sale – seller has a right to sell the goods. ATS – seller will have the right to sell at the time when property is to pass.(ii) Buyer shall have and enjoy possession of goods.(iii) Goods shall be free from any charge or encumbrance.

Sale by description (Section 15): It means that there is a implied condition that the goods shall correspond with the description. It is obvious that the goods supplied should correspond with the description. Breach of this warranty entitles the buyer to reject the goods.A description can be physical appearance, brand name, trade mark, packing particulars, or particulars of the ship where the goods are to be landed.

Sale by sample (Section 17): There are 3 implied conditions when the goods are supplied according to the sample:(i) Bulk shall correspond with the sample in quality.(ii) Buyer shall have a reasonable opportunity of comparing the bulk with the sample.(iii) Goods shall be free from any defect. The defect shall not be apparent on reasonable examination. Should be latent one.

Warranty as to quality or fitness (Section 16):There is an implied warranty as to the quality or fitness under the following circumstances.(i) Where goods are ordered for specific purpose and the same is made known to seller.(ii) Where the buyer relies on the seller’s skill of judgment. However, if the buyer selects himself then there is no implied condition as to fitness.(iii) Where goods are bought by description from seller there is an implied condition that the goods shall be reasonably fit for such purpose.(iv) By custom or usage of trade, implied condition of fitness is annexed to a contract of sale. For e.g., sale of eatables shall be fit for food.

Warranty as to quiet possession free from encumbrances.The buyer shall have and enjoy quiet possession of the goods [Section 14 (b)].The buyer shall have a right to sell the goods [Section 14 (a)].The goods shall be free from any charge in favor of any 3rd party not declared or known to the buyer before or at the time when the contract is made [Section 14 (c)].

It means “let the buyer beware”. That is, the buyer must take care.

In a contract for sale of goods there is no implied warranty or condition as to the quality or fitness for any particular purpose of goods.

Therefore, the buyer purchases the goods at his risk relying on his own skill and judgment (Section 16).

There are certain cases where the Doctrine of Caveat Emptor does not apply.

Custom or Usage of Trade: Implied warranty/condition as to quality or fitness for particular purpose may be annexed by the custom or usage of trade.

Fraud: Where the seller is guilty of fraud or conceals a defect, he is liable.

For specific purpose: Where the goods are ordered for a specific purpose and seller is made aware of it and the buyer relies on the skill or judgment of the seller, there is an implied condition that the goods shall be reasonably fit.

Merchantable Quality: Where (i) sale is by description and (ii) purchased from the seller who deals in goods of that description, there is an implied condition that the goods are of merchantable quality.

Section 2(2) defines delivery as voluntary transfer of possession of goods from one person to another.

Section 33 states that delivery may be made by doing anything which has the effect of putting the goods in possession of the buyer or authorized person on behalf of buyer.

Deliver of goods may be actual or symbolic.

Delivery and Payment (Section 31). Delivery to be made to buyer (Section 33). Part delivery amounts whole delivery (Section 34). Buyer to apply for delivery (Section 35). Mode of delivery (Section 36(1)): Depends on contract. Place of delivery. Time of delivery (Section 36(2)). Demand at reasonable hour (Section 36(4)). Expenses as a general rule to delivery must be borne by the

seller (Section 36(5)). Installment delivery not to be accepted by buyer (38(1)). Goods delivered at distant place at sellers risk (40).

Acceptance of goods depends on the opportunity to examine the goods delivered (41).

When goods are accepted? (42) When he intimates seller; When he pledges to a sub-purchaser; When after lapse of reasonable time, he retains w/o informing seller of his rejection.

Buyer not bound to return the rejected goods (43): Mere intimation to seller that he refuses to accept is sufficient. Goods are then at seller’s risk.

To receive delivery of goods. To repudiate contract on seller’s breach of

contract. Reasonable opportunity to examine goods. To sue for damages for non-delivery of goods. To recover amount paid if seller fails to deliver. To sue for damages for breach of warranty. To claim interest on the refund of the price in case

of breach of contract.

Duties: To pay for the goods and take delivery

thereof; To apply for the delivery of goods as the

seller is not bound to deliver until the buyer applies for delivery;

To compensate the seller for any loss occasioned by his neglect or refusal to take delivery of the goods and also for reasonable charge for care and custody of the goods.

To receive the price of the goods. To receive compensation or sue buyer for not

taking delivery of the goods. To receive reasonable charge for care & custody

of the goods. If he is unpaid seller then – to exercise his right of

lien; to exercise his right of stoppage in transit; to exercise his right of resale.

To recover interest from the buyer for price due. To sue for damages on buyer repudiating the

contract.

Duties: To deliver the goods when buyer demands. To compensate the buyer in case he

repudiates the contract. To give reasonable opportunity to the buyer

to examine the goods. To refund the amount paid by the buyer in

case he fails to deliver the goods. To compensate the buyer in case of delivery

of wrong quantity.

Meaning of Passing of Property: Transfer of ownership and not the physical possession of goods.

Example: Where a principal sends goods to his agent, he merely transfer the physical possession and not the ownership of goods.

Here, the principal is the owner of the goods but is not having possession of goods.

And the agent is having possession of goods but is not the owner of goods.

The Time of transfer of ownership of goods decides various rights and liabilities of the seller and the buyer.

It is necessary to know the exact time.1. Who shall bear the risk: Owner2. Who can take action against third party: owner3. Whether a seller can sue for price: Seller if ownership is

transferred to buyer.4. In case of Insolvency of a buyer whether the official receiver or

assignee can take the possession of goods from seller: The official receiver or assignee can take the possession from seller if ownership is transferred to buyer.

5. In case of insolvency of a seller whether the official receiver or assignee can take the possession of goods from buyer: if ownership is not transferred

Ascertaining the time at which the ownership is transferred from seller to buyer, the goods are classified in to 3 category:

1.Specific or ascertained goods2.Unascertained goods3.Goods sent on approval or on sale on return

basis

Specific Goods: Goods identified and agreed upon at the time when a contract of sale is made.

General Rule: Ownership is transferred to the buyer at such time as the parties intend it to be transferred.

Ascertainment of the Intention: Term of the contract, conduct of the parties and the circumstances

of the case.

Unless a different intention appears, the following rules are applicable.

Case 1: Where there is an unconditional contract for the sale of specific goods in a

deliverable state. Sec-20 Unconditional Contract: containing no condition regarding the transfer of

ownership. Deliverable State: such state the buyer would be bound to take delivery of

the goods under the contract. It is immaterial whether the time of payment of the price or delivery of goods,

or both are postponed.

Time When the Ownership is Transferred: When the Contract is made Ex: X bought from Y a heap(bundle) of wheat the weight of which is 1000

Kg. at the rate of Rs.8 per Kg., and agrees to pay the price on the first day of the next month and the wheat is to be delivered at X’s godown on the following day. A fire broke out and the entire quantity of wheat was destroyed. In this case X is liable to pay the price because the ownership has transferred from Y to X on making the contract even though the price has not been paid and the goods have not been delivered.

Case 2: Where there is a contract for the sale of specific goods not in a deliverable state Sec-21:

Time When the Ownership is Transferred: When the goods are put into a deliverable state and the buyer has notice thereof.

Ex: X bought from Y a heap of wheat (weight 100 kg.) at the rate of Rs.8 per kg. and Y had to put the wheat in bags to deliver it to X. Y filled some bags in X’s presence, but before the remainder could be filled, a fire broke out and the entire quantity of wheat was destroyed. In this case, X is liable to pay the price for the wheat which was put into bags because the ownership in respect of these goods has passes when Y has put the wheat in bags and the buyer has notice thereof.

Case 3: Where there is a contract for sale of specific goods in a deliverable state but the seller has to do some act to ascertain the price:

Time When the Ownership is Transferred: When the seller has done that act to ascertain the price and the buyer has notice thereof.

Ex: X bought from Y a leap of wheat @ Rs.8 per kg. and Y had to weight the wheat. Before weighing was completed, the wheat was destroyed by fire. In this case X is not liable to pay the price because the ownership of goods has not passed from Y to X.

1. The Ownership of UG is transferred when 2 conditions are fulfilled: The goods must have been ascertained. The goods must have been unconditionally appropriated by the

seller or the buyer with the consent of the other.

Ex: X agreed to sell 100 bags of wheat to Y out of his stock of 500 bags. A fire broke out and the entire quantity of wheat was destroyed. State who shall bear the loss and why?

1. If no bags had been separated before fire for the purposes of delivery to Y.

2. If 100 bags had been separated before fire with Y’s consent.

Latin Maxim : “ Namo dat quod non habet” Means: No one can give what he does not himself

possess.

1. Sale by a mercantile agent2. Sale by one of joint owners3. Sale by persons in possession under voidable contract4. Sale by buyer in possession before transfer of ownership5. Sale by unpaid seller6. Sale by Pawnee7. Sale by finder of goods8. Sale by official receiver or assignee9. Sale by owner by estoppel

Meaning: Voluntary transfer of possession from one person to another.

Mode of Delivery:1. By doing anything which the parties agree2. By doing anything which has the effect of putting the goods into

buyer’s possession

1. Actual Delivery: When goods are physically handed over to the buyer or his authorised agent.

2. Symbolic Delivery: where some symbol of the real possession or control over the goods is handed over to buyer.

3. Constructive Delivery: Where a person who is in possession of the goods, acknowledges to hold the goods on behalf of the buyer.

1. Payment and delivery to be concurrent2. Mode of delivery3. Effect of part delivery4. Buyer to apply for delivery5. Place of delivery6. Time of delivery7. Delivery when the goods are in possession of a third party8. Demand of delivery to be treated as ineffectual9. Expenses of delivery10. Delivery of wrong quantity11. Delivery by instalment

Who is an unpaid seller? (Section 45)1. One who has not been paid or tendered

the whole of the price or 2.one who receives a bill of exchange or other

negotiable instrument as conditional payment and the condition on which it was received has not been fulfilled by reason of the dishonor of the instrument.

Right of lien (Section 47): Entitled to retain possession until payment under the following cases:

(1) Where goods have been sold w/o any stipulation as to credit.

(2) Where goods have been sold on credit and the term has expired.

(3) Where the buyer becomes insolvent and the seller is in possession of the goods.

(4) When u.s. has made part delivery of goods, he may exercise right of lien on the remainder.

Right of stoppage in transit (Section 50): When the buyer of goods becomes insolvent, the u.s. who has parted with the possession of the goods has the right of stopping them in transit.That is, he may resume possession of the goods as long as they are in the course of transit and may retain them until payment.Transit does not mean that the goods should be in motion. If it is with a middle man who is required deliver the goods to the buyer, but has not reached it to the buyer, then goods are said to be in transit.

Essentials: (i) Seller must be unpaid wholly or partly. (ii) Buyer must have become insolvent. (iii) The goods must be in transit.

When does transit of goods come to an end?When buyer acquires possession or is deemed to acquire possession of the goods under following circumstances:Taking delivery from carrier or bailee.Obtains delivery before arrival at appointed destination.Carrier/bailee wrongfully refuses to deliver to the buyer or his agent.When part delivery has been given and where it is decided to give up possession of the whole of the goods.

How is stoppage in transit effected?(i) By taking actual possession of the goods; or (ii) By giving notice of his claim to the carrier in whose possession the goods are, to re-deliver to the seller or according to his directions.

When is right of stoppage in transit lost?Upon delivery of the goods; Carrier acknowledges to buyer that he holds goods on his behalf; Carrier wrongfully refuses to deliver; or where part delivery has been made.

Right of Re-Sale (Section 54): He can resell the goods under the following circumstances:Where goods are of perishable nature;Where the seller gives notice to the buyer of his intention to resell and the buyer does not pay within a reasonable time after notice;Where the seller has expressly reserved his right of re-sale in case the buyer makes default.Where upon re-sale profit is made, the u.s. is entitled to retain profits.

Right of withholding delivery. Seller reserves the right of disposal over the

goods (Section 25). Right to sue buyer personally for the price of the

goods (Section 55). Right to sue for damages for wrongfully

neglecting or refusing to accept the goods (Section 56).

To recover interest from buyer where there is specific agreement to that effect.

Suit for Price (Section 55)If the buyer neglects or refuses to pay as per terms of contract, seller may sue him for the price of the goods.

Suit for Damages (i) For non-acceptance: (Sec. 56) Where buyer wrongfully neglects or refuses to accept and pay, the seller may sue for damages for non-acceptance.

(ii) For repudiation of contract – Anticipatory breach: (Sec.60) If buyer repudiates contract before date of delivery, seller may either treat it as subsisting and wait till delivery date, or he may treat the contract as rescinded and sue for damages for the breach.This remedy is in anticipation of the breach of contract popularly known as anticipatory breach of contract.

Suit for damages for non-delivery of the goods (Section 57).

Suit for specific performance (Section 58). Suit for breach of warranty (Section 59). Suit for repudiation of the contract –

Anticipatory breach (Section 60).This is similar to seller claiming damages for repudiation or anticipatory breach of contract.

Suit for interest by way of damages and special damages (Section 61).

The seller or buyer shall have the right to recover interest or special damages. The provisions of this section is summarized as:

(i) Interest shall be payable at such a rate as the Court may think fit.(ii) Interest may be awarded to the Seller if there is provision in the

contract.(iii) If it is recoverable by law, interest shall be payable.(iv) Interest may be awarded to the Buyer if there is provision in the

contract.(v) Interest may be awarded u/s 80 of the NI Act.(vi) Interest prior to the suit may be awarded under circumstances

like agreement at a fixed rate, usage of trade, etc.(vii) Credit sales: interest awarded from expiry of the credit.(viii) No interest can be recovered on damages.