Delivery under Sale of Goods Act

A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. Sale of goods Act, 1930 provides the provisions related to contract of sale. Section 2 (2) of Sale of goods act, 1930 defines delivery. According to this section delivery is the voluntary transfer of possession from one person to another person. The person delivering the possession is called seller and the person to whom it is delivered is called buyer. The delivery of goods can be done by doing anything which the both of the parties agrees with. It can be actual delivery constructive delivery or symbolic delivery.

There are different rules of delivery. They are included in section 32 to 39 of the same act. Some of them are:


1) Payment and delivery to be concurrent:-

According to section 32, unless otherwise agreed, the delivery and the payment of the goods must be done at same time. That is by the time of payment by buyer, the seller must be ready with the goods

2) Modes of delivery

According to section 23 delivery must have the effect of putting the buyer or his authorized agent with the possession of the goods.

3) Part delivery effects.

Section 34 provides for the rules relating to partial delivery. Partial delivery with the intention of delivering the whole part have the effect of transter of possession. Where as, if The Intention is not to deliver the whole part, it does not amount to delivery

4) Place of delivery (Section 36(1))

When a sale of good contract is made the parties must agree on these terms. The place of delivery is depended on the terms of the agreement. The seller may deliver or the buyer may come and take according to the agreement. When there is no conditions relating to that, as per law, goods are sold at the place where their contract is made.

5) Delivery when goods are in possession of a third party.

If the goods are in the possession of a third party, he must acknowledge to the buyer that he hold the goods on behalf of him.

6) Demand of delivery must be made at reasonable time

According to Section(4) the demand for the delivery must be made by the buyer with in a reasonable time. Otherwise it become ineffective.

(7) Expense of delivery (section 36(5))

Unless otherwise agreed, the seller must bear the expense of putting the goods to deliverable state.

8) Acceptance of delivery of goods (section 42)

buyer is accepting the delivery

→ when he informs the seller he has accepted the goods or

→ retain the goods beyond reasonable time.

→ does something to the goods inconsistent with his ownership.

9) Delivery of wrong quantity (Section.39) Buyer has the option either to accept or reject the goods in wrong quantity . He need to pay extra rate if he is choosing to accept the excess quantity.


Law of contract, Subba Rao

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