DUTIES OF THE BUYER CONTENTS
1.0. Introduction.
2.0. Objective.
- Main Body
- Duty to pay the Price
- Duty to accept the goods
- Acceptance and Examination
4.0. Conclusion
5.0. Summary
6.0. Tutor Marked Assignments (TMA)
7.0. References/Further Readings.
INTRODUCTION
Once an agreement with respect to goods has occurred between two or more people for the purpose of business, they both have duties to fulfill as buyer and seller of such good.
It is however important to note that these duties are paramount to the success of the business transactions and will also enhance the growth of commercial transactions world over.
In this unit, the duty of the buyer is discussed as it is as paramount as the duties of the seller of the goods.
Payment for the goods is a major duty of the buyer as well as the duty to accept the goods as transacted after the seller fulfills its duty in the transaction.
OBJECTIVE
The main purpose of this unit is to distinguish between the duties of the buyer from that of the seller and give a detailed explanation of the duties of the buyer to the seller.
MAIN BODY
DUTY TO PAY THE PRICE
It is the primary duty of the buyer to pay for the price of the goods supplied to him. Payment for the goods and delivery of the goods are concurrent conditions and the buyer is not entitled to claim possession of the goods unless he is ready and willing to pay the price in accordance with the contract.
Section 28 of the Act states that:
“delivery of the goods and payment of the price are concurrent conditions, that is to say, the seller must be ready and willing to give possession of the goods in exchange for the price, and the buyer must be ready and willing to pay in exchange for possession of the goods.”
It is important therefore that the principle of cash on delivery is implicit in a contract of sale, if the buyer pays by cheque or any negotiable instrument that is regarded as a conditional payment, because if the cheque is dishonoured, the seller may sue for the instrument or for the price of the goods.
In Bekederemo v. Colgate-Palmolive (Nig) 1976, a clause in the contract stipulated that “all purchases of the company’s goods by the distributor shall strictly be for cash payments: provided that the company will grant up to thirty days credit after delivery of goods by the company to the distributors within which the distributors shall effect payment in full for all goods received.”
The seller supplied goods on nine occasions in 1972 for which the buyer could not pay cash on all occasions thereby leaving a substantial balance. Notwithstanding this, the buyer insisted that he was entitled to further supplies of goods, and that the seller’s failure to supply him amounted to breach of contract. The court held that the seller’s duty to supply the goods and the buyer’s obligation to accept them and pay immediately or within thirty days (if credit was granted) were concurrent and correlative duties. The buyer therefore could not insist on deliveries when he was unable to pay for them.
DUTY TO ACCEPT THE GOODS
This is also one of the major duties of the buyer, the duty to accept the goods in accordance with the terms of the contract. In this instance, acceptance in essence involves taking possession of the goods by the buyer. And delivery of the goods by the seller is of the essence in the contract.
Note that if the buyer fails to take delivery in time, that will not justify the seller in selling the goods to another person, unless the delay is clearly unreasonable to justify the seller to conclude that the buyer has repudiated the contract.
ACCEPTANCE AND EXAMINATION
Where goods are delivered to the buyer, which he has not previously examined, he is not deemed to have accepted them, unless and until he has had a reasonable opportunity of examining them for the purpose of ascertaining whether they are in conformity with the contract. See Section 34(1)
By virtue of Section 34(2), unless otherwise agreed, when the seller tenders delivery of goods to the buyer, he is bound, on request, to afford the buyer a reasonable opportunity of examining the goods for the purpose of ascertaining whether they are in conformity with the contract.
The conduct of the buyer could amount to an acceptance of the goods having regard to the provisions of section 35. In Hardy and Co. Ltd v. Hillerns and Fowler (1923) 2 KB 490, X contracted to sell to Y wheat to be shipped from South America. The ship carrying the wheat arrived at Hull on 18th March. On 21st March, Y resold and delivered part of the wheat to Z. On 23rd March, Y had its first opportunity to examine the goods and, on doing so found them not to conform to the contract. Consequently, he rejected them. In other words, before the expiration of a reasonable time for examination, Y rejected the wheat for non-conformity with the contract.
It was held that, the sale and delivery to Z was an act inconsistent with the ownership of X and Y had, therefore accepted the goods under section 35 of the Act and lost his right of rejection.
CONCLUSION
It is important to note that the duties of the buyer are paramount in the contract between the buyer and the seller in the contract of sale of goods. The duty of the buyer is the acceptance of the goods and the payment of the said goods. In some instances, the conduct of the buyer may make him forfeit his right of rejection after examination of the goods.
SUMMARY
The duties of the buyer is important in the contract of sale especially in C.I.F and F.O.B contract. The most important amongst them is the duty to examine and accept the goods and also the duty to pay for the goods.
It is pertinent to note that the duties of the buyer are concurrent with those of the seller in any contract of sale.
TUTOR MARKED ASSIGNMENT (TMA)
- Briefly, explain the principle of payment for goods as enunciated in the case of Bekederemo v. Colgate-Palmolive.
- Outline and explain the duties of the buyer in a contract of sale of goods
REFERENCES/FURTHER READING
- Sales of Goods
- Rawlings, Commercial Law University Of London Press (2007)
- Okany Nigerian Commercial Law, Africana .FEP Publishers Limited (1992).
- A. M. Agbonika and J. A. A. Agbonika, Sale of Goods (Commercial Law), 2009, Ababa Press Ltd
- J. Okoro (2013), Business Law for Professional Exams, MaltHouse Press Ltd.
- Sofowora General Principles of Business and Coop Law, Soft Associates (1999).