Buyer's rights are the legal entitlements a buyer acquires when purchasing goods under a contract of sale, enforceable against the seller and third parties in defined circumstances.
## Core concept
Under the Sale of Goods Act 1930, a buyer obtains two sets of rights:
- Against the seller – for breach of contract, failure to deliver, or defective goods
- Against third parties – after property (ownership) transfers to the buyer, generally protecting ownership and possession
The buyer's remedies depend on whether the property in goods has passed to them. Before property transfer, the buyer has limited rights. After transfer, the buyer becomes the owner and gains full ownership rights.
## Main buyer's rights (Section 55–59, Sale of Goods Act 1930)
Right to claim delivery of goods - Buyer can demand goods as per contract terms - If seller wrongfully refuses delivery, buyer can sue for damages or specific performance
Right to claim damages - If seller delivers goods in breach of condition or warranty (Section 55(1)) - Damages = loss suffered by buyer, not loss of profit in resale
Right to reject goods - Before property passes: buyer can reject for material breach of condition - After property passes: buyer retains right to reject only within reasonable time and for valid cause (Section 36) - Rejection must be communicated promptly; silent retention = acceptance
Right of lien (Section 41–43) - Unpaid seller has lien to retain goods until payment - Buyer's correlative right: cannot demand goods until payment if seller exercises lien lawfully - Once property passes, lien can only be claimed if buyer is insolvent
Right to rescind contract - If fundamental breach occurs before delivery, buyer may rescind (reject contract entirely) - Must exercise within reasonable time
Right of stoppage in transit (Section 50–52) - Applies when seller is unpaid and buyer becomes insolvent *before delivery* - Seller can stop goods while in transit and resume possession - Buyer's right: cannot claim delivery until solvency restored
Right to sue for non-delivery - If seller fails to deliver on due date, buyer may sue for damages (Section 57) - Measure of damages = market price on delivery date minus contract price
## Common exam applications
Scenario: Buyer orders 100 bags of flour for ₹50,000. Seller delivers only 80 bags. Buyer pays full amount. Buyer now seeks damages.
- Buyer cannot reject (property has passed by acceptance)
- Buyer can sue for breach of warranty (implied condition of quantity, Section 15)
- Damages = price of 20 bags at market rate or contract rate, whichever applies
Auction sale context – Buyer's rights are limited; implied warranty of title is weaker (Section 62(1)(a)). Buyer purchases "as is, where is."
## Common mistakes
- Confusing lien with stoppage: Lien = seller holds goods after property passes; stoppage = seller recaptures goods while in transit. Lien applies after, stoppage applies during transit.
- Forgetting "reasonable time": Buyer cannot indefinitely hold goods and then reject; rejection must occur within reasonable time.
- Assuming buyer always wins breach claims: Buyer must prove loss causally linked to breach; speculative losses are excluded.
- Ignoring caveat emptor in auctions: In auction sales, "buyer beware" applies; seller's liability is limited unless fraud is proved.
## Key distinction: Buyer's claim vs. Seller's claim
Buyer seeks delivery + damages. Seller seeks payment + retention rights. Their rights often conflict—the Act balances them via property transfer timing and implied conditions.