What Can the Seller Do when the Buyer Refused to Pay Purchase Price of the Goods ?
Under Section 51 of the Sale of Goods Ordinance (Cap. 26), the seller can claim against the buyer for the price of the goods under a contract of sale of goods in one of the following situations:
(1) when the property in the goods has passed to the buyer, and the buyer wrongfully neglects or refuses to pay for the price of the goods; or
(2) when the price of the goods is payable on a certain day irrespective of delivery, and the buyer wrongfully neglects or refuses to pay such price, the seller can maintain an action for the price, although the property in the goods has not passed, and the goods have not been appropriated to the contract.
What Can the Seller Do when the Buyer Refused to Accept the Goods ?
(1) Under Section 52 of the Sale of Goods Ordinance (Cap. 26), the seller can claim against the buyer for damages for non-acceptance of the goods when the buyer wrongfully neglects or refuses to accept and pay for the goods.
(2) The amount of damages that could be claimed is the estimated loss directly and naturally resulting, in the ordinary course of events, from the buyer's breach of contract.
(3) Where there is an available market for the goods in question, the amount of damages is prima facie to be determined by the difference between the contract price and the market or current price at the time or times when the goods ought to have been accepted.
(4) If no time was fixed for acceptance under the contract of sale of goods, the amount of damages is prima facie to be determined by the difference between the contract price and the market or current price at the time of the neglect or refusal to accept.
For legal services and advice on recovery of purchase price of goods and other sale of goods claims, please contact our CHOW & CHEUNG, HK solicitors & HK notary public [E-mail: cac@ccsn.hk / Tel: +852 2856 3078]
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