Remedies available to unpaid seller for breach of contract:

Under the Sale of Goods Act, 1930, an unpaid seller is not only entitled to rights against the goods (like lien and stoppage) but also possesses personal rights against the buyer for breach of contract.

These remedies are categorized into actions for the price, damages for non-acceptance, and rights regarding interest.

1. Suit for Price (Section 55)

This is a direct action to recover the money owed under the contract.

• Property has passed: Where the ownership of goods has transferred to the buyer, and the buyer wrongfully neglects or refuses to pay, the seller may sue for the price of the goods.

• Property has not passed: If the contract specifies a date for payment irrespective of delivery, and the buyer fails to pay on that date, the seller may sue for the price even if the ownership hasn't transferred yet.

2. Suit for Damages for Non-Acceptance (Section 56)

If the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue for damages for non-acceptance.

• Calculation of Damages: The measure of damages is usually the difference between the contract price and the market price on the date when the goods ought to have been accepted.

3. Remedy for Anticipatory Breach (Section 60)

If the buyer repudiates (cancels) the contract before the date of delivery arrives, the seller has two options:

• Wait: Treat the contract as still subsisting and wait until the actual date of delivery to see if the buyer performs.

• Act Immediately: Treat the contract as rescinded immediately and sue for damages for the breach, without waiting for the delivery date.

4. Suit for Interest (Section 61)

The seller may recover interest on the unpaid amount.

• Where there is a specific agreement, interest is paid at the agreed rate.

• In the absence of an agreement, the court may award interest to the seller from the date on which the price was payable, or from the date on which a demand for payment was made.

Summary of Remedies

Remedy	Basis	Primary Goal
Suit for Price	Buyer refuses to pay.	To recover the actual contract amount.
Suit for Damages	Buyer refuses to accept.	To recover the loss caused by market fluctuations.
Anticipatory Breach	Buyer cancels early.	To claim damages before the delivery date.
Suit for Interest	Delay in payment.	To compensate for the time-value of money.