Sellers Remedies for Breach of Contract by a Buyer Essay

Sellers Remedies for Breach of Contract by a Buyer - Essay Example The aim of the paper is to analyze the adequacies of the remedies available to a seller in the event of the breach of contract by a buyer. B. Remedies Available To the Seller in Case a Buyer Breaches Contract Any breach of a valid and binding contract gives the aggrieved party the right to sue for damages from the party that has breached the contract4. The English law of contract provides certain remedies to an aggrieved seller whose contract has been breached by a buyer as noted by Whincup5. It is worth noting that unlike buyer’s remedies that are dependent on the acceptance of an offer, seller’s remedies for breach of contract does not depend on the acceptance of the contract6. According to Rowan, regardless of whether the buyer has accepted the goods or not, a breach of the contract entered into with the seller gives the seller the right to sue for incidental damages or sue the buyer for fraud or third-party tort in case the seller still has an interest in the goods7 . The law of contract states that in the event that a buyer wrongfully revokes acceptance, rejects goods, or refuses to pay the amount due in respect of the goods before delivery, the seller is entitled by law to withhold the goods until the buyer pays the total amount due as agreed in the contract. Secondly, the seller also has the right under the law to stop delivery of the goods by any bailee or resell the goods to recover the damages. The law also permits the seller to recover damages from the buyer for non-acceptance of the goods or a price in some cases8. In addition, the seller is also allowed by law to cancel the contract altogether after giving the buyer in breach a notice and after allowing them more time to make up for their breach according to Article 64(1)(b) and Article 63(1) of the CISG9. 1 Seller’s Right to Damages The seller can claim damages from the buyer as long as they result from a breach of contract and the damages are not too remote according to Articl e 61(1)(b) of the CISG10. Essentially, the damages that the buyer pays the seller is aimed at putting the seller in the position he/she would otherwise have been had the contract well performed (Robinson v Harman [1848]) 11. Hadley v Baxendale ([1854]) 12 present the principles of remoteness in respect of damages. For damages to be applied to a party in breach of contract, the losses that the aggrieved party suffers must naturally flow from the breach. Alternatively, the losses that arise from possible breach of contract must have been contemplated by the parties to the contract. Some specific types of contracts are subject to legislation that prescribe remedies in the event a party breaches the contract. A contract that involves the sale of goods, for example, allows a party to recover special damages in line with section 54 of the Sale of Goods Act 1979 (SGA). A seller can claim compensation for reliance loss in case it is not easy to prove loss of expectation (Anglia TV v Reed [1 972])13. As exemplified in Jarvis v Swans Tours Ltd [1973]14and Jackson v Horizon Holidays  [1975]15, a seller can successfully claim damages for mental distress or disappointment in case the contract is, for example, a holiday contract.