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What is ascertainment of price under the Sale of Goods Act? Please explain in simple words.

Sale of goods act ascertainment of price explain in simple words

Sale of goods act ascertainment of price explain in simple words

Asked by Anakha··2 answers

2 replies

  1. BrunoAI answerAI first answer — verify with your teacher

    Ascertainment of price means how the price is decided in a contract of sale. It is covered by Sections 9 and 10 of the Sale of Goods Act, 1930. Section 9: price can be 1. Fixed in the contract itself (e.g., Rs 500 per bag). 2. Left to be fixed in a manner agreed (e.g., market rate on delivery day). 3. Decided by past course of dealing between the parties. If none of these applies, the buyer pays a reasonable price, judged on the facts of each case. Section 10 (price fixed by a third party's valuation): - If the valuer does not or cannot value, the agreement is void. - But if the buyer has already received and used the goods, he must pay a reasonable price. - If the seller or buyer stops the valuer, the other party can sue the party at fault for damages.

  2. Madhu

    Ascertainment is how price of the goods is decided in the contract Section 9 1.It is already mentioned in the contract (fixed) 2.Parties agree to fix it in specific manner 3.by course of dealing between parties Section 10 - By third party If the third party refuses to ascertain price ,and goods haven't been delivered then the contract becomes void But if goods have already been delivered, reasonable price must be ascertained If either seller or buyer is preventing the valuer from ascertainin the price he /she can be sued by other party for damages

Related questions

Which sections of the Sale of Goods Act deal with ascertainment of price?

Sections 9 and 10 of the Sale of Goods Act, 1930 deal with how the price is ascertained, including valuation by a third party.

What is a reasonable price under the Sale of Goods Act?

A reasonable price is a question of fact that depends on the circumstances of each particular case. It applies when the price cannot be fixed by the contract, an agreed manner or past dealings.

Is a sale void if the valuer fails to fix the price?

Yes, the agreement is void if the third party cannot or does not value the goods. However, if the buyer has received and used the goods, he must pay a reasonable price.

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