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International Islamic University,

Islamabad, Pakistan. Faculty of
Sharia & Law, Female campus.

Assignment (1)

DELIVERY OF GOODS

Submitted to: Madam Sayyeda Fatima

Submitted by: Syeda Khowlah
Subject: sale of goods act, 1930.

Delivery of Goods

TOPICS PAGE NO

INTRODUCTION 3
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MODES OF DELIVERY 4

RULES REGARDING DELIVERY 5–9

CONCLUSION 9

BIBLIOGRAGHY 10
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Introduction
"The transfer of possession of real property or Personal Property
from one person to another.
Delivery is not restricted to the actual physical transfer of anitem— in some
cases delivery may be symbolic. Such is the case where one person gives land
to another person. Landcannot be physically delivered, but delivery 3 of the
deed constitutes the transfer if coupled with the requisite intent to pass the land
on to another. Similarly, delivery can take place in a situation where goods are
set apart and notice is given to whoever is scheduled toreceive them. This is
known as constructive delivery."1
According to Sale of Goods Act 1930:
Delivery means voluntary transfer of possession of goods from one person to
another 2. Delivery of goods sold may be made by doing anything which the
parties agree shall be treated as delivery or which has the effect of putting the
goods in the possession of the buyer or his agent.3
Delivery is a bilateral act. It requires two parties to the act. The essential
elements of delivery are:
A person has possession;
He transfers that possession to another person; He
does so voluntarily.
Sir Frederick Pollock has defined "Delivery" as "voluntary dispossession in
favour of another" and has points out that "in all cases the essence of delivery
is that the deliveror, by some apt and manifest acts puts the deliveree in the
same position of control over the thing, either directly or through a custodian,
which he held himself immediately before that act".4

1-"Delivery", accessed Dec 17, 2017. http://legal-dictionary.thefreedictionary.com/delivery 2

- Sec. 2 (2), Sale of Goods Act, 1930.
3 - Sec. 33, Sale of Goods Act, 1930.
4 -M.A.Mannan, The Sale of Goods Act with Commentary (Lahore :PLD Publishers, 1996), 8.

Modes of Delivery of goods

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Delivery of goods may be made in any of the following three ways:5

1. Actual Delivery: Also known as physical delivery, actual delivery takes

place when the goods are physically handed over by the seller or his/her
authorized agent to the buyer or his/her agent authorized to take possession of the
goods.
For example,
A, the seller of a car hands it over to B, the buyer; it is a case of actual delivery
of the goods.

2. Symbolic Delivery: Where the goods are bulky and heavy and it is not
possible to physically hand them over to the buyer, delivery thereof may be made
by indicating or giving a symbol. Here the goods itself are not delivered, but the
means of obtaining possession of goods is delivered. For example, delivering the
keys of the warehouse where the goods are stored, or the keys of a purchased car
to its buyer.
As stated in case law: Wrightson v. McArthur and Hutchisons (1919), Ltd.

3. Constructive Delivery: In this case neither physical nor symbolic delivery

is made. In constructive delivery the individual possessing the products
recognizes that he holds the merchandise for the benefit of, and at the disposal of
the purchaser. Constructive delivery is also called attornment. Constructive
delivery may be effected in the following three ways.

 Where the seller, after having sold the goods, agrees to hold them as bailee
for the buyer
As stated in case law: Elmore v. Stone, (1809)
 Where the buyer, who is already in possession of the goods as bailee of the
seller, holds them as his own, after the sale
 Where a third party, for example, a carrier/transporter, who holds the
goods, as bailee for the seller, agrees and acknowledges holding them for
the buyer. As stated in case law: Salter v. woollams

5-"Delivery of Goods | Meaning | Modes of delivery", accessed Dec 17, 2017 . https://accountlearning.com/delivery-
ofgoods-meaning-modes-of-delivery/
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Rules Regarding Delivery:

Following are the important rules regarding the delivery of good.

 Duties of seller and buyers:

According to sec. 31.
It is the duty of the seller to delivers the goods to the buyer and it is the
duty of buyer to accept and pay for the goods according to the terms of
the contract.
 Delivery and payment:
According to Sec. 32.
Unless otherwise agreed, the seller should be ready to deliver the goods
to the buyer, in exchange for the price and the buyer should be ready to
pay the price in exchange for possession of goods simultaneously, just
like a cash sale over a counter.
Case law:
The plaintiff agreed to buy a certain amount of corn from the defendant,
and it was agreed that he would pay at the time of delivery. The plaintiff
told the defendant prior to delivery that he was unable to pay for the
corn at the present time of delivery. The defendant, protecting his own
interests did not deliver the corn in anticipation of the plaintiff’s
inability to pay. The plaintiff filed suit for breach of contract because
the defendant did not deliver the corn.
Judgment was for the defendant, Because the corn was to be delivered
at the same time, each party must be ready to perform his part of the contract at
the time he charges the other with non-performance.6  Mode of delivery:
According to Sec. 33
“Delivery of goods sold may be made by any of the ways on which the
parties agree.
Exemples :
• The seller at the buyers request to keep it at livery, and removes the
horse from one part of his stable to another. This is the delivery of
the horse.7

6 - Morton v. Lamb; Court of King’s Bench , (1797) 7 T.R. 125, 101 Eng. Rep. 890. accessed Dec 17,2017.

http://www.cs.xu.edu/~osborn/main/lawSchool/contractsHtml/bottomScreens/Briefs/Morton%20v.%20Lamb.
htm
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7 -Elmore v. stone (1809) ; Mannan, The Sale of Goods Act,208.

• Sale of specific goods which are locked up in a godown. The seller

gives the key of godown to the buyer in order he may get the
goods. This is delivery.8

 Effect of part delivery:

According to Sec. 34.
“Where a delivery of part of the goods has been made with the intention of
delivering the rest of goods also, the ownership in the whole of the goods is
deemed to pass to the buyer as soon as some portion is delivered. But a
delivery of part of the goods, with the intention of serving it from the whole
does not operate as delivery of the remainder.
Case law:
Sale of quantity of goods lying at a wharf. The seller left an order
with the wharfinger to deliver the goods to the buyer who had paid
for them by a bill. The buyer subsequently weighed the goods and
took away part of them. This was held to amount to a delivery of
the whole of the goods.9

 Buyer to apply for delivery:

According to sec 35.
It is the duty of buyer to apply for delivery. If he fails to do so, he cannot
blame seller for non-delivery.
Case law:
In the case Ganesh Das V Ram Nath, it was held that the buyer is under an
obligation to apply for delivery even if the seller is under an obligation to give
notice.10
 Place of delivery:
According to sec. 36.
The goods must be delivered at a specified place which is stated in a contract
during business hours on a working day or at the place at which they are at
the time of sale.
 Time of delivery:
The seller is bound to send the goods to buyer within a fixed time. If there is
no fixed time the seller should send with in a reasonable time.

8 - Mannan, The Sale of Goods Act,209.

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9 -Hammond v. Anderson, (1803) 1 B.&P.N.R.69, 8 R. R. 309. ; Mannan, The Sale of Goods Act,215.
10 -Ganesh Das V Ram Nath 1928.Anju Sarah Abraham; Duties of seller and buyer under the sale of goods act no.III of
1903 (Symbiosis International University, 2011) https://www.scribd.com/doc/80635998/DUTIES-OF-SELLER-AND-
BUYER

Case law:
Sale of 12 puncheons of rum, of which 4 were delivered. The buyer
pressed for delivery of the reminder, but the seller delayed and in the meantime
an act of parliament was passed prohibiting the distillation of such spirits from
molasses, and annulling all contracts for the sale of such spirits. The sellers were
held liable in damages as having failed to deliver within a reasonable time.11
 Goods in possession of third party:
According to sec 36(3)
Where the goods at the time of sale are in the possession of a third
person, there is no delivery by the seller to the buyer unless and until such
third person acknowledges to the buyer that he holds the goods on his behalf.
 Expenses of delivery: According to sec 36(5)
Unless otherwise agreed, the expenses of putting the goods into deliverable
state must be born by the seller.
 Wrong delivery:
According to Sec 37.
A seller is responsible to deliver the goods to the buyer in accordance with
the terms of the contract. In case of wrong delivery, the buyer can reject the
goods. Wrong delivery may be either short delivery, excess delivery or
mixed delivery.
Case law:
Sale of certain articles of china. The seller packed with them other
articles of china, which had not been ordered, and were clearly distinguishable,
and sent them to the buyer. The buyer was entitled to reject the whole. 12 
Instalment deliveries:
According to sec. 38
“Unless otherwise agreed the buyer is not bound to accept the delivery of
goods in installments. If the parties so agree then only the delivery of the
goods may be made by installments.
Case law:
Sale of 25 tons of papers October/November shipment. The seller
shipped 20 tons in November and 5 tons in December. The buyers
were entitled to reject the whole 25 tons.13
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11 -Phillips v. Blair & Martin (1801) 4 Paton, Scotch Apeal Cases 256 ; Mannan, The Sale of Goods Act, 223.
Levy v. cox 1848; ; Mannan, The Sale of Goods Act,229
12 - .
13 -Reuter v. Sala (1879) , ; Mannan, The Sale of Goods Act,233.
 Delivery to carrier: According
to sec. 39
Where the seller is required to send the goods to the buyer, delivery of
the goods to carried is deemed to be a delivery of goods to the buyer. For
Example: Cooke v. Ludlow, (1806)  Goods delivered at a distinct place:
According to Sec. 40
Where the seller of goods agrees to deliver the goods at his own rest other
than they are sold, the buyer shall take risk of any deterioration in good
incident to the transit.
For Example: Bull v. Robinson (1854)
 Examining the goods by the buyer:
According to Sec. 41.
“Where the seller delivers the goods to the buyer, he is bound to give a
reasonable opportunity to the buyer to examine the goods for the purpose of
ascertaining whether they are accordance with the contract. For Example:
Hilbutt v. Hikson  Acceptance of delivery by buyer:
According to Sec. 42
The buyer is deemed to have accepted the goods in either of the following
ways.
(i) When he intimates to the seller that he has accepted the goods. (ii)
When he does any act in relation to the good which is inconsistent with the
ownership of the seller.
(iii) When, after laps of reasonable time, he retains the goods without
intimating, the seller that he has rejected them.
 Buyer not bound to return rejected goods:
According to sec 43.
Where goods are delivered to the buyer and he refuses to accept them,
having the right to do so, he is not bound to return them to the seller. He
should inform the seller about his rejection.
Case law:
It was held that:
As per provision of section 43 of the Act, when a buyer properly rejects the goods, it is
not his duty to send them back to the seller and it is enough for him to give clear notice that
they are not accepted, and then they are at the seller's risk; he is not bound to put himself to
the expense and trouble of returning the goods, and it is the seller's business to take away
the goods if he is so minded. ''14
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14 - In Calicut Engineering Works (P) Ltd. Versus Batliboi Ltd 2007(1) ICC 573
 Liability in case of refusing to take delivery of goods:
According to Sec. 44.
When the seller is ready to deliver the goods and requests the buyer to
take delivery, and the buyer does not take delivery of the goods within
reasonable time, the buyer is liable to the seller for any loss arising on
account of refusing to take delivery.
For example: Hardy & Co v Hillerns and Fowler[1923]

Conclusion:
To conclusion it can be said that, delivery is voluntary transfer of possession
from one person to another. Seller should deliver the goods to the buyer
according to the rules provided in sales of goods act. Delivery may be made by
doing anything i. e. which the parties agree shall be treated as delivery or which
has the effect of putting the goods in the possession of the buyer.
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Bibliography:
• Farani, MR. Sale of Goods Act, 1930. Lahore : Nadeem Law Book
House.

• Mannan, M.A Pollock & Mulla The Sale of Goods Act with
Commentary. Lahore: PLD Publishers, 1996.

• Nyazee, Imran. Law of contract & Sale of Goods. Lahore: New fine
press, 2014.

• Sarah, Abraham, Anju. Duties of seller and buyer under the sale of goods
act. Symbiosis International University: 2011.
https://www.scribd.com/doc/80635998/DUTIES-OF-SELLER-
ANDBUYER

• "Delivery of Goods | Meaning | Modes of delivery", accessed Dec 17,

2017 . https://accountlearning.com/delivery-of-goods-meaning-modes-
ofdelivery/

• "Delivery", accessed Dec 17, 2017.

http://legaldictionary.thefreedictionary.com/delivery

• Accessed Dec 17,2017.

http://www.cs.xu.edu/~osborn/main/lawSchool/contractsHtml/bottomScr
eens/Briefs/Morton%20v.%20Lamb.htm