CHAPTER II FORMATION OF THE CONTRACT · The price

Section 10: Agreement to sell at valuation

The Sale of Goods Act, 1930

(1) Where there is an agreement to sell goods on the terms that the price is to be fixed by the valuation of a third party and such third party cannot or does not make such valuation, the agreement is thereby avoided:

Provided that, if the goods or any part thereof have been delivered to, and appropriated by, the buyer, he shall pay a reasonable price therefor.

(2) Where such third party is prevented from making the valuation by the fault of the seller or buyer, the party not in fault may maintain a suit for damages against the party in fault.

Questions on this section

1 question in 5 of our papers cite Section 10. Try these from the free papers:

1. A agrees to sell goods to B at a price to be fixed by the valuation of V, a third party. Consider the following statements under Section 10 of the Sale of Goods Act, 1930: 1. If V does not make the valuation, the agreement is avoided. 2. If part of the goods has already been delivered to and appropriated by B, B must pay a reasonable price for that part. 3. If V is prevented from making the valuation by the fault of A, B may sue A for damages. Which of the statements given above is/are correct?

Practise questions on Partnership and Sale of Goods Acts