Section 103 of the Indian Contract Act, 1872, deals with the price of goods in a contract of sale. According to this section, the price of goods may be fixed by the contract or may be left to be fixed in the manner thereby agreed, or may be determined by the course of dealing between the parties. If the price is not determined in accordance with the foregoing provisions, the buyer must pay the seller the price at which they were reasonably worth at the time of the contract. However, if the goods were bought by description, the price at which they were reasonably worth at the time of the contract shall be the price at which they were reasonably worth when the buyer first became aware of the breach of contract. The price may be paid or tendered at the time and place of delivery of the goods, or at the time and place agreed upon by the parties, or, if no time or place is fixed, then before the buyer takes delivery of the goods.
Indian Contract Act, 1872
Section 103
Price
⚡ Quick Answer Reference: Section 103 Contract Act
- Provision: Section 103 of Contract Act
- Act: Indian Contract Act, 1872
- Classification: contract
- Jurisdiction: India
- Summary: This section explains how the price of goods is determined in a contract of sale. The price can be fixed by the contract, left to be fixed later, or determined by the parties' course of dealing. If the price is not determined, the buyer must pay the seller the reasonable market value of the goods at the time of the contract. However, if the goods were bought by description, the buyer must pay the reasonable market value at the time they became aware of the breach.
What does Section 103 of Contract Act say?
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What does Section 103 of Contract Act mean?
Plain English Explanation
This section explains how the price of goods is determined in a contract of sale. The price can be fixed by the contract, left to be fixed later, or determined by the parties' course of dealing. If the price is not determined, the buyer must pay the seller the reasonable market value of the goods at the time of the contract. However, if the goods were bought by description, the buyer must pay the reasonable market value at the time they became aware of the breach.
Practical Interpretation
In practice, this section means that the parties to a contract of sale must agree on the price of the goods. If they fail to do so, the buyer must pay the seller the reasonable market value of the goods. This section helps to clarify the uncertainty surrounding the price of goods in a contract of sale.
Core Legal Purpose
The core purpose of this section is to provide a clear and fair method for determining the price of goods in a contract of sale. It ensures that the buyer and seller have a clear understanding of the price and that the buyer pays the seller the reasonable market value of the goods.
- •The price of goods may be fixed by the contract.
- •The price of goods may be left to be fixed in the manner thereby agreed.
- •The price of goods may be determined by the course of dealing between the parties.
- •If the price is not determined, the buyer must pay the seller the reasonable market value of the goods at the time of the contract.
Practical Example of Section 103 Contract Act
Rajesh and Priya entered into a contract of sale for a car. The contract did not specify the price of the car. However, the parties had a course of dealing where they would agree on the price of the car at the time of delivery. In this case, the price of the car would be determined by the course of dealing between the parties. If the parties failed to agree on the price, Rajesh would have to pay Priya the reasonable market value of the car at the time of the contract.
Frequently Asked Questions about Section 103 Contract Act
Q: What is the punishment or consequence under Section 103 of Indian Contract Act, 1872?
This section is a procedural provision and does not prescribe a penal punishment. It only outlines the method for determining the price of goods in a contract of sale.
Q: Does this section apply to private individuals or public entities?
This section applies to all contracts of sale, including those between private individuals and public entities.
Q: Is an offence under this section bailable or cognizable?
This section is a procedural provision and does not prescribe a penal punishment. Therefore, it is neither bailable nor cognizable.
Common Questions about Section 103 Contract Act
What is Section 103 of Contract Act?
Section 103 of the Indian Contract Act, 1872 (Contract Act) defines and regulates "Price". In plain terms: This section explains how the price of goods is determined in a contract of sale. The price can be fixed by the contract, left to be fixed later, or determined by the parties' course of dealing. If the price is not determined, the buyer must pay the seller the reasonable market value of the goods at the time of the contract. However, if the goods were bought by description, the buyer must pay the reasonable market value at the time they became aware of the breach.
What are the elements of Section 103 of Contract Act?
The essential elements of Section 103 of Contract Act are: The price of goods may be fixed by the contract.; The price of goods may be left to be fixed in the manner thereby agreed.; The price of goods may be determined by the course of dealing between the parties..
Landmark Judgments under Section 103 Contract Act
Patnahcucisdb94 High Court (10 8)
Patnahcucisdb94 High Court (10 8)
Patnahcucisdb94 High Court (10 8)
Patnahcucisdb94 High Court (10 8)
Patnahcucisdb94 High Court (10 8)
Sections commonly cited alongside Section 103
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