Section 77 The Indian Contract Act, 1872
Section 77 of the Indian Contract Act, 1872 (originally part of the chapter on Contracts relating to the Sale of Goods) has been repealed from the Contract Act and is now part of the Sale of Goods Act, 1930.
However, here is what Section 77 stated before it was moved:
📜 Section 77 — Buyer’s liability for neglecting or refusing delivery of goods
“Where the seller is ready and willing to deliver the goods, and requests the buyer to take delivery, and the buyer does not, within a reasonable time after such request, take delivery of the goods, he is liable to the seller for any loss occasioned by his neglect or refusal to take delivery, and also for a reasonable charge for the care and custody of the goods.”
🔍 Explanation:
This section lays down the buyer’s responsibility in a contract of sale:
If the seller is ready and offers to deliver the goods,
And the buyer neglects or refuses to take delivery within a reasonable time,
Then the buyer is liable:
For any loss suffered by the seller due to this delay,
And for reasonable expenses incurred for keeping the goods safe.
📌 Example:
A agrees to sell 500 sacks of wheat to B. A informs B to collect the sacks from the warehouse. B delays it for a week, during which rodents damage some sacks.
→ B is liable for the loss caused by the delay and storage costs for the wheat.
⚖️ Current Legal Position:
This provision is now found in the Sale of Goods Act, 1930, specifically Section 44.
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