In the absence of a contract to the contrary, to whom may a court award interest on the amount of the…
The court may award interest at a rate it thinks fit. For the seller, it runs from tender of the goods or from when the price was payable. For the buyer, it runs from…
Choose your answer
In the absence of a contract to the contrary, to whom may a court award interest on the amount of the price under section 61(2) of the Sale of Goods Act, 1930?
Answer and explanation
Correct answer D
The court may award interest at a rate it thinks fit. For the seller, it runs from tender of the goods or from when the price was payable. For the buyer, it runs from payment of the price. Section 61(1) separately preserves rights to recover interest or special damages where otherwise recoverable by law.
Option feedback
Option A
A seller suing for the price can receive interest, but section 61(2)(b) also covers a qualifying suit by the buyer.
Option B
A buyer can receive interest in a qualifying refund suit, but section 61(2)(a) also covers a suit for the price.
Option C
The court's power applies in the absence of a contract to the contrary. Express agreement is unnecessary.
Option D
Section 61(2) identifies the seller's price suit and the buyer's refund suit on the seller's breach as the two qualifying settings.
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