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Under the Sale of Goods Act, 1930, where the seller expressly reserves a right of re-sale in case the…

Section 54(4) provides that where the seller expressly reserves a right of re-sale on default and re-sells, "the original contract of sale is thereby rescinded, but without…

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Under the Sale of Goods Act, 1930, where the seller expressly reserves a right of re-sale in case the buyer makes default, and on default re-sells the goods, the original contract of sale is rescinded. Such rescission is without prejudice to:

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Section 54(4) provides that where the seller expressly reserves a right of re-sale on default and re-sells, "the original contract of sale is thereby rescinded, but without prejudice to any claim which the seller may have for damages". Because the contract is rescinded, the buyer keeps no title, no right to delivery and no claim to the re-sale profit.

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