Breach of a sales contract

1. Remedies

a. REMEDIES OF SELLERS

Seller’s remedies:1) Action for the price of goods;2) Action for damages; or3) Action for rescission.

Action for the price of goods

⦁ If ownership has passed to the buyer. Where, under a contract of sale, the ownership of the goods has passed to the buyer and he wrongfully neglects or refuses to pay for the goods according to the terms of the contract of sale, the seller may maintain an action against him for the price of the goods. (Article 1595, Ibid.)

⦁ If ownership has not passed. Where, under a contract of sale, the price is payable on a certain day, irrespective of delivery or of transfer of title and the buyer wrongfully neglects or refuses to pay such price, the seller may maintain an action for the price although the ownership in the goods has not passed. But it shall be a defense to such an action that the seller at any time before the judgment in such action has manifested an inability to perform the contract of sale on his part or an intention not to perform it. (Paragraph 2, Article 1595, Ibid.)

⦁ If goods cannot readily be sold for a reasonable price – even if ownership has passed. Although the ownership in the goods has not passed, if they cannot readily be resold for a reasonable price, and if the provisions of Article 1596, fourth paragraph, are not applicable, the seller may offer to deliver the goods to the buyer, and, if the buyer refuses to receive them, may notify the buyer that the goods are thereaft...