I am manufacturer of small electrical transformers. One Trader bought transformers from me and supplied to his customer. Customer rejected the transformers. Now the trader, who bought transformers from me, demanding refund of money, without returning my transformers. Am I liable to return money without receiving back goods given by me? Kindly mention law and rule for rejecting such a claim.
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You should agree to refund money received by you provided that transformers are returned to you
Send an email to that effect to the trader
There must be clause in the contract that any complaint as to quality has to be made with stipulated period . If any complaint is made and goods returned amount paid by Buyer would be returned
Unless there was a contract between you and the trader wherein it has been mentioned that you will be liable to refund the money to him if his customer rejects the transformers you are not liable to refund him. Section 12 of Sale of Goods Act comes into play here.
You insist on return of the items supplied or else you can ask him to aproach legally to this issue.
You are not legally bound for this oral claim
