Sales of good act - Commercial Law
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Sales of good act - Commercial Law

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Sales of good act - Commercial Law..

Sales of good act - Commercial Law..

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Sales of good act - Commercial Law Sales of good act - Commercial Law Presentation Transcript

  • Sales of Goods Act 1930 Dinesh Kumar
  • Definition Section 4 (1) of the Sale of Goods Act,1930 define the term ‘Contract of Sale’ as – “A contract of sale of goods is a contract whereby the seller transfer or agrees to transfer the property in goods to the buyer for a price”.
  • Essential of contract of sale 1)There must be two parties. 2)The subject matter of contract must be goods. 3)Price 4)Transfer of goods. 5)Element of valid contract
  • Formation of contract Sale of agreement to sell: A contract of sale the property in the goods in transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell. An agreement to sell becomes a sale when the time exit or the conditions are fulfilled subject to which the property in the goods is to be transferred. A contract of sale may be absolute or conditional
  • Differences between sales and agreement to sell  Transfer of property: In a sale the property in the goods passes from the seller to the buyer immediately so that the seller is no more the owner of the goods sold. In an agreement to sell the transfer of property in the goods is to take place at a future time or subject to certain conditions to be fulfilled.  Types of goods: A sale can only be in case of existing and specific goods only. It is mostly in case of future and contingent goods.
  • Differences between sales and agreement to sell  Risk of loss: Risk of loss falls on the buyer even though they are in the possession of seller. Risk of loss is with seller even though goods are in the possession of buyer.  Rights to re-sell: Seller can sue for price in case of breach, possession may be with seller. Seller can only sue for damages though goods may be in the possession of the buyer.
  • Sales and hire-purchase agreement A hire purchase agreement is a contract whereby the owner of goods lets them on hire to another person called hirer or hire purchase on payment of rent to be paid in instalment and upon an agreement that when a certain number of such instalment is paid ,the property in the goods will pass to the hirer. Examples: A hirer a piano from B on agreement that A should pay Rs.500/- as rent. if A regularly pays the rent for 10 months then the piano becomes his property at the end of 10 months. Hire purchase agreement are governed by the Hire purchase Act,1972
  • Goods Goods Existing goods Future goods Contingent goods
  • Goods 1)Existing goods: These are the goods which are owned by seller at the time of sale. For example: A agrees to sell his horse to B, believe that it exist, when in fact the horse is dead, no contract is arise. The existing goods may be classified as….. • Specific goods : These are goods which are identified and agreed upon at the time a contract is made . For example : watch, dog, pen. • Ascertained goods : These are the goods which become identified subsequent to the formation of a contract of sale.
  • • Unascertained goods: Goods which are not specifically identified by the buyer, but are contracted on the basis of description Example : X has 10 horses. He promises to sell one of them but does not specify which horse he will sell. it is a contract of sale of “unascertained goods”. 2)Future goods : Those goods which a seller does not possess or own at the time of the contract.it is to be manufactured or produced or acquired by the seller after making the contract of sale. Examples: C agrees to buy the entire production of cotton that would yield in D’s farm , at the rate of Rs.1000/- per quintal. This is an agreement of sale of future not in possession of the seller at the time of contract, they can become the subject matter of an agreement to sell only and not of sale.
  • 3)Contingent goods: Goods the acquisition of which by the seller upon a contingency which may or may not happen. Example: P contract to sell 50 pieces of particular article provided the ship which is bringing them reaches the port safely. This is an agreement for the sale of contingent goods.
  • Price • ‘Price’ in a contract of sale means the money consideration for sale of goods. It forms an essential part of the contract. • It must be expressed in money. • It is the consideration for the transfer or agreement to transfer the property in goods from the seller to buyer.
  • Condition and warranty A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to right to treat the contract as repudiated. A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.
  • Conclusion