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Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
Sales of goods act,1930
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Sales of goods act,1930

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Sales of goods act,1930,,,Business Laws, MBA, Sem 2nd, MTU

Sales of goods act,1930,,,Business Laws, MBA, Sem 2nd, MTU

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  • 1. Dr. Akansha Jain email:dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 2. •Sales of goods Act came into force on 1st July, 1930.•Sale of Goods Act is one of very old mercantile law.•Sale of Goods is one of the special types of Contract.•The Sale of Goods Act is complimentary to ContractAct.•Basic requirements of contract i.e. offer andacceptance, legally enforceable agreement, mutualconsent, parties competent to contract; freeconsent, lawful object, consideration etc. apply tocontract of Sale of Goods also. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 3.  A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another. [section 4(1)]. A contract of sale may be absolute or conditional. [section 4(2)]. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 4.  Two parties: There must be 2 distinct parties i.e., a buyer and a seller, to effect a contract of sale and they must be competent to contract. Goods: There must be some goods the property in which is or is to be transferred from the seller to the buyer. Price: The consideration for the contract of sale, called price, must be money. Transfer of general property: There must be a transfer of general property as distinguished from special property in goods from the seller to the buyer. If A owns certain goods, he has general property in the goods. If he pledges them with B, B has special property in the goods. Essential elements of a valid contract: All the essential elements of a valid contract must be present in the contract of sale. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 5.  When property is transferred from seller to buyer at the time of formation of contract, an absolute sale occurs. When property in the goods is to be transferred at some future date and not at the time of contract, the contract of sale is termed as an agreement to sell. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 6. Sale Agreement To Sale1) The Property in the goods 1) Since property in the goods passes to the buyer and does not pass to buyer, the along therewith the risk. risk also does not pass to2) It is an executed contract. him.3) The seller can sue the buyer 2) It is an executory contract. for the price of the goods 3) The aggrieved party can sue because of the passage of the for damages only and not for property therein to buyer. the price, unless the price4) A subsequent loss or was payable at a stated date. destruction of goods is 4) Such loss or destruction is liability of buyer. the liability of the seller.5) Breach on the part of the sellers gives the buyer double 5) The seller, being still the remedy; a suit for damages owner of the goods, may against the seller and a dispose of them as he proprietary remedy of likes, and the buyer’s remedy recovering the goods from would be to file a suit for third parties who bought damages only. Dr. Akansha Jain email: them. dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 7. Contract can be made in any of the following modes: There may be immediate delivery of goods. There may be immediate payment of price, but it may be agreed that the delivery is to be made at some future date. There may be immediate delivery of goods and immediate payment of price. It may be agreed that delivery or payment or both are to be made in installments. It may be agreed that delivery or payment or both are to be made at some future date. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 8. Condition: It is a stipulation essential tomain purpose of the contract, the breach ofwhich gives right to the repudiate thecontract and to claim damages.Warranty: It is a stipulation collateral tomain purpose of the contract, the breach ofwhich gives rise to claim for damages butnot the right to reject the goods and treatcontract as repudiated. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 9. Condition Warranty1. A condition is essential to 1. It is only collateral to main the main purpose of the purpose of contract. contract. 2. The aggrieved party can2. The aggrieved party can claim only the damages in repudiate the contract or case of breach of claim damages or both in warranty. case of breach of condition. 3. A breach of warranty3. A breach of condition may cannot be treated as be treated as breach of breach of condition. warranty. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 10.  A contract of sale can be performed by the two ways. 1. Property in goods or ownership of goods and 2. Possession of the goods. A person may have possession of goods but he may not be the owner e.g. a servant, agent etc. On the other hand, a person may be the owner but may not have the possession of goods. In the contract of sale, when the ownership of goods is transferred to the buyer from the sellers, he becomes the owner of the goods. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 11.  As per general rule, the transfer of ownership depends on the intention of the parties to the contract. But sometimes the intention of the parties cannot be ascertained from the contract. In that case, the intention of the parties is ascertained on the basis of provisions laid down in Sections 18 to 24 of the Sale of Goods Act. These provisions are discussed as under— 1) Incase of the unascertained goods (Section 18 and 23); 2) Incase of specific goods (Section 20 to 22) and 3) Incase of sale on approval (Section 24) Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 12.  TRANSFER OF OWNERSHIP IN CASE OF UNASCERTAINED GOODS: a) Unascertained Goods: Under Section 18 of the Sale of Goods Act, the unascertained goods are not transferred unless the goods are ascertained. Theses goods are not specifically identified at the time of contract of sale. It is identified and is set apart for the purpose of delivering to the buyer. b) The Intention of the parties: Under section 19 the transfer of ownership depends upon the intention of both the parties and ownership transfer from the seller to the buyer at the time fixed by the parties. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 13.  TRANSFER OF OWNERSHIP IN CASE OF SPECIFIC GOODS: a) Specific goods: - Under Section 20, the goods are deliverable state and the ownership transferred from the seller to the buyer at the time of making of contract of sale. b) When seller has something to do:- Under Section 21 in case of sale of specific goods if the goods are not in a deliverable state and the seller has to do something to put the goods in a deliverable state, the ownership does not passes until such thing is done and the buyer has notice thereof. c) When goods are to be measured, tested: Under Section 22, in case of a contract of sale of specific goods and the goods are in a deliverable state but, the seller has to weight, measure, test or perform some other act or thing with reference to the goods for ascertaining the price, the ownership does not pass until such act or thing is done and the buyer has noticed thereof. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 14. TRANSFER OF OWNERSHIP IN CASE OF SALE ON APPROVAL: In case of sale on approval, the ownership to the buyer is transferred in three ways: · When the goods are accepted by the buyer, or · When the buyer performs some acts which indicates implied acceptance of the buyer, or · The buyer fails to return the goods within a reasonable time Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 15. Caveat emptor is LATINword for "Let the buyer beware Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 16. It is NOT part of the sellers duty topoint out the defects of the goodswhich he offers for sale, rather itis the duty of the buyer to satisfyhimself about the quality as wellas the suitability of goods. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 17. EXCEPTIONS TO THE DOCTRINE OF CAVEAT EMPTOR: 1) In case of misrepresentation by seller. 2) In case of concealment of defect. 3) In case of sale by description. 4) In case of sale by sample. 5) In case of sale by description and sample. 6) Fitness for a particular purpose: When the buyer has disclosed the purpose for which the goods are required and relied upon the sellers skill or judgment of the seller. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 18. The seller of goods is deemed to be an unpaid seller if :a) When the whole of the price has not been paid orb) When a negotiable instrument is dishonoured. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 19. 1) Right against the goods: a) if the property has passed to buyer: Right of lien Right of stoppage in transit Right of resale. b) if the property in the goods has NOT passed:• Withholding delivery• Stoppage in transit• Resale Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 20. *Right to sue for price*Right to sue for damages*Rights to repudiation of contract*Right to sue for interest Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 21.  A public sale where intending buyers assemble at one place and offer the price at which they are ready to buy the goods. The offer of the price is known as ―bid‖ and the person making the bid is ―bidder‖. The person appointed to sell is called ―auctioneer‖. The relationship between auctioneer and the owner of the goods is that of the principle and agent. The goods are sold to the highest bidder. An advertisement to sell the goods by auction is simply an invitation to the public to make offers and NOT an offer itself. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 22. RULES REGARDING SALE BY AUCTION: 1) Each lot is deemed to be the subject of a separate contract. 2) Sale is complete on the fall of the hammer. 3) Before the completion, bidder may with draw his bid. 4) A right to bid may be reserved expressly and seller can also bid. 5) If a sale is notified to be subject to reserve price then auctioneer has NO power to sell, below the reserve price. 6) Pretended bidding to raise price, can be voidable. Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in
  • 23.  1. Seller’s suits ◦ i) Suit for price (Sec. 55) ◦ ii) Suit for damages for non-acceptance of the goods (Sec. 56) ◦ iii) Suit for damages for repudiation of contract by the buyer before due date (Sec. 60) ◦ iv) Suit for interest [Sec. 61 (2)(a)] 2. Buyer’s suits ◦ i) Suit for damages for non-delivery of goods (Sec. 57) ◦ ii) Suit for specific performance (Sec. 58) ◦ iii) Suit for breach of warrenty(Sec.59) ◦ iv) Suit for damages for repudiation of contract by the seller before due date (Sec. 60) ◦ v) Suit for interest [Sec. 61 (2)(b)] Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in

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