Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
uni 2 good act.pptx
1. Goods Act 1930
21COM2T453: Business Regulatory Framework
Dr. Neerupa Chauhan
Asst. Professor
Kristu Jayanti College, Autonomous
(Reaccredited A++ Grade by NAAC with CGPA 3.78/4)
Bengaluru – 560077, India
2. DEFINITION
◦ Definitions as per Section II (s.2 Of Sale of Goods Act 1930) of the Act are as
follows:
A Contract of Sale is:
• an offer to buy for a price, or
• An offer to sell good for a price, and
• the acceptance of such offer.
◦ A Contract may provide for:
• the immediate delivery of the goods, or
• immediate payment of the price, or
• the immediate delivery of the goods and payment both or
• for the delivery or payment by installments or
• that the delivery or payment or both shall be postponed.
3. ◦ per the Section 5 sub-clause (2) - Subject to the provisions of any law
for the time being in force, a contract of sale may be made-
• in writing or
• by word of mouth, or
• partly in writing and partly by word of mouth or
• may be implied from the conduct of the parties.
5. ESSENTIAL ELEMENTS
• Two parties: A contract of sale is between two parties, where one party transfers goods to
another party.
• Goods: The subject of the contract must be goods. This is usually the most important
element in a contract of sale because if the goods are not described precisely, confusion could result.
• Transfer of ownership: Ownership of the goods must be moved from the seller to the
buyer, or there should be an agreement in which the transfer of ownership is made.
◦ • Price: The buyer in the contract must pay a price for the goods.
• A sales contract is a special type of contract. In order for it to be valid, it must contain
clauses about free consent and the competency of the signing parties.
• A sale and an agreement to sell are part of a sales contract.
• No formalities. There is no particular form to define a valid contract of sale. A contract
of sale can be made simply by offering and accepting.
6. Formation of contract
◦ Section 4 - sales and the agreement to sell – INCLUDES BOTH
◦ The contract of sale is known as a SALE when the property in the products is
transferred from the seller to the buyer under it, thereby transferring ownership from the
seller to the buyer. A sale can also be called an executed contract of sale.
◦ A contract is referred to as an AGREEMENT TO SELL when the transfer of property in
the goods is supposed to happen at a future date or is dependent on the fulfilment of a
subsequent condition. An agreement to sell may also be called an executory contract of
sale.
◦ ABSOLUTE & CONDITIONAL CONTRACTS OF SALE
7. CONDITION
◦ foundation of the entire contract
◦ breach of the conditions gives the right to the aggrieved party
to treat the contract as REPUDIATED
Kinds of conditions
◦ EXPRESSED CONDITION
◦ something must be done or exist in the contract.
◦ The conditions which are imperative to the functioning of the
contract and are inserted into the contract at the will of both
the parties.
8. ◦ IMPLIED CONDITION
◦ Implied condition as to title
◦ In every contract of sale, the basic yet essential implied conditions on the part of the
seller are that-
◦ 1. Firstly, he has the title to sell the goods.
◦ 2. Secondly, in case of an agreement to sell, he will have the right to sell the
goods at the time of performing the contract.
◦ Consequently, if the seller has no title to sell the given goods, the buyer may refuse or
reject those goods. He is also entitled to recover the full price paid by him
◦ • Implied condition as to the description
◦ Section 15 of the Act, In the contract of sale, there is an implied condition that the
goods should be in conformity with the description. The buyer has the option to either
accept or reject the goods which do not conform with the description of the good.
9. ◦ Implied condition as to sale by sample
In the light of Section 17 of the Act, in a contract of sale by sample, there may be
following implied conditions:
◦ 1. That the actual products would correspond with the sample with
respect to the quality, size, colour
◦ 2. That the buyer gets a reasonable opportunity to compare the goods
with the sample.
◦ 3. Further, the goods are free from any defect rendering them
unmerchantable
◦ Implied condition as to Sale by sample as well as a description
◦ Referring to Section 15 of the Sale of Goods Act, 1930, in a sale by
sample as well as description, the goods supplied must be in
accordance with both the sample as well as the description
