PPT on "The Contract of Sale of Goods & Hire-Purchase" for BBA & B.Com 1st year students, CA, CPT, CS & CMA Foundation. Business Law PPT by Sandeep Sharma. Meaning with suitable example & explanation.

1. SALE OF GOODS &
HIRE PURCHASE
Chapter – 19
Unit – III
PPT by Sandeep Sharma

2. SALE OF GOODS ACT
• Sale of goods act, separated in 1930 from Indian Contract Act.
• The act came into force on 1st July 1930.
• It extends to the whole of India, except the State of J&K.
Definitions:-
1) Buyer: a person who buys or agrees to buy goods,
2) Delivery: voluntary transfer of possession from one person to another,

3. SALE OF GOODS ACT
3) Goods: means every kind of ‘Movable property’.
Includes Excludes
Growing crops
Standing timber
Grass
Old currency
Copyright, Patent, Trademark
Shares, Stock
Gas, Water
Money
Immovable goods
Actionable claim
(Unsecured Debt)

4. 1) Two Parties: seller & buyer. A husband & a wife can also be the
parties.
2) Goods
3) Price:
a. transfer goods without any consideration is a gift.
b. price paid other then money is not sale.
c. barter is also not sale.
ESSENTIALS: SALE OF GOODS ACT

5. 4) Transfer of property: seller must transfer the general property.
Eg:- Pledge, combines both general & special property.
a. general property – absolute ownership
b. special property – right to retain possession of goods
5) Free consent
6) Sell or agreement to sell
7) All essential agreements of contract.
ESSENTIALS: SALE OF GOODS ACT

6. DEFINITION
1) Sale :
According to Blackstone, “Sale is a transmutation of property from
one man to another in consideration of some price”.
2) Agreement to sell:
Where the transfer of the goods is to take place at the future time.
2) Hire purchase:
Where goods is given on hire & hirer has an option either to return
or to buy it by paying all the installments of hire.

7. 1) Agreement must be in writing & signed by all the parties.
2) Goods given on hire.
3) The hirer has an option either to return the goods or to buy it.
4) The owner of the article agrees to sale it on payment of all the
installments.
5) If hirer defaults in payment, the owner has right to retain
possession of the goods.
ESSENTIALS: HIRE PURCHASE AGREEMENT

8. TYPES OF SALE OF GOODS
Goods
Contingent GoodsFuture GoodsExisting Goods
AscertainUnascertainSpecific

9. Existing Goods
Specific
Goods owned or possessed by the seller at the time of contract.
It is the exact identified existing
goods which becomes the subject
matter of contract of sale.

10. Unascertain The goods which are not identified (goods in
warehouse in bulk/in a lot) & agreed upon at the
time of contract of sale.
Ascertain These goods are used to denote the goods which is
ascertained (goods which are separated from the
group/bulk/lot) after formation of contract of sale.

11. Future Goods
It means the goods to be manufactured or produced by the seller
after making of the contract of sale.
Contingent Goods
It means the possession of the goods depends upon the happening or
non-happening of the event.

12. D/b Sale & Agreement to sell
Sale
 Executed contract.
Ownership transferred
immediately.
Transfer of goods at the same
time.
Right in rem (the whole
world).
Agreement to Sell
Executory contract.
Ownership takes place at a
future time.
Transfer of goods not at
the same time.
Right in personam (specific
person).

13. D/b Sale & Agreement to sell
Sale
Only existing goods
Risk of loss – (Buyer)
Right to resale not available
to seller.
If buyer becomes insolvent –
receiver can claim the goods.
Agreement to Sell
Goods are contingent.
Risk of loss – (Seller)
Right to resale, seller can
resale.
If buyer becomes insolvent
– seller is not bound to
deliver the goods.

14. D/b Sale & Hire-purchase
Sale
Ownership transferred
immediately.
Only one contract takes place.
Possession of goods may
remain with the seller.
Seller/buyer can’t terminate
the contract.
Hire-purchase
Ownership passes only after
he pays all the instalments of
hire.
Two contracts takes place.
Possession must pass on to
the hirer.
Hirer can terminate contract.

15. D/b Sale & Hire-purchase
Sale
Buyer is in the position of
owner.
Ownership can’t be regained
by the seller.
Buyer can transfer the title of
goods to the third party.
Hire-purchase
Hirer is in the position of
bailee.
Possession can be regained
by the owner from hirer.
hirer can’t transfer the title of
goods to the 3rd party.

16. 1) Bill of lading – a detailed list of cargo in the form of receipt
given by the captain of the ship.
2) Dock-warrant – a document which shows, the holder is
entitled to goods imported or warehoused in the docks.
3) Warehouse-keeper’s certificate
4) Railway receipt
5) Delivery order/warrant
DOCUMENT OF TITLE OF GOODS

17. 1) By the contract of sale – price may be fixed by contract itself.
2) Agreed between the parties – in accordance with a particular
formula.
3) Reasonable price – the buyer shall pay the seller a reasonable price.
4) By the course of dealings – the previous dealings may be the basis of
price determination.
5) By the government
6) By third party – price is to be fixed by the valuation of a 3rd party.
THE PRICE OF THE GOODS

18. END OF CHAPTER
PPT by Sandeep Sharma