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Contract of Sales and Goods

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In this presentation, we will help you to understand the essentials of sales contract; difference among sales and agreement, future goods, contingent goods etc. We will also talk about various terminologies that include price, conditions, warranty and approval for sale. We will also discuss various acts and rights on sales, goods, stoppage, transits.
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Published in: Education, Business, Real Estate

Contract of Sales and Goods

  1. 1. CONTRACTS OF SALE OF GOODS
  2. 2. i-There must be two partiesii-The object must be transfer of ‘ property’iii-The subject matter of the contract of salemust be ‘ Goods’iv-Consideration for sale of goods must be ‘money’v-A contract may be in writing or word ofmouth or partly bothvi-Includes actual sale and agreement to
  3. 3. i-Transfer of propertyii-Risk of Lossiii-Nature of contractiv-Consequences of breachv-Right to resellvi-Insolvency of buyervii-Insolvency of sellerviii-Nature of rights
  4. 4. 1-Ownership of goods is transferred fromseller to buyer2-The buyer may use the goods as he likes3-There is no return of goods ,unless thereis a breach4-The consideration is the price5-Any charges to be paid either way doesnot arise
  5. 5. 1-There is transfer of possession ,notownership2-A bailee can use the goods only accordingto the directions of the bailor3-The goods are retuned after theaccomplishment of purpose4-The consideration is an undertaking5-The bailor has to repay the charges whichthe bailee has incurred.
  6. 6. 1-Transfer of property in the goods2-Position of buyer3-Insolvency of buyer4-Passing of the title of the buyer5-Sales Tax6-Nature of the contract7-Termination of contract8-Instalments paid9- Governing act
  7. 7. 1- Possession or Acquisition2-Certainity3-Control over factors of Production
  8. 8. Section 2(10) of the Act defines ‘ price’ asthe ‘ money consideration for a sale ofgoods’Mode of Fixing priceEarnest Money or depositStipulation as time
  9. 9. 1- Bill of Lading2-Dock Warrant3-Warehouse keeper’s certificate4-Railway receipt5-Delivery Order
  10. 10. 1-Term regarding goods forming part of thecontract of sale2-Essential to the main purpose of sale3-The breach of condition gives theaggrieved party the right to treat the contractas repudiated, and also entitles him to claimdamages4-If contract of sale is broken ,the aggrievedparty can treat the contract as repudiatedand reject the goods
  11. 11. 1-It is stipulation of term regarding goodsforming part of the contract of sale2-A term which is not essential to the mainpurpose of the contract3-Gives the aggrieved party only the right tosue for damages
  12. 12. 1-Relation to main purpose2-Rights of aggrieved party3-Treating condition as warranty4-Legal effects of breach5-Discharge on breach
  13. 13. 1-Relation to main purpose2-Rights of Aggrieved party3-Treating condition as ‘ Warranty’4-Legal effects of breach5-Discharge on breach
  14. 14. i- Conditions as to Titleii-Condition in case of sale by descriptioniii-Condition in case of sale by sampleiv-Condition in case of sale by descriptionand samplev-Condition as to quality or fitnessvi-Condition as to wholesomenessvii-Condition implied by custom
  15. 15. i-Warranties as to quit possessionii-Warranty of freedom from encumbrancesiii-Warranty as to quality or fitness for aparticular purposeiv-Disclosures of dangerous nature of goods
  16. 16. 1- Conditions as the title2-Sale by Description3- Sale by Sample4- Sale by sample as well as by description5-Conditions as to fitness or quality6-Condition as to merchantability7-Condition as to wholesome8-Condition implied by custom or usage oftrade
  17. 17. 1-Quiet possession2-Freedom from encumbrance3-Disclosure of dangerous nature of goods
  18. 18. Let the Buyer aware –A buyer purchasesthe goods at his own risk provided the selleris acting within the LawSubject to the provisions of this Act and anyother law for the time being in force ,there isno implied warranty or conditions as thequality or fitness for any particular purposeof goods supplied under a contract of sale
  19. 19. 1-Conditions as to quality of fitness forbuyer’s purpose2-Conditions as to merchantability3-Conditions as to wholesomeness4-Conditions implied by customs5-Sale under a patent or trade name6-Consent obtained by fraud
  20. 20. The performance of the respective duties ofthe seller and the buyer as per the terms ofthe contracti-Seller’s duty to deliver the goodsii-Buyer’s duty to accept the goods and paythe price
  21. 21. ‘ Delivery’ means voluntary transfer ofpossession from one person to anotherMay be - Actual-Symbolic-Constructive
  22. 22. 1- Mode of Delivery2- Delivery and payment are concurrentconditions3-Effect of part delivery4-Buyer to apply for delivery5-Place of delivery6-Time of delivery7-Mannaer of delivery8-Expenses of delivery
  23. 23. 9- Delivery of wrong quantity10-Instalment deliveries11-Delivery to carrier or wharfinger12-Goods delivered at a distant place13-Examining the goods on delivery14-When acceptance is complete ondelivery15-Liability of buyer for neglecting orrefusing delivery of goods
  24. 24. 1- Risk follows ownership2-Owner to take action against third parties3- Insolvency of the seller or the buyer4-Seller’s right to sue for price
  25. 25. 1- Goods must be ascertained2-Intention of the partiesPassing of property is dependent on theterms of contract. Parties to such contractshave evolved definite models for carriage ofgoods
  26. 26. 1- Passing of property at the time of contract2-Passing of property delayed beyond thedate of contract i-Goods not in a deliverable state ii-When the price of goods is to beascertained
  27. 27. i-When he signifies his approval to the sellerii-When he does any other act adopting thetransactioniii-If he does not signify his approval to theseller but retain the goods without givingnotice of rejection , beyond the time fixed forthe return of goods
  28. 28. 1- Estoppel2-Sale by a Mercantile Agent3-Sale by one of several joint owners4-Sale by a person in possession of goodsunder a voidable contract5-Sale by seller in possession after sale6-Sale by unpaid seller
  29. 29. 1- Sale by finder of lost goods2-Sale by Pawnee pledgee3- Sale by official assignee4-Sale by any liquidator of a company5-Execution sales6- Sale by Executors and Administrators7-Purchase in Market Overt8-Under the negotiable Instruments act
  30. 30. 1-Have delivery of goods2-Right to reject the goods3- The buyer of goods is not bound toaccept the delivery of goods in installments4-Right to notice of Insurance5-Right to examine the goods delivered6-Right to sue for breach of contract
  31. 31. 1-To take delivery of, and pay for goods2-To apply for delivery3-To demand delivery at a reasonable hour4-To take risk of deterioration5-Liability of buyer for neglecting or refusingdelivery of goods6-Duty to accept installment delivery andpay for it
  32. 32. 7-Duty to intimate the seller where herejects the goods8-Duty to pay damages for non-acceptance9-Deliver the goods to carrier or wharfinger10-Examine the goods delivered11-Acceptance of the goods delivered12-Liability of buyer for refusing delivery
  33. 33. 1- Suit for price2-Damages for non-acceptance3-Damages for breach of contract4-Interest5-Special damages
  34. 34. 1- Damages for non-delivery2-Specific performance3-Remedy for breach of Warranty4-Damages for breach of contract5-Interest6- Special damages
  35. 35. 1- When the whole of the price has not beenpaid or tendered2-When a bill of exchange or othernegotiable instrument has been received asconditional payment and conditions has notbeen fulfilled by reason of the dishonor ofthe instrument or otherwise
  36. 36. 1-When the property in the goods haspassed i-Right of Lien ii-Right of stoppage in transit iii-Right of resale2-When the property in the goods hasnot passed i-Right of withholding delivery ii-Right of Lien iii-Right of stoppage in transit
  37. 37. i- Right to sue for price-When the propertyin the goods has passed to the buyer andthe buyer refuses to payii-Right to sue for damages-Where thebuyer wrongfully neglects or refuses toaccept and pay for goodsiii-Right to sue for interest-the court mayaward interest as such rate as it thinks fit
  38. 38. i- Unpaid seller’s Lien-ii-Stoppage in transitiii-Right of resaleiv-Right of withholding delivery
  39. 39. i-No stipulation as to credit- The unpaidseller has a lien where the goods have beensold without any stipulationii-Sale on credit-the unpaid seller has a lienwhere the goods have been sold on creditbut the term of credit has expirediii-Insolvency of buyer-The unpaid sellerhas a lien where the buyer becomesinsolvent
  40. 40. i-Delivery to carrier-The unpaid sellerloses his lien when he delivers the goods tothe carrier for the purpose of transmission tothe buyerii-Lawful possession by buyer-The unpaidseller loses his lien where the buyer or hisagent lawfully obtains possession of goodsiii-Waiver-The unpaid seller loses his lien,when he waves his lien expressly
  41. 41. i-Goods care deemed to be in the course oftransitii-If the buyer or his agent in that behalfobtains delivery of the goods before theirarrival at the destinationiii-The Carrier or bailee acknowledges to thebuyer that he holds goodsiv-If the goods are rejected by buyer and thecarrier is in possession of goods
  42. 42. v-When the goods are delivered to a shipchartered by the buyer ,whether they are inpossession of the master as a carriervi-Where the carrier wrongfully, refuse todeliver the goods to the buyeragent in thatbehalf, the transit is deemed to be at an endvii-Where the part delivery of the goods hasbeen made to the buyer agent in thatbehalf ,the remainder of the goods may bestopped in transit
  43. 43. 1- Nature of right2-Possession of goods3-Commencement and end4-Insolvency of the buyer5-Mode of exercising
  44. 44. i- When the goods are of perishable nature, the unpaid seller may resell the goodswithout any notice to the buyer.When the unpaid seller has exercised rightof Lien , he has to give notice to the buyerfor his intention to resell
  45. 45. 1- Suit for price2-Suit for damages for non-acceptance3-Repudition of contract before due date4-Suit for interest
  46. 46. A sale by auction is a public sale wheredifferent intending buyers try to outbid eachother. The goods are ultimately sold to thehighest bidder. The auctioneer whoconducts the auction is an agent of thesellerThe sale of Goods Act lays down variousrules in the cases of a sale by auction
  47. 47. This a contract for sale of goods to bedelivered free on board a ship. The letterF.O.B. stands for ‘ free on board’ and wordF.O.R. stands for Free on RailThere are various terms such as F.O.B,F.O.R. ,C.I.F. , and C & F etc
  48. 48. i-To load the sold goods safely on the shipnamed by the buyerii-The meet the expenses of Loading thegoodsiii-To enter into contract with the shippingcompany for the transportation of goods andobtain a bill of Ladingiv-To deliver the bill of Lading to the buyer
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