This document defines key terms related to the sale of goods and outlines various concepts in the Sale of Goods Act. It defines goods, different types of goods (existing, specific, ascertained, unascertained, future), and discusses when a contract qualifies as a sale of goods. It also summarizes conditions and warranties implied in contracts, the transfer of property and title, the doctrine of caveat emptor, exceptions to this doctrine, and the rights of an unpaid seller including the right of lien, stoppage of goods, and resale.

1. A Presentation On
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2. DEFINITION
Goods means every kind of movable property
other than actionable claims and money; and
includes stock and shares, growing crops, grass
and things attached and forming part of lands
which are agreed to be served before sale or
under the contract of sale. Section 2(7).

3. • Existing goods- Section 6(1) These are the goods which are in
existence and are physically present in the seller’s
possession.
• Specific goods- Section 2(14) – These are the goods
identified and agreed upon at the time the contract is made.
• Ascertained goods- These are identified after the formation
of the contract.
• Unascertained goods- These are the goods which are not
specifically identified or agreed upon at the time of the
contract of sale.
• Future goods – Section 2(6) Goods which are to be
manufactured or produced or acquired by the seller after
making contract of sale.
• Contingent goods- Section 6(2).
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KINDS OF GOODS:

4. • A Contract only if the ownership of
goods is transferred from one
person to another immediately at
the time of formation of contract or
subsequent to formation of
contract;
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The Sale of Goods Act shall
apply to

5. 5
Bailment of goods;
Pledge of goods ;
Any contract relating to immovable property
Contract of work and skill
Sale of Goods Act shall not apply to

6. 6
1) Express – which are expressly provided in the
contract.
2) Implied- which the law implies into the contract
unless the parties stipulate to the contrary.
Types of conditions and warranties

7. 1. Condition as to title [sec.14(a)] - seller has the
right to sell.
2. Sale by description (sec.15)- goods shall
correspond with the description.
3. Condition as to quality or fitness [sec16(1)]
4. Condition as to merchantability [sec.16(2)]
5. Condition implied by custom- fitness for a
particular purpose may be annexed by the usage
of trade [sec.16(3)]
6. Sale by sample (sec.17)
7. Condition as to wholesomeness
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Implied Conditions

8. Implied Warranties
1. Warranty of quiet possession [sec.14(b)].
2. Warranty of freedom from encumbrances
[sec.14(c)].
3. Warranty as to quality or fitness by usage of trade
[sec16(4)].
4. Warranty to disclose dangerous nature of goods.
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9. Suit for damages for breach of
warranty
Where there is a breach of warranty, the buyer
is entitled to sue for damages if he had paid the
price to the seller. But if he has not paid the
price yet, he may ask the seller for a reasonable
reduction in the price. (Sec. 59)
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10. TRANSFER OF PROPERTY
• Goods must be ascertained
• Specific goods in a deliverable state
• Specific goods to be put in a deliverable state
• Specific goods in a deliverable state when the
seller has to do anything thereto in order to
ascertain price
• Sale of unascertained goods and
appropriation
• Goods sent on approval or “ on sale or return”
• Reservation of right of disposal
• Risk prima facie passes with the property
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11. TRANSFER OF TITLE
• The general rule “ no one can give that which one
has not got”
• Sale by person not the owner – “effect of estoppel”
• Sale by mercantile agent
• Sale by one of joint owners
• Sale by person in possession under voidable contract
• Seller in possession after sale
• Buyer in possession after sale
• Sale by an unpaid seller
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12. Doctrine of Caveat Emptor
[Sec 16]
The doctrine of caveat emptor is a fundamental principle
of law of sale of goods. It means ‘Caution Buyer’ i.e. ‘let
the buyer beware’. In other words, it is no part of the
seller’s duty to point out defects in his own goods. The
buyer must inspect the goods to find out if they will suit
his purpose e.g. certain pigs are sold ‘subject to all
faults’. These pigs being infected cause typhoid to the
other healthy pigs of the buyer. The rule of caveat
emptor would apply.

13. EXCEPTIONS TO THE DOCTRINE OF
CAVEAT EMPTOR
(i) Condition as to Quality or Fitness for Buyer’s
purpose
(ii) Where the seller makes a false representation or
obtains consent of the buyer by fraud
(iii) Condition as to Merchantability
(iv) Condition as to Wholesomeness
(v) Condition implied by the Custom or Trade Usage

14. The seller of goods is deemed to be unpaid (Sec. 45-1)
I. When whole of the price has not been paid of tendered.
II. When the bill of exchange or negotiable instrument has
been received as a condition of payment and the
condition on which it was received has not been fulfilled
by the reason on dishonor of the instrument or
otherwise.
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UNPAID SELLER

15. Features of the Unpaid Seller
I. He must sell goods on the cash basis and must be unpaid.
II. If he sells on credit basis, he is not an unpaid seller during the period of
credit.
III. The term of credit has expired and the price has not been paid to him.
IV. He must be unpaid wholly or partially. If a part of price remains unpaid,
he is unpaid.
V. When the price is paid in the form of negotiable instruments and it has
been dishonored.
VI. If buyer offers payment and seller refuses to accept, the seller is not an
unpaid seller.
Example:
I. Party A sells a car on cash basis to party B and the price has not been
received yet.
II. A sells good to B on 5 months credit period and B turns insolvent after 2
months.
III. A sells TV set to B on the same day cheque basis, the cheque is
dishonored due to insufficient funds. A is an unpaid seller.
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16. Rights of an Unpaid Seller
The unpaid seller has following rights:
1) Rights against the goods.
i. Rights of lien
ii. Right of stoppage of goods in transit
iii. Right of rescale
2) Rights against buyer personally
i. Suit for price
ii. Suit for damages for non-acceptance
iii. Suit for special damages and interest
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17. I. When the goods reaches the destination.
II. While the buyer or his agent takes possession of delivery even if it is
not reached destination.
III. In case the carrier is agent of the buyer, the transit comes to an end
the instance carrier receives the goods and seller can not stop the
transition
IV. Carrier’s wrongful refusal to deliver goods to the buyer.
Example:
“A” sells TV set to “B”. “A” delivers the TV to the carrier to carry it to
“B”. Later on gets news that “B” has become insolvent; “A” can stop
delivery.
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The unpaid seller can not stop goods in transit in
following cases: