The document provides an overview of the Sale of Goods Act of 1930 in India. Some key points:
- The Act was enacted in 1930 and borrowed from the English Sale of Goods Act. It defines a contract of sale as one where the seller transfers property in goods to the buyer for a price.
- It covers definitions, essential elements of a valid contract of sale, transfer of property and risk between buyer and seller, implied conditions and warranties, remedies for breach, and effects on title when goods are sold by someone without proper authority.
- The Act aims to regulate contracts for the sale of goods and determine rights and obligations of buyers and sellers to promote fairness and protect parties in sale of goods transactions.
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El documento habla sobre la formación de diptongos y la fuerza de las vocales en palabras españolas. Explica cómo se forman los diptongos y cuáles vocales son fuertes o débiles en palabras como Aranjuez, coalición, canción, producía y cuidate.
This document provides information about Indus Business Academy, formerly known as Indian Business Academy. It offers a two-year full-time PGDM program approved by AICTE in Bengaluru and Greater Noida. The academy has been ranked among the top B-schools in India. It has strong placements and career support. Details are provided about the chairman, directors, faculty members and campuses. The learning approach focuses on dialogue, discussion and discourse. Various specializations are covered along with membership in industry bodies and professional organizations. Images of the campus facilities are also included. Admission details like eligibility, selection process, intake details and important dates are mentioned.
Este documento describe las actitudes y valores de un experto en educación. En resumen: 1) Posee una alta capacidad de comprensión y expresión oral y escrita, y disfruta de la lectura y la investigación. 2) Plantea, analiza y resuelve problemas de manera creativa. 3) Reconoce los principios y valores fundamentales de la educación y asume su profesión como una vocación.
El documento habla sobre la formación de diptongos y la fuerza de las vocales en palabras españolas. Explica cómo se forman los diptongos y cuáles vocales son fuertes o débiles en palabras como Aranjuez, coalición, canción, producía y cuidate.
This document provides information about Indus Business Academy, formerly known as Indian Business Academy. It offers a two-year full-time PGDM program approved by AICTE in Bengaluru and Greater Noida. The academy has been ranked among the top B-schools in India. It has strong placements and career support. Details are provided about the chairman, directors, faculty members and campuses. The learning approach focuses on dialogue, discussion and discourse. Various specializations are covered along with membership in industry bodies and professional organizations. Images of the campus facilities are also included. Admission details like eligibility, selection process, intake details and important dates are mentioned.
99acres.com is the largest real estate portal in India. It was launched in 2005 by Info Edge and provides information on properties for sale, rent, or lease across India. Users can search listings, advertise properties, and find relevant real estate news. The site has over 3,00,000 registered users and listings from 8,000 builders and 60,000 brokers. It has experienced strong growth, becoming the leader in online real estate listings in India.
The document summarizes key topics from the Sale of Goods Act, 1930 in India, including:
1. It outlines the formation of contracts of sale and distinguishes between a sale and agreement to sell.
2. It discusses conditions and warranties, implied and express, and the rule of caveat emptor.
3. It describes the rights of an unpaid seller, including the right of lien, stoppage in transit, and re-sale of goods.
The document discusses the Sale of Goods Act 1930 in India. It covers:
- A contract of sale involves the transfer of property in goods from a seller to a buyer for a price. It must meet the requirements of a valid contract.
- There are implied conditions in a sale regarding title, quality/fitness for purpose, description if sold by description or sample, and merchantability.
- A sale transfers ownership of goods immediately, while an agreement to sell transfers ownership later or upon fulfillment of a condition. This determines risk and remedies in case of insolvency of the buyer or seller.
The document discusses the Sale of Goods Act 1930 in India. It covers:
- A contract of sale involves the transfer of property in goods from the seller to the buyer for a price. It must meet the requirements of a valid contract.
- A sale transfers ownership of goods immediately, while an agreement to sell transfers ownership in the future or upon condition fulfillment.
- Goods refer to movable property excluding money and actionable claims. Future and contingent goods are also discussed.
- Conditions and warranties can be express or implied. Breach of a condition allows contract repudiation while breach of a warranty only allows damages claims. Common implied conditions like title, quality and description are outlined.
This document discusses key concepts from the Sales of Goods Act 1930 in India, including the definition of a sale versus an agreement to sell, conditions and warranties, transfer of property, and rights of unpaid sellers. It notes that a sale involves immediate transfer of property, while an agreement to sell involves future transfer. Conditions refer to essential terms, and their breach allows contract repudiation, while warranties cover collateral terms and only allow damages claims. The document outlines implied conditions like title, description, fitness, merchantability, and custom. It also discusses implied warranties, the caveat emptor rule, and exceptions where sellers must disclose flaws.
The document summarizes key aspects of the Sale of Goods Act 1930 in India. It defines a contract of sale, outlines essential elements like parties, agreement to transfer goods, consideration in the form of price, and defines sale vs agreement to sell. It also defines goods, distinguishes conditions from warranties, discusses passage of title and exceptions to the caveat emptor rule. In summary:
1) The Sale of Goods Act governs contracts for sale of movable property and defines a sale as transfer of property from seller to buyer for a price.
2) Essential elements of a sale include at least two parties, agreement to transfer ownership of goods, goods as the subject matter, and price as consideration.
3
The Sale of Goods Act 1930 governs contracts relating to the sale of goods in India except Jammu and Kashmir. It defines key terms like buyer, delivery, and goods. A contract of sale involves an offer and acceptance between two parties for the transfer of goods ownership at a price. It must include goods, parties, price, and the transfer of property. A condition is an essential contract element while a warranty is collateral; a breach of a condition allows contract rejection but a warranty breach only permits damages.
This document discusses key concepts from Chapter 4 of the Sale of Goods Act 1930. It begins by defining a contract of sale and outlining its essential elements. It distinguishes between a sale, where ownership transfers immediately, and an agreement to sell, where ownership transfers at a future date. It defines goods and documents of title to goods. It discusses classification of goods, the importance of price, and the distinction between conditions and warranties in a contract of sale.
The document discusses key concepts from the Sales of Goods Act including:
- A contract of sale involves the transfer of ownership of goods from a seller to a buyer for a price. It can be a sale (immediate transfer of ownership) or agreement to sell (future transfer).
- Essentials of a valid contract of sale include two parties, goods as the subject matter, transfer of general property interest in the goods, and consideration in the form of money price.
- Goods can be existing, future, or contingent. Price must be in monetary terms but does not need to be fixed at the time of sale.
- Key rights and obligations depending on whether a sale or agreement to sell include risk
Sale of-goods-act by Neeraj Bhandari ( Surkhet.Nepal )Neeraj Bhandari
This document summarizes key concepts from the Sale of Goods Act relating to contracts for the sale of movable goods in India. It defines a sale as a contract where ownership transfers from seller to buyer, while an agreement to sell involves future or conditional transfer of ownership. It outlines essential elements of a sale contract, implied conditions and warranties, and consequences of breaching conditions or warranties. Exceptions to the caveat emptor doctrine are noted. Hire-purchase agreements and their differences from installment sales are also summarized.
The document discusses key concepts in contracts for the sale of goods under Indian law, including:
- A contract for the sale of goods involves the transfer of property in goods from a seller to a buyer for a price. It can be a sale (immediate transfer of property) or agreement to sell (future transfer).
- Essential elements are two parties (buyer and seller), goods to be transferred, and a price. The goods must be movable property.
- Conditions are essential terms, while warranties are collateral terms. Breach of a condition allows terminating the contract, while breach of a warranty only allows damages.
- Implied conditions include title, description, quality/fitness depending on context
The document discusses the Sale of Goods Act of 1930 in India. It provides definitions for key terms related to contracts for the sale of goods like "buyer", "seller", "goods", and "price." It outlines the essential elements of a valid contract of sale and distinguishes conditions from warranties. It also discusses implied conditions and warranties, caveat emptor, transfer of ownership of goods including specific, unascertained, and goods sold on approval. Finally, it covers delivery of goods, rights of unpaid sellers, and rights of buyers against sellers.
99acres.com is the largest real estate portal in India. It was launched in 2005 by Info Edge and provides information on properties for sale, rent, or lease across India. Users can search listings, advertise properties, and find relevant real estate news. The site has over 3,00,000 registered users and listings from 8,000 builders and 60,000 brokers. It has experienced strong growth, becoming the leader in online real estate listings in India.
The document summarizes key topics from the Sale of Goods Act, 1930 in India, including:
1. It outlines the formation of contracts of sale and distinguishes between a sale and agreement to sell.
2. It discusses conditions and warranties, implied and express, and the rule of caveat emptor.
3. It describes the rights of an unpaid seller, including the right of lien, stoppage in transit, and re-sale of goods.
The document discusses the Sale of Goods Act 1930 in India. It covers:
- A contract of sale involves the transfer of property in goods from a seller to a buyer for a price. It must meet the requirements of a valid contract.
- There are implied conditions in a sale regarding title, quality/fitness for purpose, description if sold by description or sample, and merchantability.
- A sale transfers ownership of goods immediately, while an agreement to sell transfers ownership later or upon fulfillment of a condition. This determines risk and remedies in case of insolvency of the buyer or seller.
The document discusses the Sale of Goods Act 1930 in India. It covers:
- A contract of sale involves the transfer of property in goods from the seller to the buyer for a price. It must meet the requirements of a valid contract.
- A sale transfers ownership of goods immediately, while an agreement to sell transfers ownership in the future or upon condition fulfillment.
- Goods refer to movable property excluding money and actionable claims. Future and contingent goods are also discussed.
- Conditions and warranties can be express or implied. Breach of a condition allows contract repudiation while breach of a warranty only allows damages claims. Common implied conditions like title, quality and description are outlined.
This document discusses key concepts from the Sales of Goods Act 1930 in India, including the definition of a sale versus an agreement to sell, conditions and warranties, transfer of property, and rights of unpaid sellers. It notes that a sale involves immediate transfer of property, while an agreement to sell involves future transfer. Conditions refer to essential terms, and their breach allows contract repudiation, while warranties cover collateral terms and only allow damages claims. The document outlines implied conditions like title, description, fitness, merchantability, and custom. It also discusses implied warranties, the caveat emptor rule, and exceptions where sellers must disclose flaws.
The document summarizes key aspects of the Sale of Goods Act 1930 in India. It defines a contract of sale, outlines essential elements like parties, agreement to transfer goods, consideration in the form of price, and defines sale vs agreement to sell. It also defines goods, distinguishes conditions from warranties, discusses passage of title and exceptions to the caveat emptor rule. In summary:
1) The Sale of Goods Act governs contracts for sale of movable property and defines a sale as transfer of property from seller to buyer for a price.
2) Essential elements of a sale include at least two parties, agreement to transfer ownership of goods, goods as the subject matter, and price as consideration.
3
The Sale of Goods Act 1930 governs contracts relating to the sale of goods in India except Jammu and Kashmir. It defines key terms like buyer, delivery, and goods. A contract of sale involves an offer and acceptance between two parties for the transfer of goods ownership at a price. It must include goods, parties, price, and the transfer of property. A condition is an essential contract element while a warranty is collateral; a breach of a condition allows contract rejection but a warranty breach only permits damages.
This document discusses key concepts from Chapter 4 of the Sale of Goods Act 1930. It begins by defining a contract of sale and outlining its essential elements. It distinguishes between a sale, where ownership transfers immediately, and an agreement to sell, where ownership transfers at a future date. It defines goods and documents of title to goods. It discusses classification of goods, the importance of price, and the distinction between conditions and warranties in a contract of sale.
The document discusses key concepts from the Sales of Goods Act including:
- A contract of sale involves the transfer of ownership of goods from a seller to a buyer for a price. It can be a sale (immediate transfer of ownership) or agreement to sell (future transfer).
- Essentials of a valid contract of sale include two parties, goods as the subject matter, transfer of general property interest in the goods, and consideration in the form of money price.
- Goods can be existing, future, or contingent. Price must be in monetary terms but does not need to be fixed at the time of sale.
- Key rights and obligations depending on whether a sale or agreement to sell include risk
Sale of-goods-act by Neeraj Bhandari ( Surkhet.Nepal )Neeraj Bhandari
This document summarizes key concepts from the Sale of Goods Act relating to contracts for the sale of movable goods in India. It defines a sale as a contract where ownership transfers from seller to buyer, while an agreement to sell involves future or conditional transfer of ownership. It outlines essential elements of a sale contract, implied conditions and warranties, and consequences of breaching conditions or warranties. Exceptions to the caveat emptor doctrine are noted. Hire-purchase agreements and their differences from installment sales are also summarized.
The document discusses key concepts in contracts for the sale of goods under Indian law, including:
- A contract for the sale of goods involves the transfer of property in goods from a seller to a buyer for a price. It can be a sale (immediate transfer of property) or agreement to sell (future transfer).
- Essential elements are two parties (buyer and seller), goods to be transferred, and a price. The goods must be movable property.
- Conditions are essential terms, while warranties are collateral terms. Breach of a condition allows terminating the contract, while breach of a warranty only allows damages.
- Implied conditions include title, description, quality/fitness depending on context
The document discusses the Sale of Goods Act of 1930 in India. It provides definitions for key terms related to contracts for the sale of goods like "buyer", "seller", "goods", and "price." It outlines the essential elements of a valid contract of sale and distinguishes conditions from warranties. It also discusses implied conditions and warranties, caveat emptor, transfer of ownership of goods including specific, unascertained, and goods sold on approval. Finally, it covers delivery of goods, rights of unpaid sellers, and rights of buyers against sellers.
The document summarizes key aspects of the Sale of Goods Act 1930 in India. It outlines that in 1930, transactions relating to sale and purchase of goods were regulated separately from the Indian Contract Act 1872 with the passage of the Sale of Goods Act. The Act defines a contract of sale as one where the seller transfers ownership of goods to the buyer for a price. There must be two parties (buyer and seller), goods, transfer of ownership, and a price for a valid contract of sale. A sale involves immediate transfer of ownership while an agreement to sell involves future transfer of ownership. The document also discusses classification of goods, conditions and warranties, rights of unpaid sellers and more.
Dr SHIKHA AGARWAL CONTRACT OF SALE --BBA-IB.pdfyelaf54427
This document provides an overview of the Sale of Goods Act 1930 in India. It discusses key concepts around contracts of sale including the essential elements, differences between sale and agreement to sell, goods, price, conditions and warranties, and transfer of ownership. Specifically, it defines a contract of sale under section 4(1) as involving the transfer of property in goods from the seller to the buyer for a price. It also explains the different types of goods, implications of destruction or damage of goods, methods of determining price, and the distinction between conditions and warranties.
The document provides an overview of the Sales of Goods Act of 1930 in India. Some key points:
- The Act regulates contracts for the sale of goods and defines a contract of sale as one where the seller transfers property in goods to the buyer for a price.
- For a contract of sale to be valid, there must be two parties, a transfer of ownership of goods, the subject matter must be goods as defined by the Act, and consideration in the form of a price.
- The Act establishes rules regarding essential elements of a contract, different types of goods, passing of property, delivery procedures, duties of buyers and sellers, and rights of unpaid sellers including lien, stoppage of goods, and
The document discusses key concepts related to contracts of sale and consumer laws in India. It begins by defining a contract of sale under the Sale of Goods Act and outlines the essential elements, including two parties (buyer and seller), agreement to transfer property in goods from seller to buyer for a price. It also distinguishes between a sale and agreement to sell. The document then discusses implied conditions and warranties in contracts of sale, the difference between conditions and warranties, and key cases. It provides examples of various types of goods and concludes with an overview of a consumer's rights under consumer protection laws.
The document outlines key aspects of the Sale of Goods Act 1930 in India, which governs contracts for the sale of goods. 1) It defines a contract of sale and distinguishes between a sale and agreement to sell. 2) It discusses conditions and warranties that can form part of a sale contract. 3) It covers concepts like caveat emptor (buyer beware), transfer of property, and rights of unpaid sellers. The act aims to provide uniform rules for issues like delivery, risk, remedies for breach that arise in sale of goods transactions.
The Sale of Goods Act governs the sale of movable property in India. It applies to tangible movable goods, excluding money and actions. Goods may be existing, future or contingent. A sale involves transferring ownership, while an agreement to sell involves future or conditional transfer. Key elements of a valid contract of sale are movable goods, consideration in the form of money, two parties (buyer and seller), and mutual agreement. The Act implies certain conditions and warranties depending on the type of sale, regarding title, description, sample or fitness for purpose. Remedies for breach include damages, rejection, and specific performance.
This document summarizes key aspects of the Sale of Goods Act 1930 in India. It defines a contract of sale as an agreement where the seller transfers ownership of goods to the buyer for a price. The Act distinguishes between sale, where ownership transfers immediately, and agreement to sell, where ownership will transfer in the future. It also defines goods, classifications of goods, conditions and warranties, caveat emptor (buyer beware), transfer of title and risk, and performance of sales contracts. The duties of buyers and sellers are outlined regarding payment, delivery, acceptance of goods, and liability.
The document discusses the key aspects of a contract of sale under Indian law. It begins by defining a contract of sale and differentiating between a sale and an agreement to sell. It then covers the essential elements of a valid contract of sale, implied conditions and warranties, caveat emptor, and how the transfer of property occurs. Specifically, it examines how property is transferred for unascertained goods, specific goods, and goods sold on approval. The document provides a comprehensive overview of contract of sale with examples to illustrate important legal concepts.
Introduction
Definition of contract of sale
Essential elements of contract of sale
Formalities of contract of sale
Sale & Agreement to sell
Difference between sale & agreement to sale
Goods and their classification
Price
Condition & warranties
Unpaid seller
Rights of unpaid seller
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2. History
• Sale of goods act was enacted in 1930.
Borrowed from the English act.
Came into force in July, 1930.
2
3. Definition
Sec 4(1) of the Indian Sale of Goods Act, 1930
defines the contract of he sale of goods in the
following manner:
― 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”.
4. The term ―Contract of sale of goods‘ is a generic
term and it includes:
a. Sale and
b. An agreement to sell
where the seller transfers the ownership
rights to the buyer immediately on making
the contract, it is the contract of sale, but
where the ownership rights are to pass on
some future date upon the fulfillment of
certain conditions then it is called an
agreement to sell.
5. Definitions
‗Buyer‘ -- a person who buys or agrees to buy
goods
‗Delivery‘ – voluntary transfer of possession from
one person to the other
Goods are said to be in ‗deliverable state‘ when
the buyer under the contract is bound to take their
delivery
Caveat emptor i.e let the buyer beware is
universally applicable as far as quality is
5 concerned.
6. Contd/-
‗Fault‘ -- means wrongful act or default
‗Future goods‘ -- means goods to be
manufactured or produced or acquired by the
seller after the making of the contract of sale
‗Goods‘ -- means every kind of movable property
other than actionable claims and money; and
includes stock and shares, growing
crops, grass, and things attached to or forming
part of the land which are agreed to be severed
before sale or under the contract of sale
6
7. Contd/-
• A person is said to be "insolvent" who has ceased
to pay his debts in the ordinary course of
business, or cannot pay his debts as they
become due, whether he has committed an act of
insolvency or not
• ―Mercantile agent" means a mercantile agent
having in the customary course of business as
such agent authority either to sell goods, or to
consign goods for the purposes of sale, or to buy
goods, or to raise money on the security of goods
7 • ―Price" means the money consideration for a sale
8. Contd/-
• ―Property" means the general property in
goods, and not merely a special property
• ―Quality of goods" includes their state or
condition
• ―Seller" means a person who sells or agrees to
sell goods
• ―Specific goods" means goods identified and
8 agreed upon at the time a contract of sale is
9. Contd/-
• Expressions used but not defined in this Act and
defined in the Indian Contract Act, 1872, have the
meanings assigned to them in that Act.
Application of provisions of Act 9 of 1872.
• The unrepealed provisions of the Indian Contract
Act, 1872, save in so far as they are inconsistent
with the express provisions of this Act, shall
continue to apply to contracts for the sale of
goods.
9
10. ESSENTAILS OF A CONTRACT OF
SALE
In a contract of sale, there should be:
a. A contract
b. Between the two parties (i.e. the buyer and the
seller)
c. To transfer or agree to transfer,
d. The property in goods
e. From the seller to the buyer,
f. for a price (i.e money in consideration)
12. CONTRACT OF SALE
Sale and agreement to sell :
• Its 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.
• Contract is consensual and bilateral
• A contract of sale may be absolute or conditional.
• Where under a contract of sale the property in the goods is
transferred from the seller to the buyer, it‘s a sale, but where the
transfer is to take place at a future time or subject to some
condition thereafter to be fulfilled, the contract is called an
agreement to sell.
13. CONTRACT OF SALE (Contd)
An agreement to sell becomes a sale
when the time elapses or the conditions
are fulfilled subject to which the
property in the goods is to be
transferred
Money Consideration
Default and damage cases
14. Formalities of Contract
Contract of sale made
A contract of sale is made by an offer to buy or sell goods for
a price and the acceptance of such offer.
It may provide for the immediate delivery of the goods or
immediate payment of the price or both, or for the delivery or
payment by installments, or that the delivery or payment or
both shall be postponed.
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.
15. Subject-matter of Contract
Existing or future goods:
• The goods which form the subject of a contract of sale may be
either existing goods, owned or possessed by the seller, or
future goods.
• There may be a contract for the sale of goods the acquisition of
which by the seller depends upon a contingency which may or
may not happen.
• Where by a contract of sale the seller purports to effect a
present sale of future goods, the contract operates as an
agreement to sell the goods.
16. Goods perishing before making of contract:
Where there is a contract-for the sale of specific goods, it‘s void if the goods
without the knowledge of the seller have perished or become so damaged
as no longer to answer to their description in the contract, at the time when
the contract was made
Goods perishing before sale but after agreement to sell:
Where there is an agreement to sell specific goods, and subsequently the
goods without any fault on the part of the seller or buyer perish or become
so damaged as no longer to answer to their description in the agreement
before the risk passes to the buyer, the agreement is thereby avoided.
17. The Price
Ascertainment of price:
• The price in a contract of sale may be fixed by the contract or
may be left to be fixed in manner thereby agreed or may be
determined by the course of dealing between the parties.
• Where the price is not determined in accordance with the
foregoing provisions, the buyer shall pay the seller a
reasonable price.
• What is a reason-able price is a question of fact dependent on
the circumstances of each particular case
18. Relevant Case
Ganganagar Sugar Mills Ltd. Vs. Rameshwar Das Tara
Chand AIR 1992 Raj 14
Sugar in specific quantity and of the given lot and in
deliverable state was knocked down to a bidder at an
auction. It was deemed property passed at the very
moment.
Subsequent imposition of price control did not make the
contract unlawful and hence bid price was recoverable.
19. Agreement to sell at valuation:
• Where there is an agreement to sell goods on the terms that
the price is to be fixed by the valuation of a third party and
such third party cannot or does not make such valuation, the
agreement is thereby avoided,
Provided that, if the goods or any part thereof have been
delivered to, and appropriated by, the buyer, he shall pay a
reasonable price therefore
• Where such third party is prevented from making the
valuation by the fault of the seller or buyer, the party not in
fault may maintain a suit for damages against the party in
fault.
21. CONDITIONS
A condition is a basic and important part of the
contract.
If one party breaches a condition then the other
party may
End the contract
Refuse to perform their part of the contract
Continue with the contract but then sue for
damages
22. WARRANTIES
On the other hand, a warranty is not vital to the
contract.
If one party breaches a warranty then the other
party can only continue with the contract and then
sue for damages
23. IMPLIED UNDERTAKING
RIGHT TO TITLE(section 14)
Seller has the right to sell.
The buyer shall have and enjoy quiet possession of
the goods.
Goods shall be free from any charge or encumbrance
in favour of any third party not declared or known to
the buyer before or at the time when the contract is
made.
24. Relevant Case
United India Insurance vs. Kanchan Bai. AIR 1981 MP
225
A truck involved in an accident was sold
to another party, while not fulfilling the
requirements of the Motor Vehicle
Act, relating to delivery and payment of
full consideration.
The owner was held responsible for the
accident and its consequences.
25. Sale by description
• Impose obligation on seller and manufacturer where
sale made in course of business.
• Where the purchaser has not seen the good and
relies on the description alone, the buyer must get
what has been described.
• Provided that, in the case of a contract for the sale
of a specified article under its patent or other trade
name, there is no implied condition as to its fitness
for any particular purpose
26. Description with examination
• Where goods are bought by description from a
seller who deals in goods of that description
(whether he is the manufacturer or producer or
not), there is an implied condition that the goods
shall be of merchantable quality,
Provided that, if the buyer has examined the
goods, there shall be no implied condition as
regards defects which such examination ought to
have revealed.
27. Implied conditions
Section 16
Implied conditions as to fitness for purpose
– goods must be reasonably fit for the purpose for which
they were bought
Implied conditions as to merchantable quality
– goods are capable of function they are made to perform
or function reasonably expected by buyer
28. SALE BY SAMPLE
In the case of a contract for sale by sample there is an
implied condition—
• (a) that the bulk shall correspond with the sample in
quality ;
• (b) that the buyer shall have a reasonable opportunity of
comparing the bulk with the sample;
• (c) that the goods shall be free from any
defect, rendering them unmerchantable, which would
not be apparent on reasonable examination of the
sample.
29. Remedies for breach of contract of
sale
For unpaid seller
has not received full payment
has rights against goods, but differ depending on whether
goods have already passed to buyer
has rights against buyer where buyer refuses or neglects to
accept delivery
30. Remedies for breach of contract of
sale
For buyer
purchaser of goods from seller
has rights against seller where seller has not
delivered goods or goods have defect
claim damages
specific performance
buyer may rescind from contract
31. Buyer beware
CAVEAT EMPTOR- a buyer buys at his own risk.
Now we have consumer protection act (1986)
33. Transfer of Property between Buyer
and Seller
1. Goods must be ascertained-
No property in the goods is transferred to
the buyer until they are ascertained.
2. Property passes when intended to pass
For the purpose of ascertaining intention, terms
of contract, conduct of parties & circumstances of
case to be considered.
Sections 20 to 24 to be considered to ascertain
intention of parties.
34. Relevant Case
• Abdul Aziz vs. Jogendra Krishna Roy,(1917)
ILR 44 Cal 98
The sale had taken place, but still the goods were
not passed as the custom of the trade was that
the goods should be selected, tested and
weighed by the buyer.
Even if the sale is unconditional, the court can
rule not in favour of the seller.
35. 3.Specific goods in a deliverable state
In such a case, property passes to the buyer when
contract is made, irrespective of the time of payment
of price or delivery of goods.
4.Specific goods to be put in deliverable state
When seller is bound to do something, property
passes only when such thing is done and buyer takes
notice thereof.
36. 5.Sale of unascertained goods & appropriation
Where there is sale of unascertained goods and goods
of that description are unconditionally appropriated to
the contract, the property thereupon passes to the
buyer.
Where seller transfers the goods to bailee or carrier for
transmission to buyer, he is deemed to have
unconditionally appropriated the goods to the contract.
37. 6.Goods sent on approval or ―on sale or return‖
In such cases, property passes to the buyer –
When he signifies approval or acceptance to the
seller;
When he does not signify acceptance, but retains
the goods without giving notice of rejection,
38. Risk prima facie passes with
property
When property in the goods is transferred to
the buyer, the goods are at the buyer‘s risk
whether delivery has been made or not.
Provided that, where delivery has been delayed
through the fault of either buyer or seller, the goods
are at the risk of the party in fault.
39. Relevant Case
Digambar Pershad Kirti Prasad vs. State of UP,(1996) All LJ 158
Auction of a forest knocked down to highest bidder, approved by
conservator of forests. Purchaser commenced felling and
collecting at a central point for transport. The forest was
destroyed by fire.
Purchaser liable to pay full bid money and not merely the price
of forest harvested. The contract was unconditional, the goods
were specific and in deliverable state. The property passed as
the contract was made.
40. Transfer of title
1.Sale by person not the owner
In case a person, who is not the owner of the
goods, sells them thereof without the authority or
the consent of the seller, the buyer acquires no
better title than what the seller had.
Exception: where a mercantile agent is, with the
consent of the owner, in possession of the
goods, any sale made by him, shall be
valid, provided that the buyer has acted in good
faith and was not aware, at the time of purchase
that seller has no authority to sell.
41. Relevant Case
State of M.P vs. G.L Patel & Co. AIR 1997 MP 74
Auction of forest produce to be sanctioned for final
approval by Conservator of Forests.
Acceptance of the bid by Divisional Forest officer
had no binding efficacy, sale incomplete, so was
cancelled by the state govt.
42. 2.Sale by one of joint owners
If one of several joint owners of goods has sole
possession of them by permission of the co-owners, the
property transfers to the buyer who buys the goods
from such joint owner, provided he bought the goods in
good faith and had not noticed at the time of purchase
that the seller has no authority to sell.
43. 3.Sale by person in possession of goods under voidable
contract
When the seller has obtained possession under a contract
voidable under section 19 or 19A,but the contract has not been
rescinded at the time of contract, the buyer acquires a good title to
the goods, provided he acted in good faith.
4. Seller or buyer in possession after sale
• If a person, having sold goods, continue to be in possession of
such goods, and sells them to some other person, in that case the
subsequent buyer acquires a good title to such goods, provided he
acted in good faith and without notice of the previous sale.
44. • Also where a person, having bought or agreed to
buy goods, obtains possession of the goods or
documents of title, and subsequently sells them to
some other person, who receives them in good faith
and without notice of any lien or other right of the
original seller, shall have effect as if such lien or
right did not exist.
46. Seller and Buyer
Duty of seller to deliver the goods
Duty of buyer to accept and pay for
them
47. Delivery
Payment and delivery are concurrent conditions
Seller willing to give possession of the goods to the buyer in
exchange for the price
Buyer shall be willing to pay the price in exchange for
possession of the goods.
doing anything which the parties agree shall be treated as
delivery
putting the goods in the possession of the buyer or of any
person authorized to hold them on his behalf
48. Effects of Part Delivery
A delivery of part of goods, in progress of the
delivery of the whole, has the same effect, for the
purpose of passing the property in such
goods, as a delivery of the whole;
but a delivery of part of the goods, with an
intention of severing it from the whole, does not
operate as a delivery of the remainder.
49. Buyer to apply for delivery
Apart from any express contract, the seller of
goods is not bound to deliver them until the buyer
applies for delivery.
50. Rules as to delivery
(1)Question depending in each case on the
contract, express or implied, between the parties.
Apart from any such contract, goods sold are to
be delivered at the place at which they are at the
time of the sale, and goods agreed to be sold are
to be delivered at the place at which they are at
the time of the agreement to sell, or, if not then in
existence, at the place at which they are
manufactured or produced.
51. (2) Where under the contract of sale the seller is
bound to send the goods to the buyer, but no
time for sending them is fixed, the seller is
bound to send them within a reasonable time.
(3) Where the goods at the time of sale are in the
possession of a third person, there is no delivery
by seller to buyer unless and until such third
person acknowledges to the buyer that he holds
the goods on his behalf:
52. Rules as to Delivery Contd…
(4) Demand or tender of delivery may be treated as
ineffectual unless made at a reasonable hour.
What is a reasonable hour is a question of fact.
(5) Unless otherwise agreed, the expenses of and
incidental to putting the goods into a deliverable
state shall be borne by the seller.
53. Delivery of wrong quantity
Short Delivery - Where the seller delivers to the
buyer a lesser quantity of goods, the buyer may
reject them, but if the buyer accepts the goods so
delivered he shall pay for them at the contract
rate.
Excess Delivery - Where the seller delivers to the
buyer a greater quantity of goods, the buyer may
accept the goods included in the contract and
reject the rest, or he may reject the whole. If the
buyer accepts the whole of the goods so
delivered, he shall pay for them at the contract
rate.
54. Delivery of Mixed Goods - Where the seller
delivers to the buyer the goods he contracted to
sell mixed with goods of a different description not
included in the contract, the buyer may accept the
goods which are in accordance with the contract
and reject the rest, or may reject the whole.
The provisions of this section are subject to any
usage of trade, special agreement or course of
dealing between the parties.
55. Delivery to carrier
Where, in pursuance of a contract of sale the seller is
authorized or required to send the goods to the buyer,
delivery of the goods to a carrier, whether named by
the buyer or not, for the purpose of transmission to the
buyer, or delivery of the goods to a wharfinger for safe
custody, is prima facie deemed to be a delivery of the
goods to the buyer.
Unless otherwise authorized by the buyer, the seller
shall make such contract with the carrier on behalf of
the buyer as may be reasonable having regard to the
nature of the goods. If the seller omits so to do, and the
goods are lost or damaged in course of transit, the
buyer may decline to treat the delivery to the carrier as
a delivery to himself.
56. Unless otherwise agreed, where goods are sent by
the seller to the buyer by a route involving sea
transit, in circumstances in which it is usual to
insure, the seller shall give such notice to the buyer
as may enable him to insure them during their sea
transit, and if the seller fails so to do, the goods shall
be deemed to be at his risk during such sea transit.
58. Buyer's right of examining the goods
Where goods are delivered to the buyer which he has
not previously examined, he is not deemed to have
accepted them unless and until he has had a
reasonable opportunity of examining them for the
purpose of ascertain-ing whether they are in
conformity with the contract.
Unless otherwise agreed, when the seller tenders
delivery of goods to the buyer, he is bound, on
request, to afford the buyer a reasonable opportunity
of examining the goods for the purpose of
ascertaining whether they are in conformity with the
contract.
59. Acceptance
The buyer is deemed to have accepted the goods
when he intimates to the seller that he has accepted
them, or when the goods have been delivered to him
and he does any act in relation to them which is
inconsistent with the ownership of the seller, or
when, after the lapse of a reasonable time, he
retains the goods without intimating to the seller that
he has rejected them.
60. Rejection of Goods
Buyer not bound to return rejected goods
Unless otherwise agreed, where goods are delivered to the
buyer and he refuses to accept them, having the right so to
do, he is not bound to return them to the seller, but it is sufficient
if he intimates to the seller that he refuses to accept them.
Liability of buyer for neglecting or refusing delivery of goods
When the seller is ready and willing to deliver the goods and
requests the buyer to take delivery, and the buyer does not within
a reasonable time after such request take delivery of the
goods, he is liable to the seller for any loss occasioned by his
neglect or refusal to take delivery, and also for a reasonable
charge for the care and custody of the goods
61. Relevant Case
National Small Industries Corporation Limited vs.
Ramchandra Raghunath Joshi, (1995) ALHC
400(Bom): (1994)4 Bom LR 598
The buyer refused to take delivery of goods. Seller resold the
goods.
The difference between the contract price and resale price was
allowed by way of damages. The buyer‘s neglect does not entitle
the seller to put an end to the contract.
63. RIGHTS OF THE UNPAID SELLER AGAINST THE
GOODS
DEFINITION: UNPAID SELLER
a) when the whole of the price has not been paid or
tendered
b) when a bill of exchange or other negotiable instrument
has been received as conditional payment, and the
condition on which it was received has not been fulfilled
by reason of the dishonour of the instrument or otherwise
64. SELLER
The term "seller" includes any person who is in
the position of a seller, as, for instance, an agent
of the seller to whom the bill of lading has been
endorsed, or a consignor or agent who has
himself paid, or is directly responsible for, the
price.
65. Unpaid seller's rights
a lien on the goods for the price while he is in
possession of them
in case of the insolvency of the buyer a right of
stopping the goods in transit after he has parted
with the possession of them
a right of re-sale as limited by this Act
66. Unpaid seller's lien
Seller's lien.
Part delivery.
Termination of lien.
Stoppage in transit
• Right of stoppage in transit.
• Duration of transit.
• How stoppage in transit is effected.
67. Transfer by buyer and seller
Effect of sub-sale or pledge by buyer
Sale not generally rescinded by lien or stoppage
in transit.
68. SUITS FOR BREACH OF THE
CONTRACT
Mandeep Singh Grover
Roll No. 317
69. Suits for Breach of the Contract
Seller‘s Remedies Against Buyer
Suit for Price
Damages for non-acceptance
Buyer‘s Remedies Against Seller
Damages for non-delivery
Specific Performance
Remedy for Breach of Warranty
Repudiation of contract before due date
Interest by way of damages and special
damages
70. Suit for price
• Where under a contract of sale the property in the goods has passed
to the buyer and the buyer wrongfully neglects or refuses to pay for the
goods according to the terms of the contract, the seller may sue him
for the price of the goods.
• Where under a contract of sale the price is payable on a day certain
irrespective of delivery and the buyer wrongfully neglects or refuses to
pay such price, the seller may sue him for the price although the
property in the goods has not passed and the goods have not been
appropriated to the contract.
• Price in Foreign Currency
• Case : Khusalbhai Vs Mohmad Hussain
71. Damages for non-acceptance
Where the buyer wrongfully neglects or refuses
to accept and pay for the goods, the seller may
sue the buyer for damages for non-acceptance.
Damages Assessed acc. to Sections 73 & 74 of
contract act
Duty of Mitigation : Losses to be calculated on the
day of the breach
Case: Jamal V Moola Dawood Sons Co.
72. Damages for non-delivery
Where the seller wrongfully neglects or refuses
to deliver the goods to the buyer, the buyer may
sue the seller for damages for non-delivery.
Duty of Mitigation: Losses to be calculated on the
day of the breach
Case: Patrick Vs. Russo British Grain Export Co.
73. Specific performance
• Subject to the provisions of Chapter II of the Specific Relief
Act, 1877 (1 of 1877), in any suit for breach of contract to
deliver specific or ascertained goods, the Court may, if it thinks
fit, on the application of the plaintiff, by its decree direct that the
contract shall be performed specifically, without giving the
defendant the option of retaining the goods on payment of
damages.
• The decree may be unconditional, or upon such terms and
conditions as to damages, payment of the price or
otherwise, as the Court may deem just, and the application of
the plaintiff may be made at any time before the decree.
74. Remedy for breach of warranty
• Where there is a breach of warranty by the seller, or where
the buyer elects or is compelled to treat any breach of a
condition on the part of the seller as a breach of warranty, the
buyer is not by reason only of such breach of warranty
entitled to reject the goods; but he may—
(a) set up against the seller the breach of warranty in diminution
or extinction of the price; or
(b) sue the seller for damages for breach of warranty
The fact that a buyer has set up a breach of warranty in
diminution or extinction of the price does not prevent him
from suing for the same breach of warranty if he has
suffered further damage.
Case: Mason Vs. Burningham
75. Repudiation of contract before due
date
Where either party to a contract of sale repudiates
the contract before the date of delivery, the other
may either treat the contract as subsisting and wait
till the date of delivery, or he may treat the contract
as rescinded and sue for damages for the breach.
Damages to be assessed on the day stipulated for
delivery
Case: Hochester V. De La Tour
76. Interest by way of damages and
special damages
Nothing in this act shall affect the right of the
seller or the buyer to recover interest or special
damages may be recoverable, or to recover the
money paid where the consideration for the
payment of it has failed
In the absence of a contract to the
contrary, court may award interest at such rate it
thinks fit on the amount of the price.
78. Interest by way of damages and special
damages
• Nothing in this Act shall affect the right of the seller or the buyer to
recover interest or special damages in any case where by law
interest or special damages may be recoverable, or to recover the
money paid where the consideration for the payment of it has failed.
• In the absence of a contract to the contrary, the Court may award
interest at such rate as it thinks fit on the amount of the price—
(a) to the seller in a suit by him for the amount of the price—from the
date of the tender of the goods or from the date on which the price
was payable;
(a) to the buyer in a suit by him for the refund of the price in a case of a
breach of the contract on the part of the seller—from the date on
which the payment was made
79. Miscellaneous
Exclusion of Implied Terms and Conditions
By Express Contract
Course of Dealing
Trade Usage
Reasonable Time
80. Miscellaneous
Auction Sale
Right to Impose Conditions
Formation of Ring or Knock Out
Bidder‘s right to withdraw bid
Auctioneer‘s right not to accept any bid
Acceptance by Proper Authority
Incidence of Taxation
Repeal and Savings