Harish bought a refrigerator from Manoj for Rs. 450. He paid Manoj Rs. 320 for repairs but the repairs were not fully paid. Manoj refused to return two parts until full payment, claiming lien. However, the contract had been fully performed when Harish took delivery, so Manoj's lien was not justified. A firm sold condensed milk to a bakery but delivered a different brand without authorization. The seller was responsible as they broke the implied condition of title. The buyer could claim damages and get their money back. A jeweler sold a client's diamond without approval. The client cannot recover the diamond from the unauthorized buyer as the sale was made in the ordinary course of business as a

1. CASE STUDY - 1
Case Summary
 Harish bought a second-hand refrigerator from Manoj for
Rs 450.
 An agreement made between them that refrigerator
should be put in order at Rs 320.
 Harish took delivery.
 Harish found it is not working properly and gave two parts
for repair to Manoj.
 The full Bill for repair has not been paid.
 Manoj claimed Lien on two parts and refuse to return until
balance is paid.
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2. QUESTIONS
 Is Manoj right what he did?
 Is the Lien justified?
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3. JUDGEMENT
 Manoj has no right of Lien.
 His refusal to return until payment is made is not
justified.
 The contract had been fully performed.
 Once the refrigerator is handed over , the Lien had
ended.
 The contract cant revive.
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4. CASE STUDY - 2
Case Summary
 A firm of confectioners’ materials agreed to sell
condensed milk in tins to a bakery.
 The milk should be of certain standard.
 The bakery received the shipping documents and
paid the price.
 The goods which arrived is of a different trade
mark of another manufacturer.
 The tins were detained by customer authority.
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5. QUESTIONS
 Is the seller responsible?
 Can the buyer get back the price?
 What is the right of buyer?
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6. JUDGEMENT
 The seller is responsible.
 The seller has broken the implied condition
relating to title to the goods.
 The seller has no right to sell other different milk
tins.
 The buyer could claim and get back the price.
 The buyer has also the right to sue for damages.
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CASE STUDY-3
 ‘A’, a jeweler was entrusted with a diamond by ‘p’
 He was asked to obtain offers for it
 ‘A’ was asked to sell to the offeror only after approval of ‘P’
 ‘A’ sold the diamond to ‘S’ without approval of ‘P’
 ‘A’ fraud with the money
 ‘P’ sued to recover the diamond

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Questions
1. Can P recover diamonds from S?
Reason Why.

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JUDGEMENT
 ‘P’ cannot recover the diamond from ‘S’
 Sale was made by ‘A’ as a mercantile agent in the
ordinary course of business

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CASE STUDY - 4
Muthu Kishan v Madhavji Devi Chand, 1953 Mad. 817
 ‘A’ ordered a certain qty of new red chilies from ‘B’
 Goods were dispatched from Karachi to Multan
 ‘A’ paid for goods on presentation of shipping
documents
 Goods were cleared at Multan port by A’s agents
 Goods were sent on rail to Bahawalpur
 On inspection the goods were found to be
deteriorated
 ‘A’ rejected the goods but retained them as security for
price already paid

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Questions
1. What kind of contract it was?
2. Give one reason of contract rejection?

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JUDGEMENT
 Contract was for the delivery of new chilies
 Buyer can reject the goods as it is a breach of
contract

13. CASE STUDY-6
L was shopping in a self-service super market. He
picked up a bottle of soft drinks from a shelf.
While he was examining it, the bottle exploded in
his hand and injured him.
He sued the Aerated Drinks Co., which has bottled
the drink, to recover damages for breach of
condition arising from the sale of food.
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14. Questions
 When warranty arises?
 Describe the idea that you got from the case study?
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15. JUDGEMENT
A warranty or condition does not arise unless there
is a sale.
No sale occurs when a customer in a self-service
super market takes an article from a shelf since he
may decide not to buy and pay for it and return it
to the shelf.
As there was no sale, there was no implied
condition.
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