SlideShare a Scribd company logo
1 of 22
M A D E B Y : -
VISHAKHA
UTSAV GUPTA
ANUJ CHAUDHARY
SHAILENDER SINGH
LEGAL INCIDENTS OF SALE
&
AGREEMENT TO SELL
INTRODUCTION
 Prior to 1930, The Laws Relating to Sale and Purchase of Goods was
Dealt by:
The Indian Contract Act, 1872
 In 1930, Sections 76 to 123 of The Contract Act were repealed and a
separate Act Known as Sale of Goods Act,1930 was passed.
 The Sale of Goods Act, 1930 was laid down to define and amend the law
relating to the sale of Goods or Movables. The Act Came into Force on
the 1st Of July, 1930; extending to Whole of the India Except
Jammu and Kashmir.
CONTRACT OF SALE:
 Section 4(1) of the Sale of Goods Act,1930 Defines the Term
“Contract of Sale” as-
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.
 The Contract of Sale Can be Clubbed in Two Types:
: SALE
: AGREEMENT TO SELL
MEANING OF:
SALE:
It is a Contract where the ownership in the Goods is
Transferred by the Seller to the Buyer Immediately at the
Conclusion Contract.
AGREEMENT TO SELL:
It is a contract of sale where the transfer of property in Goods is
to take place at a future date or subject to some condition
thereafter to be fulfilled.
ESSENTIALS OF A CONTRACT OF SALE:
 There must be at-least Two Parties.
 The Subject Matter of the Contract Must be Goods.
 Price.
 Transfer of Property in Goods.
 Absolute or Conditional.
 All Other Essentials of a Valid Contract.
DIFFERENCE
BASIS SALE AGREEMENT TO
SELL
1. TRANSFER OF
PROPERTY
The Property of Goods
Passes from the seller to
the Buyer immediately. So
the seller is no more
owner of the Goods sold.
It is an Executed Contract.
The transfer of property of
the Goods is to take place
at a future time or subject
to certain conditions to be
fulfilled. It is an executory
contract.
2. TYPE OF GOODS A sale can only be in-case
of existing and specific
Goods only.
An Agreement to sell is
mostly in-case of future
and contingent goods.
Although it may refer to
uncertain existing goods.
3. RISK OF LOSS In a Sale, If the Goods Are
Destroyed, the loss falls
on the buyer even though
the goods are in the
possession of the seller.
In an agreement to sell, if
the goods are destroyed,
the loss falls on the seller
even though the goods are
in the possession of the
buyer.
BASIS SALE AGREEMENT TO SELL
4. CONSEQUENCES OF
THE BREACH
In a sale, if the buyer fails
to pay the price of goods or
if there is a breach in the
contract, the seller can sue
for the price even though
the goods are still in his
possession.
If there is a breach of contract by the
buyer, the seller can only sue for the
damages and not for the price.
4. RIGHT TO RE-SELL The seller cannot resell the
goods.
The buyer who takes the goods for
consideration and without notice of
the prior agreement gets him a good
title. The original buyer can only sue
he seller for damages
5. GENERAL AND
PARTICULAR PROPERTY
The sale of contract plus
conveyance, creates “Jus in
Rem”, ie: Give right to the
buyer to enjoy the goods as
against the word and large
including the seller.
An agreement to sell is merely a
contract, pure and simple and creates
“jus in personam”,ie: Gives a right to
the buyer against the seller to sue for
the damages
BASIS SALE AGREEMENT TO SELL
7. INSOLVENCY OF
THE BUYER
In a sale, if the buyer
becomes insolvent
before he pays for goods,
the seller in the absence
of the lien over the
goods, must return them
to the official receiver or
assignee. He can only
claim the reteable
dividend for the price of
the goods.
If the buyer becomes
insolvent, and has not
yet paid the price, the
seller is not bound to
part with the goods until
he is paid for.
8. INSOLVENCY OF
THE SELLER
If the seller becomes
insolvent, the buyer
being the owner is
entitled to recover the
goods from the official
receiver of the assignee.
If the buyer who has
paid the price, finds that
the seller has become
insolvent, he can only
claim a reteable
dividend and not the
goods because property
in them has not yet
Legal incidents
Cehave N.V. v. Bremer Handelsgesellschaft mbH; the Hansa Nord
[1976] Q.B. 44.
Summary of the fact:
A written contract to sell fruit pellets contained the express stipulation,
“shipment to be made in good condition.” In fact, some of the pellets were
not in good condition when shipped. However, they were, on arrival, still
fit to be used for the purpose the buyer had intended and although they
were worth less than they should have been, they could still have been re-
sold at a reduced price.
Issue:
1.Whether there is a breach of condition?
2.Whether the buyer is entitled to repudiate the contract and reject the
goods?
Contd.
Decision:
It was held that there was no breach of condition and the buyer was not entitled
to repudiate the contract and to reject the goods. But the buyer is entitled to
damages.
Reasoning:
The sellers were not in breach of the implied conditions as to fitness for purpose
and merchantable quality. The express stipulation in the contract was not a
condition and the sellers’ breach of it had not been serious enough to go to the
root of the contract. Therefore the buyers were entitled only to damages.
Rowland v. Divall [1923] 2 K.B. 500.
Summary of fact:
Rowland bought a motor-car from Divall and used it for four months. Divall
had no title to the car, and consequently Rowland had to surrender it to the
true owner. Rowland sued to recover the total purchase price he had paid to
Divall.
Issue:
1.Whether there is a breach of condition?
2.Whether the buyer is entitled to recover the total purchase price?
Decision:
It was held that there is a breach of implied condition as to title by the seller and
therefore the buyer is entitled to recover the purchase price in full, notwithstanding that
he used the car for four months.
Reasoning:
There was a breach of condition. Consequently the buyer can repudiate the contract and
reject the goods. But in this case the car was already taken by the real owner; hence no
question of rejection of goods arises. Therefore, the buyer can repudiate the contract by
taking back the full purchase money as damages due to the breach of condition. The
consideration had totally failed on the part of the seller. The use of the car that he had
had was no part of the consideration that he had contracted for, which was the property
in and lawful possession of the car, whereas what he got was an unlawful which exposed
him to the risk of an action at the suit of the true owner.
Beale v. Taylor [1967] 1 W.L.R. 1193.
Summary of the fact:
A buyer responded to an advertisement describing a car for sale as a “1961”
model. He inspected the car before buying it. After buying it he discovered that
the car consisted of half a 1961 model and half of an earlier car.
Issue:
1.Whether there was a breach of implied condition as to description?
2.Whether the buyer was entitled to reject the car?
Contd.
Decision:
It was held that the seller was liable for breach of condition as to description
and the buyer is entitled to reject the goods thereby.
Reasoning:
The buyer had relied at least to some extent on the description of the goods
which becomes a condition. Therefore dissimilarity with the description of the
delivered goods caused the breach of such condition.
Nichol v. Godts (1854) 10 Ex. 191
Summary of the Fact:
Nichol agreed to sell to Godts some oil described as “foreign refined rape oil,
warranted only equal to sample.” Nichol delivered oil equal to the quality of
the samples, but which was not “foreign refined rape oil.”
Issue:
1.Whether a breach of condition has occurred?
2.Whether the buyer is entitled to refuse the goods?
Contd.
Decision:
It was held that breach of condition occurred and Godts could refuse to accept
the goods.
Reasoning:
Where there is a sale of goods by sample as well as by description, the goods
must correspond with the description as well as sample. Here the goods
corresponded with the sample but not with the description.
Re Moore & Co. v. Landauer & Co. [1921] 2 K.B. 519
Summary of Fact:
Moore sold to Landauer 3,100 cases of Australian canned fruits, the cases to
contain 30 tins each. Moore delivered the total quantity, but about half the
cases contained 24 tins, and the remainder 30 tins. Landauer rejected the
goods. There was no difference in market value between goods packed 24 tins
and goods packed 30 tins to the case.
Issue:
1.Whether a breach of condition has occurred?
2.whether the buyer is entitled to reject the goods/
Contd.
Decision:
It was held that Landauer could reject the whole goods as there was a breach
of condition.
Reasoning:
As the goods delivered did not correspond with the description of those
ordered.
Brown (B.S.) & Son Ltd. V. Craiks Ltd. [1970] 1 W.L.R.
752
Summary of fact:
The buyer of “industrial fabric” found that it was unsuitable for making into
dresses but that it was suitable for other industrial purposes; as such it was
commercially saleable, though at a slightly reduced price.
Issue:
1.Whether the goods were of merchantable quality?
Decision:
It was held that the goods were of merchantable quality.
Reasoning:
The goods could be used for some other purposes and it had commercial
value. Therefore it meets the demand of merchantable quality. If the goods
supplied are useless for any purpose for which goods of that description are
usually used then they are probably not of merchantable quality. On the other
hand, if they are still suitable for some of the purposes for which goods of that
description are usually used and could be re-sold for the same or very nearly
the same price as if they were suitable for every purpose, they will remain of
merchantable quality.
Reference
 http://ahsanlaw.blogspot.in/2012/01/case-laws-on-sales-of-goods-act-
1930.html

More Related Content

What's hot

DISHONOUR OF CHEQUES
DISHONOUR OF CHEQUESDISHONOUR OF CHEQUES
DISHONOUR OF CHEQUESKriace Ward
 
Doctrine of caveat emptor
Doctrine of caveat emptorDoctrine of caveat emptor
Doctrine of caveat emptorAmulya Nigam
 
PPT on the topic Pledge under ICA, 1872
PPT on the topic Pledge under ICA, 1872PPT on the topic Pledge under ICA, 1872
PPT on the topic Pledge under ICA, 1872Swasti Chaturvedi
 
Conditions and warranties
Conditions  and warrantiesConditions  and warranties
Conditions and warrantiesAgam Sharma
 
Professional Practice I - Contempt of Court
Professional Practice I - Contempt of Court Professional Practice I - Contempt of Court
Professional Practice I - Contempt of Court intnmsrh
 
Contract of guarantee
Contract of guaranteeContract of guarantee
Contract of guaranteeAmrita Singh
 
Contract of Indemnity
Contract of IndemnityContract of Indemnity
Contract of IndemnityAmrita Singh
 
Sale of goods act 1930/Business Law
Sale of goods act 1930/Business LawSale of goods act 1930/Business Law
Sale of goods act 1930/Business Lawshrinivas kulkarni
 
O. XXXIX Temporary injunctions and interlocutory orders of CPC,1908
O. XXXIX Temporary injunctions and interlocutory orders of CPC,1908O. XXXIX Temporary injunctions and interlocutory orders of CPC,1908
O. XXXIX Temporary injunctions and interlocutory orders of CPC,1908AMITY UNIVERSITY RAJASTHAN
 
Anglo Norwegian Fisheries Case
Anglo Norwegian Fisheries CaseAnglo Norwegian Fisheries Case
Anglo Norwegian Fisheries CaseRahul Yadav
 
Performance of contract
Performance of contractPerformance of contract
Performance of contractRashmi Dubey
 
Unpaid seller business law
Unpaid seller business lawUnpaid seller business law
Unpaid seller business lawKinnar Majithia
 
Capacity to contract - Business law
Capacity  to contract - Business lawCapacity  to contract - Business law
Capacity to contract - Business lawshrinivas kulkarni
 
Specific relief act.ppt
Specific relief act.pptSpecific relief act.ppt
Specific relief act.pptAmaresh Patel
 

What's hot (20)

DISHONOUR OF CHEQUES
DISHONOUR OF CHEQUESDISHONOUR OF CHEQUES
DISHONOUR OF CHEQUES
 
Doctrine of caveat emptor
Doctrine of caveat emptorDoctrine of caveat emptor
Doctrine of caveat emptor
 
PPT on the topic Pledge under ICA, 1872
PPT on the topic Pledge under ICA, 1872PPT on the topic Pledge under ICA, 1872
PPT on the topic Pledge under ICA, 1872
 
Conditions and warranties
Conditions  and warrantiesConditions  and warranties
Conditions and warranties
 
Business Law 3
Business Law 3Business Law 3
Business Law 3
 
Professional Practice I - Contempt of Court
Professional Practice I - Contempt of Court Professional Practice I - Contempt of Court
Professional Practice I - Contempt of Court
 
Contract of guarantee
Contract of guaranteeContract of guarantee
Contract of guarantee
 
Contract of Indemnity
Contract of IndemnityContract of Indemnity
Contract of Indemnity
 
Sale of goods act 1930/Business Law
Sale of goods act 1930/Business LawSale of goods act 1930/Business Law
Sale of goods act 1930/Business Law
 
Pledge
PledgePledge
Pledge
 
O. XXXIX Temporary injunctions and interlocutory orders of CPC,1908
O. XXXIX Temporary injunctions and interlocutory orders of CPC,1908O. XXXIX Temporary injunctions and interlocutory orders of CPC,1908
O. XXXIX Temporary injunctions and interlocutory orders of CPC,1908
 
Anglo Norwegian Fisheries Case
Anglo Norwegian Fisheries CaseAnglo Norwegian Fisheries Case
Anglo Norwegian Fisheries Case
 
Performance of contract
Performance of contractPerformance of contract
Performance of contract
 
Sales of goods act
Sales of goods actSales of goods act
Sales of goods act
 
Forfeiture of-deposit
Forfeiture of-depositForfeiture of-deposit
Forfeiture of-deposit
 
Caveat emptor ppt
Caveat emptor pptCaveat emptor ppt
Caveat emptor ppt
 
Bailment and pledge
Bailment and pledgeBailment and pledge
Bailment and pledge
 
Unpaid seller business law
Unpaid seller business lawUnpaid seller business law
Unpaid seller business law
 
Capacity to contract - Business law
Capacity  to contract - Business lawCapacity  to contract - Business law
Capacity to contract - Business law
 
Specific relief act.ppt
Specific relief act.pptSpecific relief act.ppt
Specific relief act.ppt
 

Viewers also liked

Sales of goods act agreement to sell - Legal Environment of Business - Busi...
Sales of goods act   agreement to sell - Legal Environment of Business - Busi...Sales of goods act   agreement to sell - Legal Environment of Business - Busi...
Sales of goods act agreement to sell - Legal Environment of Business - Busi...manumelwin
 
Law relating to sale of goods in Sri Lanka
 Law relating to sale of goods in Sri Lanka Law relating to sale of goods in Sri Lanka
Law relating to sale of goods in Sri LankaMaxwell Ranasinghe
 
Law relating to Sale of Goods by Maxwell Ranasinghe
Law relating to Sale of Goods by Maxwell RanasingheLaw relating to Sale of Goods by Maxwell Ranasinghe
Law relating to Sale of Goods by Maxwell RanasingheMaxwell Ranasinghe
 
Sales of goods act, 1930
Sales of goods act, 1930Sales of goods act, 1930
Sales of goods act, 1930Amanpreet Kaur
 
Business Law - Sales of Goods Act Case Studies
Business Law - Sales of Goods Act Case StudiesBusiness Law - Sales of Goods Act Case Studies
Business Law - Sales of Goods Act Case StudiesNeville Chesan
 
Briefing of Monsanto Co v Coramandal Indag Products
Briefing of Monsanto Co v  Coramandal Indag ProductsBriefing of Monsanto Co v  Coramandal Indag Products
Briefing of Monsanto Co v Coramandal Indag ProductsFrieda Lopez
 
Contract & warranties
Contract  & warranties Contract  & warranties
Contract & warranties Babasab Patil
 
Case Note: Rockman & Rockman [2014] FCCA 1966
Case Note: Rockman & Rockman [2014] FCCA 1966Case Note: Rockman & Rockman [2014] FCCA 1966
Case Note: Rockman & Rockman [2014] FCCA 1966Corey Gauci
 
Ch. 12 warranties
Ch. 12  warrantiesCh. 12  warranties
Ch. 12 warrantiesanasmith09
 
Sale of goods act
Sale of goods actSale of goods act
Sale of goods actJay Akhani
 
Difference between sale and agreement to sell
Difference between sale and agreement to sellDifference between sale and agreement to sell
Difference between sale and agreement to selldeepthyk
 
Contract of sale of goods
Contract of sale of goodsContract of sale of goods
Contract of sale of goodsAbdullah Kareem
 
Sale and agreement to sell
Sale and agreement to sellSale and agreement to sell
Sale and agreement to sellSweetp999
 
business law case studies with solution
business law case studies with solution business law case studies with solution
business law case studies with solution Yats Bats
 

Viewers also liked (18)

Sales of goods act agreement to sell - Legal Environment of Business - Busi...
Sales of goods act   agreement to sell - Legal Environment of Business - Busi...Sales of goods act   agreement to sell - Legal Environment of Business - Busi...
Sales of goods act agreement to sell - Legal Environment of Business - Busi...
 
Law relating to sale of goods in Sri Lanka
 Law relating to sale of goods in Sri Lanka Law relating to sale of goods in Sri Lanka
Law relating to sale of goods in Sri Lanka
 
Law relating to Sale of Goods by Maxwell Ranasinghe
Law relating to Sale of Goods by Maxwell RanasingheLaw relating to Sale of Goods by Maxwell Ranasinghe
Law relating to Sale of Goods by Maxwell Ranasinghe
 
Sales of goods act, 1930
Sales of goods act, 1930Sales of goods act, 1930
Sales of goods act, 1930
 
Business Law - Sales of Goods Act Case Studies
Business Law - Sales of Goods Act Case StudiesBusiness Law - Sales of Goods Act Case Studies
Business Law - Sales of Goods Act Case Studies
 
Briefing of Monsanto Co v Coramandal Indag Products
Briefing of Monsanto Co v  Coramandal Indag ProductsBriefing of Monsanto Co v  Coramandal Indag Products
Briefing of Monsanto Co v Coramandal Indag Products
 
Contract & warranties
Contract  & warranties Contract  & warranties
Contract & warranties
 
Case Note: Rockman & Rockman [2014] FCCA 1966
Case Note: Rockman & Rockman [2014] FCCA 1966Case Note: Rockman & Rockman [2014] FCCA 1966
Case Note: Rockman & Rockman [2014] FCCA 1966
 
Law sale of goods act
Law  sale of goods actLaw  sale of goods act
Law sale of goods act
 
Ch. 12 warranties
Ch. 12  warrantiesCh. 12  warranties
Ch. 12 warranties
 
Sale of goods act
Sale of goods actSale of goods act
Sale of goods act
 
CONTRACT OF SALE (Al-Bay')
CONTRACT OF SALE (Al-Bay')CONTRACT OF SALE (Al-Bay')
CONTRACT OF SALE (Al-Bay')
 
Difference between sale and agreement to sell
Difference between sale and agreement to sellDifference between sale and agreement to sell
Difference between sale and agreement to sell
 
contract of sale
contract of salecontract of sale
contract of sale
 
Contract of sale of goods
Contract of sale of goodsContract of sale of goods
Contract of sale of goods
 
Sale and agreement to sell
Sale and agreement to sellSale and agreement to sell
Sale and agreement to sell
 
Briefing cases
Briefing casesBriefing cases
Briefing cases
 
business law case studies with solution
business law case studies with solution business law case studies with solution
business law case studies with solution
 

Similar to Legal incidents of sale and agreement to sell under Indian law

Similar to Legal incidents of sale and agreement to sell under Indian law (20)

Salesofgoodsact1
Salesofgoodsact1Salesofgoodsact1
Salesofgoodsact1
 
Sales of Goods Act 1930
Sales of Goods Act 1930Sales of Goods Act 1930
Sales of Goods Act 1930
 
Sales of goods act
Sales of goods actSales of goods act
Sales of goods act
 
sale of goods act
sale of goods actsale of goods act
sale of goods act
 
indian sale of goods act
indian sale of goods actindian sale of goods act
indian sale of goods act
 
BRF- UNIT 2.pptx
BRF- UNIT 2.pptxBRF- UNIT 2.pptx
BRF- UNIT 2.pptx
 
Soga
SogaSoga
Soga
 
Salesofgoodsact (3rd unit)
Salesofgoodsact (3rd unit)Salesofgoodsact (3rd unit)
Salesofgoodsact (3rd unit)
 
Dr SHIKHA AGARWAL CONTRACT OF SALE --BBA-IB.pdf
Dr SHIKHA AGARWAL CONTRACT OF SALE --BBA-IB.pdfDr SHIKHA AGARWAL CONTRACT OF SALE --BBA-IB.pdf
Dr SHIKHA AGARWAL CONTRACT OF SALE --BBA-IB.pdf
 
Llb sc u 2 law of sales
Llb sc u 2 law of salesLlb sc u 2 law of sales
Llb sc u 2 law of sales
 
B.law ppt condition and warranty.pptx
B.law ppt condition and warranty.pptxB.law ppt condition and warranty.pptx
B.law ppt condition and warranty.pptx
 
Sale of goods act.ppt
Sale of goods act.pptSale of goods act.ppt
Sale of goods act.ppt
 
Sales of goods act (1930) anj(1)
Sales of goods act (1930) anj(1)Sales of goods act (1930) anj(1)
Sales of goods act (1930) anj(1)
 
Power Point Presentation
Power Point PresentationPower Point Presentation
Power Point Presentation
 
Assignment 2
Assignment 2Assignment 2
Assignment 2
 
The Sale of contract of Goods Act,1930
The Sale of contract of Goods Act,1930The Sale of contract of Goods Act,1930
The Sale of contract of Goods Act,1930
 
AIS 2102 Sale of Goods Act
AIS 2102 Sale of Goods ActAIS 2102 Sale of Goods Act
AIS 2102 Sale of Goods Act
 
Sales of goods act,1930
Sales of goods act,1930Sales of goods act,1930
Sales of goods act,1930
 
THE SALE OF GOODS ACT,1930 AND THE PARTNERSHIP ACT,1932.pptx
THE SALE OF GOODS ACT,1930 AND THE PARTNERSHIP ACT,1932.pptxTHE SALE OF GOODS ACT,1930 AND THE PARTNERSHIP ACT,1932.pptx
THE SALE OF GOODS ACT,1930 AND THE PARTNERSHIP ACT,1932.pptx
 
Sale of goods
Sale of goodsSale of goods
Sale of goods
 

Recently uploaded

Town of Haverhill's Statement of Facts for Summary Judgment on Counterclaims ...
Town of Haverhill's Statement of Facts for Summary Judgment on Counterclaims ...Town of Haverhill's Statement of Facts for Summary Judgment on Counterclaims ...
Town of Haverhill's Statement of Facts for Summary Judgment on Counterclaims ...Rich Bergeron
 
Ashutosh Yadav v. State of UP 22nd March, 2024 All HC.pdf
Ashutosh Yadav v. State of UP 22nd March, 2024 All HC.pdfAshutosh Yadav v. State of UP 22nd March, 2024 All HC.pdf
Ashutosh Yadav v. State of UP 22nd March, 2024 All HC.pdfVidit Agrawal
 
Power Point Obligations and contracts Article 1313-1327
Power Point Obligations and contracts Article 1313-1327Power Point Obligations and contracts Article 1313-1327
Power Point Obligations and contracts Article 1313-1327bariajenne
 
Hungarian legislation made by Robert Miklos
Hungarian legislation made by Robert MiklosHungarian legislation made by Robert Miklos
Hungarian legislation made by Robert Miklosbeduinpower135
 
Right to life and personal liberty under article 21
Right to life and personal liberty under article 21Right to life and personal liberty under article 21
Right to life and personal liberty under article 21vasanthakumarsk17
 
Illinois Department Of Corrections reentry guide
Illinois Department Of Corrections reentry guideIllinois Department Of Corrections reentry guide
Illinois Department Of Corrections reentry guideillinoisworknet11
 
Town of Haverhill's Summary Judgment Motion for Declaratory Judgment Case
Town of Haverhill's Summary Judgment Motion for Declaratory Judgment CaseTown of Haverhill's Summary Judgment Motion for Declaratory Judgment Case
Town of Haverhill's Summary Judgment Motion for Declaratory Judgment CaseRich Bergeron
 
ENG7-Q4-MOD3. determine the worth of ideas mentioned in the text listened to
ENG7-Q4-MOD3. determine the worth of ideas mentioned in the text listened toENG7-Q4-MOD3. determine the worth of ideas mentioned in the text listened to
ENG7-Q4-MOD3. determine the worth of ideas mentioned in the text listened toirenelavilla52178
 
1990-2004 Bar Questions and Answers in Sales
1990-2004 Bar Questions and Answers in Sales1990-2004 Bar Questions and Answers in Sales
1990-2004 Bar Questions and Answers in SalesMelvinPernez2
 
Are There Any Alternatives To Jail Time For Sex Crime Convictions in Los Angeles
Are There Any Alternatives To Jail Time For Sex Crime Convictions in Los AngelesAre There Any Alternatives To Jail Time For Sex Crime Convictions in Los Angeles
Are There Any Alternatives To Jail Time For Sex Crime Convictions in Los AngelesChesley Lawyer
 
OMassmann - Investment into the grid and transmission system in Vietnam (2024...
OMassmann - Investment into the grid and transmission system in Vietnam (2024...OMassmann - Investment into the grid and transmission system in Vietnam (2024...
OMassmann - Investment into the grid and transmission system in Vietnam (2024...Dr. Oliver Massmann
 
RA. 7432 and RA 9994 Senior Citizen .pptx
RA. 7432 and RA 9994 Senior Citizen .pptxRA. 7432 and RA 9994 Senior Citizen .pptx
RA. 7432 and RA 9994 Senior Citizen .pptxJFSB1
 
Town of Haverhill's Statement of Material Facts For Declaratory Judgment Moti...
Town of Haverhill's Statement of Material Facts For Declaratory Judgment Moti...Town of Haverhill's Statement of Material Facts For Declaratory Judgment Moti...
Town of Haverhill's Statement of Material Facts For Declaratory Judgment Moti...Rich Bergeron
 
Choosing the Right Business Structure for Your Small Business in Texas
Choosing the Right Business Structure for Your Small Business in TexasChoosing the Right Business Structure for Your Small Business in Texas
Choosing the Right Business Structure for Your Small Business in TexasBrandy Austin
 
Town of Haverhill's Motion for Summary Judgment on DTC Counterclaims
Town of Haverhill's Motion for Summary Judgment on DTC CounterclaimsTown of Haverhill's Motion for Summary Judgment on DTC Counterclaims
Town of Haverhill's Motion for Summary Judgment on DTC CounterclaimsRich Bergeron
 

Recently uploaded (15)

Town of Haverhill's Statement of Facts for Summary Judgment on Counterclaims ...
Town of Haverhill's Statement of Facts for Summary Judgment on Counterclaims ...Town of Haverhill's Statement of Facts for Summary Judgment on Counterclaims ...
Town of Haverhill's Statement of Facts for Summary Judgment on Counterclaims ...
 
Ashutosh Yadav v. State of UP 22nd March, 2024 All HC.pdf
Ashutosh Yadav v. State of UP 22nd March, 2024 All HC.pdfAshutosh Yadav v. State of UP 22nd March, 2024 All HC.pdf
Ashutosh Yadav v. State of UP 22nd March, 2024 All HC.pdf
 
Power Point Obligations and contracts Article 1313-1327
Power Point Obligations and contracts Article 1313-1327Power Point Obligations and contracts Article 1313-1327
Power Point Obligations and contracts Article 1313-1327
 
Hungarian legislation made by Robert Miklos
Hungarian legislation made by Robert MiklosHungarian legislation made by Robert Miklos
Hungarian legislation made by Robert Miklos
 
Right to life and personal liberty under article 21
Right to life and personal liberty under article 21Right to life and personal liberty under article 21
Right to life and personal liberty under article 21
 
Illinois Department Of Corrections reentry guide
Illinois Department Of Corrections reentry guideIllinois Department Of Corrections reentry guide
Illinois Department Of Corrections reentry guide
 
Town of Haverhill's Summary Judgment Motion for Declaratory Judgment Case
Town of Haverhill's Summary Judgment Motion for Declaratory Judgment CaseTown of Haverhill's Summary Judgment Motion for Declaratory Judgment Case
Town of Haverhill's Summary Judgment Motion for Declaratory Judgment Case
 
ENG7-Q4-MOD3. determine the worth of ideas mentioned in the text listened to
ENG7-Q4-MOD3. determine the worth of ideas mentioned in the text listened toENG7-Q4-MOD3. determine the worth of ideas mentioned in the text listened to
ENG7-Q4-MOD3. determine the worth of ideas mentioned in the text listened to
 
1990-2004 Bar Questions and Answers in Sales
1990-2004 Bar Questions and Answers in Sales1990-2004 Bar Questions and Answers in Sales
1990-2004 Bar Questions and Answers in Sales
 
Are There Any Alternatives To Jail Time For Sex Crime Convictions in Los Angeles
Are There Any Alternatives To Jail Time For Sex Crime Convictions in Los AngelesAre There Any Alternatives To Jail Time For Sex Crime Convictions in Los Angeles
Are There Any Alternatives To Jail Time For Sex Crime Convictions in Los Angeles
 
OMassmann - Investment into the grid and transmission system in Vietnam (2024...
OMassmann - Investment into the grid and transmission system in Vietnam (2024...OMassmann - Investment into the grid and transmission system in Vietnam (2024...
OMassmann - Investment into the grid and transmission system in Vietnam (2024...
 
RA. 7432 and RA 9994 Senior Citizen .pptx
RA. 7432 and RA 9994 Senior Citizen .pptxRA. 7432 and RA 9994 Senior Citizen .pptx
RA. 7432 and RA 9994 Senior Citizen .pptx
 
Town of Haverhill's Statement of Material Facts For Declaratory Judgment Moti...
Town of Haverhill's Statement of Material Facts For Declaratory Judgment Moti...Town of Haverhill's Statement of Material Facts For Declaratory Judgment Moti...
Town of Haverhill's Statement of Material Facts For Declaratory Judgment Moti...
 
Choosing the Right Business Structure for Your Small Business in Texas
Choosing the Right Business Structure for Your Small Business in TexasChoosing the Right Business Structure for Your Small Business in Texas
Choosing the Right Business Structure for Your Small Business in Texas
 
Town of Haverhill's Motion for Summary Judgment on DTC Counterclaims
Town of Haverhill's Motion for Summary Judgment on DTC CounterclaimsTown of Haverhill's Motion for Summary Judgment on DTC Counterclaims
Town of Haverhill's Motion for Summary Judgment on DTC Counterclaims
 

Legal incidents of sale and agreement to sell under Indian law

  • 1. M A D E B Y : - VISHAKHA UTSAV GUPTA ANUJ CHAUDHARY SHAILENDER SINGH LEGAL INCIDENTS OF SALE & AGREEMENT TO SELL
  • 2. INTRODUCTION  Prior to 1930, The Laws Relating to Sale and Purchase of Goods was Dealt by: The Indian Contract Act, 1872  In 1930, Sections 76 to 123 of The Contract Act were repealed and a separate Act Known as Sale of Goods Act,1930 was passed.  The Sale of Goods Act, 1930 was laid down to define and amend the law relating to the sale of Goods or Movables. The Act Came into Force on the 1st Of July, 1930; extending to Whole of the India Except Jammu and Kashmir.
  • 3. CONTRACT OF SALE:  Section 4(1) of the Sale of Goods Act,1930 Defines the Term “Contract of Sale” as- 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.  The Contract of Sale Can be Clubbed in Two Types: : SALE : AGREEMENT TO SELL
  • 4. MEANING OF: SALE: It is a Contract where the ownership in the Goods is Transferred by the Seller to the Buyer Immediately at the Conclusion Contract. AGREEMENT TO SELL: It is a contract of sale where the transfer of property in Goods is to take place at a future date or subject to some condition thereafter to be fulfilled.
  • 5. ESSENTIALS OF A CONTRACT OF SALE:  There must be at-least Two Parties.  The Subject Matter of the Contract Must be Goods.  Price.  Transfer of Property in Goods.  Absolute or Conditional.  All Other Essentials of a Valid Contract.
  • 6. DIFFERENCE BASIS SALE AGREEMENT TO SELL 1. TRANSFER OF PROPERTY The Property of Goods Passes from the seller to the Buyer immediately. So the seller is no more owner of the Goods sold. It is an Executed Contract. The transfer of property of the Goods is to take place at a future time or subject to certain conditions to be fulfilled. It is an executory contract. 2. TYPE OF GOODS A sale can only be in-case of existing and specific Goods only. An Agreement to sell is mostly in-case of future and contingent goods. Although it may refer to uncertain existing goods. 3. RISK OF LOSS In a Sale, If the Goods Are Destroyed, the loss falls on the buyer even though the goods are in the possession of the seller. In an agreement to sell, if the goods are destroyed, the loss falls on the seller even though the goods are in the possession of the buyer.
  • 7. BASIS SALE AGREEMENT TO SELL 4. CONSEQUENCES OF THE BREACH In a sale, if the buyer fails to pay the price of goods or if there is a breach in the contract, the seller can sue for the price even though the goods are still in his possession. If there is a breach of contract by the buyer, the seller can only sue for the damages and not for the price. 4. RIGHT TO RE-SELL The seller cannot resell the goods. The buyer who takes the goods for consideration and without notice of the prior agreement gets him a good title. The original buyer can only sue he seller for damages 5. GENERAL AND PARTICULAR PROPERTY The sale of contract plus conveyance, creates “Jus in Rem”, ie: Give right to the buyer to enjoy the goods as against the word and large including the seller. An agreement to sell is merely a contract, pure and simple and creates “jus in personam”,ie: Gives a right to the buyer against the seller to sue for the damages
  • 8. BASIS SALE AGREEMENT TO SELL 7. INSOLVENCY OF THE BUYER In a sale, if the buyer becomes insolvent before he pays for goods, the seller in the absence of the lien over the goods, must return them to the official receiver or assignee. He can only claim the reteable dividend for the price of the goods. If the buyer becomes insolvent, and has not yet paid the price, the seller is not bound to part with the goods until he is paid for. 8. INSOLVENCY OF THE SELLER If the seller becomes insolvent, the buyer being the owner is entitled to recover the goods from the official receiver of the assignee. If the buyer who has paid the price, finds that the seller has become insolvent, he can only claim a reteable dividend and not the goods because property in them has not yet
  • 10. Cehave N.V. v. Bremer Handelsgesellschaft mbH; the Hansa Nord [1976] Q.B. 44. Summary of the fact: A written contract to sell fruit pellets contained the express stipulation, “shipment to be made in good condition.” In fact, some of the pellets were not in good condition when shipped. However, they were, on arrival, still fit to be used for the purpose the buyer had intended and although they were worth less than they should have been, they could still have been re- sold at a reduced price. Issue: 1.Whether there is a breach of condition? 2.Whether the buyer is entitled to repudiate the contract and reject the goods?
  • 11. Contd. Decision: It was held that there was no breach of condition and the buyer was not entitled to repudiate the contract and to reject the goods. But the buyer is entitled to damages. Reasoning: The sellers were not in breach of the implied conditions as to fitness for purpose and merchantable quality. The express stipulation in the contract was not a condition and the sellers’ breach of it had not been serious enough to go to the root of the contract. Therefore the buyers were entitled only to damages.
  • 12. Rowland v. Divall [1923] 2 K.B. 500. Summary of fact: Rowland bought a motor-car from Divall and used it for four months. Divall had no title to the car, and consequently Rowland had to surrender it to the true owner. Rowland sued to recover the total purchase price he had paid to Divall. Issue: 1.Whether there is a breach of condition? 2.Whether the buyer is entitled to recover the total purchase price?
  • 13. Decision: It was held that there is a breach of implied condition as to title by the seller and therefore the buyer is entitled to recover the purchase price in full, notwithstanding that he used the car for four months. Reasoning: There was a breach of condition. Consequently the buyer can repudiate the contract and reject the goods. But in this case the car was already taken by the real owner; hence no question of rejection of goods arises. Therefore, the buyer can repudiate the contract by taking back the full purchase money as damages due to the breach of condition. The consideration had totally failed on the part of the seller. The use of the car that he had had was no part of the consideration that he had contracted for, which was the property in and lawful possession of the car, whereas what he got was an unlawful which exposed him to the risk of an action at the suit of the true owner.
  • 14. Beale v. Taylor [1967] 1 W.L.R. 1193. Summary of the fact: A buyer responded to an advertisement describing a car for sale as a “1961” model. He inspected the car before buying it. After buying it he discovered that the car consisted of half a 1961 model and half of an earlier car. Issue: 1.Whether there was a breach of implied condition as to description? 2.Whether the buyer was entitled to reject the car?
  • 15. Contd. Decision: It was held that the seller was liable for breach of condition as to description and the buyer is entitled to reject the goods thereby. Reasoning: The buyer had relied at least to some extent on the description of the goods which becomes a condition. Therefore dissimilarity with the description of the delivered goods caused the breach of such condition.
  • 16. Nichol v. Godts (1854) 10 Ex. 191 Summary of the Fact: Nichol agreed to sell to Godts some oil described as “foreign refined rape oil, warranted only equal to sample.” Nichol delivered oil equal to the quality of the samples, but which was not “foreign refined rape oil.” Issue: 1.Whether a breach of condition has occurred? 2.Whether the buyer is entitled to refuse the goods?
  • 17. Contd. Decision: It was held that breach of condition occurred and Godts could refuse to accept the goods. Reasoning: Where there is a sale of goods by sample as well as by description, the goods must correspond with the description as well as sample. Here the goods corresponded with the sample but not with the description.
  • 18. Re Moore & Co. v. Landauer & Co. [1921] 2 K.B. 519 Summary of Fact: Moore sold to Landauer 3,100 cases of Australian canned fruits, the cases to contain 30 tins each. Moore delivered the total quantity, but about half the cases contained 24 tins, and the remainder 30 tins. Landauer rejected the goods. There was no difference in market value between goods packed 24 tins and goods packed 30 tins to the case. Issue: 1.Whether a breach of condition has occurred? 2.whether the buyer is entitled to reject the goods/
  • 19. Contd. Decision: It was held that Landauer could reject the whole goods as there was a breach of condition. Reasoning: As the goods delivered did not correspond with the description of those ordered.
  • 20. Brown (B.S.) & Son Ltd. V. Craiks Ltd. [1970] 1 W.L.R. 752 Summary of fact: The buyer of “industrial fabric” found that it was unsuitable for making into dresses but that it was suitable for other industrial purposes; as such it was commercially saleable, though at a slightly reduced price. Issue: 1.Whether the goods were of merchantable quality?
  • 21. Decision: It was held that the goods were of merchantable quality. Reasoning: The goods could be used for some other purposes and it had commercial value. Therefore it meets the demand of merchantable quality. If the goods supplied are useless for any purpose for which goods of that description are usually used then they are probably not of merchantable quality. On the other hand, if they are still suitable for some of the purposes for which goods of that description are usually used and could be re-sold for the same or very nearly the same price as if they were suitable for every purpose, they will remain of merchantable quality.

Editor's Notes

  1. Address the media and public as soon as possible. Do not stonewall the facts. The longer disclosure is delayed, the more damage is done to the company's image.The company spokesperson must deal with the media and public with complete candor. The media will eventually reveal any distortions or omissions of truth – that's their job.Conceal none of the facts. The media will eventually uncover anything concealed - that's also their job.Retain competent legal counsel if necessary.
  2. AIR all in report- to study to case
  3. Hansanord is a place, in GermanyQb is queen benchRepudiate ---refuse to accept; reject.
  4. KB is kings bench
  5. Weekly Law Reports. WLR
  6. Ex parte- all imp
  7. Weekly Law Reports. WLRCitation (year to end)