1) The document discusses key concepts from the Sale of Goods Act of Bangladesh including definitions of a buyer, seller, price, delivery, goods, contracts of sale, implied conditions, and warranties. 2) It explains important distinctions such as between a sale versus an agreement of sale, conditions versus warranties, and when conditions can be treated as warranties. 3) Examples are provided to illustrate concepts like caveat emptor, ascertainment of price, and implied conditions regarding title, description, and samples.

1. MY Presentation
Presented By ‘Ishak’
ID # 11302026

2. Sale of Goods Act, 1930
(Bangladesh)

3. Table of Contents
 What is a Sale?
 Why the Sale of Goods Act is important
 Buyer, Seller, Price
 Delivery & Deliverable State
 Goods
Specific Goods
Future Goods
 Contract of Sale
 Caveat Emptor
 Sale and Agreement of Sale
 Offer and acceptance
 Method of Contract
 Existing and future goods
 Goods perishing before making of contract

4. Table of Contents
 Ascertainment (deciding the price) of Price
Price ascertained by joint agreement or by the course of dealings
Ascertainment of Reasonable Price
Ascertainment of price as by third parties
 What is Condition?
 What is warranty?
 When condition to be treated as warranty
Voluntary Waiver
Compulsory Waiver
 Condition as to title
 Sale by description
 Sale by sample

5. What is a Sale?
A Sale is the act of selling a product or services in return for
money or other compensation.

6. Why the Sale of Goods Act Important?
The Sale of Goods act is a very important and relevant legislation to understand in
order to avoid the problems many consumer faces when they make purchases.
It is advised to know what rights you have and how you can resolve the situation in
case of any issue.
 Short title, extent and commencement
1. This act may be called the 2** Sale of Goods Act, 1930
2. It extends to the whole of Bangladesh
3. It shall come into force on the first day of July, 1930

7. Buyer, Seller, Price
Buyer:
A person who buys or agrees to buy goods. (clause:2-1)
Seller:
A person who sells or agrees to sell goods. (clause:2-13)
Price:
The money consideration for a sale of goods. (clause:2-10)

8. Delivery & Deliverable State
Delivery:
Voluntary transfer of possession from one person to another.
(clause:2-2)
Deliverable State:
Goods are said to be in a “deliverable state” when they are in
such state that the buyer would under the contract be bound to
take delivery of them. (clause:2-3)

9. Goods
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. (clause:2-7)

10. Goods
Specific Goods:
It means goods identified and agreed upon at the time a contract
of sale is made. (clause:2-4)
Future Goods:
It means goods to be manufactured or produced or acquired by
the seller after making the contract of sale. (clause:2-6)

11. Contract of Sale
1) 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. Clause:4-1
2) A contract of sale may be absolute (The way it is) or conditional. Clause: 4-
2
Example: Karim has a horse. Karim hands over the horse to Rahim for the
amount of 20000Tk or karim agrees to hand over the horse to rahim within
three(3) days. For both party this is an example of Contract for sale of
goods

12. Caveat Emptor
 [Latin, Let the buyer beware.] A warning that notifies a buyer that the
goods he or she is buying are "as is," or subject to all defects.
 When a sale is subject to this warning the purchaser assumes the risk that
the product might be either defective or unsuitable to his or her needs.
It merely summarizes the concept that a purchaser must examine, judge, and
test a product considered for purchase himself or herself.
Example :- Karim went to market and purchased a bike to take a part in Bike
race competition. But he did not tell the seller that for which purpose he is
buying. When he reached home, he came to know that this bike is not suitable
for bike race competition. Due to the principal of Caveat Emptor Mr. Karim
can neither reject the bike nor can claim for compensation.

13. Sale and Agreement of Sale
 Where under a contract of sale the property in the goods is transferred from the seller
to the buyer, the contract is called a sale, but where the transfer of the property in the
goods is to take place at a future time or subject to some condition thereafter to be
fulfilled, the contract is called in agreement to sell. Clause: 4-3
 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. Clause: 4-4
Example: Karim sells 50 kg of rice to Rahim for an amount. Or Karim accepts money from
Rahim and promises that Karim will send Rahim 50 kg of rice within three(3) days. Those
Two(2) examples are the example of Sale and Agreement of Sale.

14. Offer and acceptance
A contract of sale is made by an offer to buy or sell goods for a
price and the acceptance of such offer. The contract 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.
Clause: 5-1

15. Method of Contract
Subject to the provisions(law) 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 party by word of mouth or may
be implied from the conduct of the parties. Clause: 5-2

16. Existing and future goods
(1) Goods present at the time of transaction with the seller
(2) Future Goods means goods to be manufactured or produced
by the seller after the making of the contract of sale Clause: 6-2

17. Goods perishing before making of contract
Where there is a contract for the sale of specific goods, the contract is void
(cancelled) if the goods without the knowledge of the seller have, at the time when
the contract was made, perished or become so damaged as no longer to answer to
their description in the contract. Clause: 7
 Example: Karim wants to import 100 tons of onions from Rahim. Those Onions
was suppose to come to Bangladesh by a Ship from India. Rahim is the Onion
merchant here.
 Both parties (Rahim and Karim) make a contract of sale of those Onions.
 But when Rahim (the seller) goes to his warehouse to get those onions to put
them in a ship Rhaim finds that all the onions got rotten in the warehouse without
his knowledge and Which was unknown to Rahim. In this case that contract will
be void(cancelled).

18. Ascertainment (deciding the price) of Price
Price ascertained by joint agreement or by the course of dealings:
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. Clause: 9-1
Example: Rahim purchases two tons of wheat from Karim in the
month of May. But it was decided by them that the price of those
wheat will be decided by them on the 1st of July according to the
market value as of July 1st.

19. Ascertainment of Reasonable Price
 Where the price is not determined in accordance (according to) with the
foregoing (previous) provision (condition), the buyer shall pay the seller a
reasonable price.
 What is a reasonable price is a question of fact dependent on
the circumstances of each particular case. Clause: 9-2
Example: Rahim delivered two tons of wheat from Karim on May 1st . But
when Karim purchased those wheat from Rahim the price of those wheat was
not fixed. In this case the price of those wheat will be fixed as the market price
of wheat as of May 1st.

20. Ascertainment of price as by third parties
(1) 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: Clause:
10-1
Provided that, if the goods or any part of the good thereof have been delivered
to the buyer and appropriated (use/taken) by the buyer, he (the buyer) shall pay
a reasonable price thereof. But
1) Where such third party is prevented (obstructed) 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. Clause: 10-2

21. What is Condition?
A condition is a stipulation/conditions essential to the main
purpose of the contract the breach (break)of which gives to right
to treat the contract as repudiated (Reject).Clause: 12-2
 Example: Karim wants to buy some furniture. He goes to a
furniture shop and says to the furniture shop owner that Karim
will only purchase furniture’s from the furniture shop only if
the seller provides Furniture’s to Karim made of Segun
Wood.
 In this case the “ Segun Wood” is the Condition (main
requirements) in case of purchasing furniture from the seller.

22. What is warranty?
According to Sale of Goods Act, 1930 A warranty is a stipulation collateral to the main purpose of the
contract, the breach of which (collateral) gives rise to claim for damages but not to a right to reject the
goods and treat the contract as repudiated.
Clause: 12-3
Example: Karim wants to buy some furniture. He goes to a furniture shop and says to the furniture shop
owner that Karim will only purchase furniture’s from the shop only if the seller provides Karim
Furniture’s made of “Good Wood”.
 The seller assures Karim that Karim will receive furniture from the seller made of Segun Wood.
And an agreement was made between them.
 But on the time of delivery of the furniture’s Karim finds out that the furniture’s were not made of
Segun wood they were made of Korai tree wood.
 In this case Karim must accept the fact that the seller has broken the secondary conditions not the
primary conditions of the sell.
 In this case Karim may claim for damages but cannot reject the goods and treat the contract as
repudiated(reject) Because Karim did not mention specifically in the contract that the seller musr
provide Segun Wood furniture otherwise the contract will be void.

23. When condition to be treated as warranty
Voluntary Waiver (1) Where a contract of sale is subject to any condition to be
fulfilled by the seller, the buyer may waive the condition or elect to treat the breach
of the condition as a breach of warranty and not as a ground for treating the
contract as repudiated. Clause: 13-1
 Example: An agreement of sale is made between a buyer and seller that certain
product will be delivered by the seller to the buyer by May 1st . And this date
May 1st was fixed by the seller, But in reality the product was delivered to the
buyer on May 2nd.
 Here the buyer instead of cancelling the contract make a claim against the
seller for any damage done to the buyer for not delivering him the product on
time

24. When condition to be treated as warranty
Compulsory Waiver: Where a contract of sale is not severable(unbreakable by the buyer)
If a buyer has accepted goods or part of goods thereof the breach of any condition that suppose to be
fulfilled by the seller can only be treated as a breach of warranty and not as a ground for rejecting the
goods and treating the contract as repudiated, unless there is a term of the contract, express or implied, to
that effect. Clause: 13-2
 Example:
 Karim makes an agreement with a car garage that the car garage will provide Karim a complete
“Motor Engine” to run his car.
 The car garage provides Karim half of the motor engine and keeps on delaying to provide the other
half of the engine to Karim.
 Since half of the motor engine was provided to karim and karim also accepted that half of the engine
but the car garage by delaying the delivery of the other part of the engine actually breached the
conditions
 But Since Karim has accepted the half of the engine he can not reject the contract with the garage Karim can only claim
for monetary damage for the delay delivery.

25. Condition as to title
There is an implied condition on the part of the seller that, in the case of sale, he
has a right to sell the goods and that, in the case of an agreement to sell, he will
have a right to sell the goods at the time when the property is to pass. Clause: 14-A
On the other hand it is said that: If someone sales anything by not being the
owner of those things in such case the buyer can reject the contract.
 Example: Karim purchases a car from Rahim and use the car for eight months.
Later Karim finds out that Rahim is not the original owner of the car, Jamal is.
 In that case Jamal will get the car back from Karim and Rahim will give the full
amount money taken from Karim to Karim.

26. Sale by description
Where there is a contract for the sale of goods by description
there is an implied condition that the goods shall correspond
with the description.
Clause: 15
Example :- Mr. Rahim sells butter to Mr. Karim saying that it
is a pure butter and there is nothing mixing in it. When Mr.
Karim uses it, he comes to know that there is adulteration in it.
Now Mr. Rahim will be held responsible.

27. Sale by sample
A contract of sale is a contract for sale by sample where there is a term in the
contract, express or implied, to that effect.
(a) That the bulk shall correspond with the sample in quality; that is the product
must match as described earlier.
(b) that the buyer shall have a reasonable opportunity of comparing the bulk with
the sample; That is the buyer must be given enough time to match the product
with the sample.
(c) that the goods shall be free from any defect, rendering them un merchantable,
which would not be apparent on reasonable examination of the sample. That is
the product must be supplied as the sample. No fault can be there. Clause: 17