The document provides an overview of key concepts in the Sale of Goods Act in India. It defines important terms like buyer, seller, and goods. It distinguishes between a sale and an agreement to sell, and outlines the essentials of a contract of sale. It also discusses conditions and warranties, the rights of unpaid sellers, and rules regarding sale by auction.

1. SALE OF GOODS ACT
Group Members :  Rohit Dhoundiyal
 Mandar Kundaikar
 Rohit Koli
 Roshani Bharati
 Suchit Agawane

2. Introduction
 Sale of Goods Act came into force on 1st July, 1930.
 Initially was a part of Indian Contract Act, but later these
sections were deleted.
 Sale of Goods Act is complementary to Indian Contract Act.
 Basic
requirements of Contract Act i.e. offer &
acceptance, mutual consent, competent parties, free consent
etc; apply to Contract of Sale of Goods Act.
 The scope of this Act is only a regards movables other than
actionable claims and money.

3. IMPORTANT LEGAL TERMS
 U/S – 2(1) Buyer is :
“ A person who buys or agrees to buy ”.
 U/S – 2(13) Seller is :
“ A person who sells or agrees to sell ”.
 U/S – 2(7) Goods as :
“ Every kind of moveable property other than
actionable claim and money; and includes stocks &
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 ”.

4. CONTRACT OF SALE
 U/S – 4(1)
“Contract of sale is a contract whereby, a seller
transfers or agrees to transfer the property or goods to the
buyer for a price”.

5. ESSENTIALS OF A CONTRACT OF SALE
Number
of Parties
Essentials
of a
Contract
Goods
Sale of
Goods
Act
Form
Absolute or
Conditional
Transfer
of Parties
Price

6. AGREEMENT OF SALE
 U/S – 4(3) Agreement of Sale states :
“Where under a contract of sale the property in the
goods is to take place at a future time or subject to some
conditions thereafter to be fulfilled, the contract is called
an agreement to sell”.

7. DISTINCTION
CRITERIA
SALE
AGREEMENT TO SELL
Definition
As specified before
As specified before
Transfer of
ownership
Takes Immediately
Future time or subject to fulfilment
of some conditions
Type of contract
Executed
Executory
Transfer of Risk
Immediately Transfers
Doesn‟t Transfers
Right of seller
against buyer‟s
Breach
Seller can sue the buyer for the
price, even though the goods are
in his possession
Seller can sue the buyer for damages
even though the goods are in the
possession of the buyer
Right of buyer‟s
against seller‟s
Breach
Can sue the seller for the
damages and can sue the 3rd
party who bought those goods
for goods.
Buyer can sue the seller for the
damages only.

8. CONDITIONS
 U/S – 12(2) Condition is :
“A stipulation essential to the main purpose of the
contract, the breach of which gives rise to a treat the contract
as repudiated”.
Hence, from the definition it is clear that condition is an
representation forming the core of the contract. And if it is not
true, the buyer can terminate the contract.
E.g. „A‟ buys from „B‟, a hair oil advertised as a pure coconut
oil. The oil turns out to be mixed with herbs. „A‟ can return the
oil and claim the refund price

9. Types of
Condition
Express
Conditions
Implied
Conditions
as to title
as to
description
as to sample
as to quality

10. WARRANTIES
 U/S – 12(3) Warranty is :
“A stipulation collateral to the main purpose of the
contract, the breach of which gives rise to a claim for damages
but not to a right to reject the goods and treat the contract as
repudiated”.
Warranty is only a collateral or subsidiary stipulation, hence
breach of a warranty will give a right only to claim damages
from the seller but not a right to reject the goods.

11. Types of
Warranty
Implied
Warranty
Express
Warranty
As to quiet
possession
As to
freedom from
encumbrance
Disclose
dangerous
nature of
goods

12. UNPAID SELLER
 U/S – 45 Unpaid Seller is :
“One who has not been paid or tendered the whole of
the price or one who receives a bill of exchange or other
negotiable instrument 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”.

13. Rights of an
Unpaid Seller
Against the
buyer
Against
goods
Suit for Price
Where the property
in goods has not
passed to the buyer
Where the property
in goods has passed
to the buyer
Right on
Lien
Right of
stoppage in
transit
Suit for
Damages
Right of
resale
Withholding
delivery of
goods
Other
remedies
Suit for
Interest

14. SALE BY AUCTION
 Auction sale means a public sale where the intending
buyers come together at a particular place and quote the
price at which they are willing to buy the goods.
 The price at which the person is offering is called „Bid‟
and the person offering the price is called the „Bidder‟.
 Goods is sold to the highest bidder.

15. RULES REGARDING SALE BY AUCTION
 A contract of sale is complete when the auctioneer
announces its completion by the fall of the hammer.
 The bidder may withdraw the bid before the
announcement of the completion of sale.
 The seller has the right to sell the goods subject to
“Reserve price”. Reserve price is the minimum price
below which the auctioneer will not sell the goods.