A full fledged ppt on sale of goods act. includes sale, agreement to sell, conditions and warranties.

1. Sale of Goods
Act

2. Contents
Contract of sale and agreement to sell
Conditions and warranties,
Rules for passing of property,
Transfer of property and title,
Rights of unpaid seller,
Performance of Contract,
Suit for breach

3. INTRODUCTION
The law relating to sale and purchase of goods,
prior to 1930 were dealt by the Indian Contract
Act, 1872.
In 1930, Sections 76 to 123 of the Contract Act was
repealed and a separate Act known as the Sale of
Goods Act, 1930 was passed
This act lays down special provisions governing the
contract of sales of goods .The general law of
contract is also applicable to the contracts for the
sale of goods unless they are inconsistent with the
express provisions of the Sale of Goods Act

4. GENERAL PRINCIPLES
MEANING OF CONTRACT
OF SALE
+ According to Section 4 of the Act, a contract of Sale means “a contract
where the seller transfers or agrees to transfer the property in goods to the
buyer for price”
+ Contract of Sale may be of two types
+ CONTRACT OF SALE
+ AGREEMENT TO SELL

12. INTRODUCTION :
In every contract of sale of goods there are certain stipulations made with reference
to goods which are the subject-matter thereof. Such stipulations differ in character
and importance. The clause divides stipulations into conditions and warranties.
Condition:
“A condition is a stipulation essential to the main purpose of the contract, that
breach of which gives a right to treat the contract as repudiated.”
Warranty:
“A 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 a right to reject the
goods and treat the contract as repudiated”.

15. WHEN A CONDITION CAN BE TREATED AS
A WARRANTY :
By Waiver
By acceptance

16. WHEN A CONDITION CAN BE TREATED AS
A WARRANTY :
Example: B agrees to buy from A 20 bales of cotton by sample.
The cotton is delivered to B who makes payment of its price. B
upon examination of cotton finds them not equal to sample but
uses 2 bales and sells 3. At this point he cannot rescind the
contract and recover the price. But A is bound to compensate for
the loss caused to B by breach of warranty.

17. CONDITIONS :
EXPRESS
CONDITIONS
IMPLIED
CONDITIONS

18. Express conditions:
Express conditions are those, which
are agreed upon between the parties
at the time of contract and are
expressly provided in the contract.

19. Implied Conditions:
It is a condition, which the law implies into the contract of sale. The law
presumes that the parties have incorporated it into their contract.
The implied conditions are read into every contract of sale unless they
are expressly excluded by the parties.
In case of conflict between the express and implied conditions, the
express term shall prevail and the implied terms shall not be considered.

20. Implied Conditions as to title:
1. According to this condition, it is presumed that the seller has a valid title to the
goods, i.e., he has the right to sell the goods. If later on, the buyer comes to
know that the seller had no valid right to sell the goods, then he may reject the
goods and claim the refund of the price, if already paid.
2. This implied condition may be analysed as under:
(i) In case of sale, the implied condition is that the seller has the right to
sell the goods, and
(ii) In case of an agreement to sell, the implied condition is that the
seller will have the right to sell the goods at the time when the
ownership is to pass from the seller to the buyer.
Case law: Niblett vs. Confectioners Material co. ( Nestle / Nissly )

21. Condition as to description:
1. Sometimes, the goods are sold by description. In such cases,
the implied condition is that the goods shall correspond with
the description.
2. The term ‘correspondence with description’ means that the
goods purchased by the buyer must be the same which were
described by the seller.
3. If subsequently, it is discovered that the goods do not
correspond with the description, the buyer may reject the
goods and claim the refund of the price, if already paid.

22. Condition as to sample:
1. In case of sale of goods by showing the sample to the buyer,
there are following three implied conditions,
(i) That the goods delivered shall correspond with the
quality of the sample
(ii) That the buyer shall have a reasonable opportunity of
comparing the bulk with the sample.
(iii) That the goods shall be free from latent defects (i.e., the
defects which are not discoverable on reasonable
examination of sample) Godley vs Perry (toy case)

23. Condition as to sample as well as description
Sometimes, the seller shows sample of the goods to the buyer and
also gives him their description. In such cases, the implied
condition is that the goods shall correspond with both, the sample
as well as description.
Case law: Wallis vs Pratt ( sainfoin seeds case)

24. Condition as to quality or fitness for buyer’s
purpose:
1. There is an implied condition that the goods shall be fit for the
buyer’s specific purpose.
2. In following cases, seller is responsible to the buyer:
(i) If the buyer makes his purpose clear to the seller.
(ii) If the buyer buys the goods ‘relying upon his skill and
judgment’.
(iii) The goods are of a description which it is in the course of the
sellers business to supply.

25. Condition as to merchantability:
The term ‘merchantability’ has not been defined in the Sale of Goods Act.
However, it has been interpreted by the courts, and basically it means the
two things, namely, If goods are purchased for
1.Self use
2.Resale

26. WARRANTIES
EXPRESS
WARRANTIES
IMPLIED
WARRANTIES

27. Implied Warranties:
It is a warranty, which the law implies into the contract of sale. The law
presumes that the parties have incorporated it into their contract.
The implied warranties are read into every contract of sale unless they
are expressly excluded by the parties.
In case of conflict between the express and implied warranties, the
express term shall prevail and the implied terms shall not be considered.

28. 1. Warranty as to quiet possession:
Where the buyer has obtained the possession of the goods, he
has a right to enjoy them in a way he likes, i.e., no one should
interfere with the quiet enjoyment of the buyer.
If buyer’s right of possession and enjoyment is disturbed by
anyone, then the buyer can recover damages from the seller.

29. 2. Warranty as to free from encumbrance
In every contract of sale there is an implied warranty that the
goods sold shall be free from any charge. If the possession of
the buyer is disturbed due to such charge in favour of third party,
he can claim damages from the seller.

30. Disclosure of dangerous nature of goods:
• There is another implied warranty on the part of the seller that
in case the goods are inherently dangerous, or they are likely to
be dangerous to the buyer and the buyer is ignorant of the
danger, the seller must warn the buyer of the probable danger.
• If there is breach of this warranty, the seller will be liable in
damages.