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BySurajit Goswami Sundeep Tiwari Maruthu Pandian Kishan Gupta Jaydeep Modi Group no- 5
law as to the sale of goods was originally embodied in sections 76 to 123 of the Indian Contract Act, 1872. There were many complexities in growing mercantile transaction so it was repealed and Sale of Goods Act, 1930 took birth. It is well-known that our Sale of Goods Act, 1930 is based upon and is largely a re-production of English Sale of Goods Act, 1893.
sale of Goods Act applies only to movables other than actionable claims and money and not to immovable which are governed by Transfer of Property Act, 1882.
means every kinds of moveable property other than actionable claims and money and includes stock and shares, growing crop, grass and things attached, to or forming part of the land agreed to be severed before sale or under the contract of sale.
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. A contract of sale may be absolute or conditional. Absolute contract is without any conditions. Conditional contract may be a contract with condition precedent or condition subsequent. A contract of sale of goods may be either be either a sale or an agreement to sale.
SALE
When
under a contract of sale the property of sale is transferred from seller to the buyer, the contract is called a sell. Resale of goods is also sale of goods. A second sale is a resell. Resell may be to third person or the original seller.
AGREEMENT TO SELL
Where
transfer of the property, for example, ownership in the goods is to taken place at a future date or subject to some condition to be fulfilled, the contract is called an agreement to sell. When agreement to sell becomes agreement of sale? An agreement to sell becomes a sell when times lapses or the condition are fulfilled subject to which the property in the goods is to be transferred.
must be two parties:- Atleast 2 or more people are involved in a sell, a person cannot sell goods to himself. Transfer of property:- In a sell there should be transfer of a some type of property, a sell means give and take. By writing or by word of mouth:- A sell should take place either by writing or by word of mouth, expressed means by action, by sign language a sell cannot take place. Consideration for a sale of goods must be money:- Today barter system has no existence, so whenever a sale takes place there should be money as a medium of transaction. Includes both an actual sale and agreement to sell:- In a valid sell either an actual sale is there or an agreement to sell is there, no vague transaction is called a sale.
and acceptance. Delivery. Ascertainment of price. Goods. Contract. Amount of increased and decreased tax to be added or deducted (sec 64 A)
Condition: A condition is a stipulation essential to the main purpose of the contract, breach of which gives right to treat the contract as repudiated or broken.
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 to a right to reject the foods and treat the contract as repudiated or broken.
Warranty as to title (sec 14) Sale by description (sec 15) Sale by sample (sec 17) Sale by sample as well as by description (sec 15) Warranty as to quality or fitness (sec 16) Warranty as to quiet possession free from encumbrances [sec (A) (B) (C)]
Condition Essential Affects the legality of contract May be treated as breach of warranty Contract can be cancelled
CAVEAT EMPTOR
Caveat emptor means" let the buyer beware ex. the buyer must take care. Exception
or usage of trade. Fraud : seller is guilty of fraud, he is liable. For specific purpose. Merchantable quality : Where (1) sale is by description & (2) purchased form the seller deals in goods of that description, implied condition is that the goods are of merchantable quality.
Custom
UNPAID SELLER
Who is an unpaid seller? A seller of the goods is deemed to be an unpaid seller when:
The whole of the price has not been paid or tendered. A bill of exchange or other negotiable instrument has been received as conditional payment.
When the property in the good s has passed to the buyer. When the property in the goods has not passed to the buyer.
When the property in the goods has not passed to the buyer:
AUCTION SALES
Implied warranties in an auction sale (1) Auctioneer warrants his authority to sell. (2) He warrants that he knows of no defect in principals title. (3) He warrants to give quiet and peaceful possession of goods against payment of the price. Knock-out agreement A knock-out agreement means an agreement between a group of persons not to bid against each other.
6. To sue the seller for damages for breach of warranties. 7. To sue the seller for specific performance of the contract. 8. In case of breach of contract by the seller, when the buyer sue for the refund of the price, the buyer has a right to claim the amount of price paid from the date on which the payment was made.
Duties: 1. 2.
3.
To pay for the goods and take delivery thereof. To apply for the delivery of goods as the seller is not bound to deliver the goods until the buyer applies for delivery. To compensate the seller for any loss occasioned by his neglect or refusal to take delivery of the goods and also reasonable charge for care and custody of goods.
5. To recover interest from the buyer if there is specific agreement to that effect or change interest on the price when it become due. 6. To sue for the price of the goods. 7. To sue for the damages on buyer repudiating the contract.
Duties:
1. To deliver the goods when buyer demands the delivery thereof. 2. To compensate the buyer incase he repudiates the contract or commits breach of the contract. 3. To give reasonable opportunity to the buyer to examine the goods. 4. To refund the amount paid by the buyer incase he fails to deliver the goods. 5. To compensate the buyer incase of delivery of wrong quantity.
Buyer
DELIVERY TO CARRIER
Carriage by sea : 1) C.I.F(Cost insurance freight) Contracts 2) F.O.B(Free on Board) - Contracts 3) Ex - ship contracts: Seller has to deliver the goods after the arrival of the ship. Seller has to pay freight. The goods are at the seller's risk during the voyage.
Suit for damages for non-delivery of the goods. Suit for specific performance. Suit for breach of warranty. Suit for repudiation of the contract-anticipatory breach.