Description
Act consolidates the original Sale of Goods Act 1893 and subsequent legislation, which in turn had codified and consolidated the law. Since 1979, there have been numerous minor statutory amendments and additions to the 1979 Act, and a new consolidated Act is overdue.
Meaning :
? Meaning : A contract of sale of goods, is contract
whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price / monetary consideration. ? Sale and agreement to sale : Sec 4 (3) ? Where in there is a contract of sale of goods, but the physical transfer of goods is yet to take place or on some conditions the goods is intended to transfer.
Essentials of contract of Sale
? Two Parties
? Goods must be the subject matter ? Transfer of property
? Monetary benefit, must be the consideration
? Contains of all essentials of valid contract ? Contract of sales includes the agreement to sale
also.
Distinction of Contract to sale and Agreement to Sale Sec 4 (3)
? CS - (Meaning)-Transfer of property is done from seller to buyer. ? AS – Transfer of property is to take place in future or subject to some
conditions.
? CS-(Nature of contract)-It is executed contract. ? AS – Executory contract.
? CS – (Nature of Property / goods)-Existing and specific goods only. ? AS- Mostly such a contract takes place with future goods or contingent
goods.
? CS –(Ownership transfer) Goods possession is given immediately
after sale. ? AS – Yet to take in future / Not actual transfer or with some conditions
Cont.……..
Distinction of Contract to sale and Agreement to Sale- Sec 4 (3)
? CS-(General /Property) It implies a contract plus transfer of ? ? ? ?
?
? ?
ownership who became a absolute owner of the goods. Jus in rem (Right to against the whole world) AS-Mere contract to sale (agreement) is executed which secures buyer only jus in personam (Right against the particular individual) Buyer can sue against seller for the damages CS : (Remedies) Sue for the price, Right of lien, Stoppage in transit. AS: Seller has got right to sue against damages. CS : (Insolvency of buyer before he pay the debts) Seller got a right to sue, stoppage of goods in transit or resale of goods. AS : Seller has got a right only sue against damages for nonperformance of contract. CS: (Right of release ): Can not resale the goods AS: Right to resale, as per his will and wish can dispose off.
Conditions & Warrantee - Sec 12
? A contract of sale may consist of number of stipulations
(Terms/conditions)All such stipulations may not be equal importance. Some of them may be so important that nonperformance of such stipulations may amount to breach of contract. Such stipulations are called “condition”. ? These stipulations always use to be major. ? It is essentials for main purpose of contract. Breach of the condition right to reject the goods. ? The stipulations in contracts of sale regarding quality and quantity of goods. Its colour and design, packing of delicate items, valuable and breakable goods etc, are considered as a condition.
Warrantees
? There are certain stipulations which are not a vital
importance .They are called “Warranties”. ? These stipulations always use to be minor , very essential and negligible. Breach of warranty will not effect to the extend to cancel the contract. ? The stipulation may collateral (Security/Guarantee) to the contract but may not that important like conditions. The aggressive party may suit claims for the damages but can not repudiate (Cancel/Reject) the sale agreement or contract of sale.
Difference between Condition and warranty
? A) Condition is a stipulation which is essential to the main purpose of
the contract of sale. ? Warranty is a stipulation which is only collateral to the main purpose of the contract of sale.
? B)
C-Difference to Breach –Aggressive party has right to sue or claims for damages, contract can be cancelled. ? W- Only right to sue is available but contract can not be cancelled.
? C)
C-(Essence(real/core) of contract of sale)condition always goes to root of the contract, it is of fundamental nature, Main purpose of contract can not fulfill with the particular stipulation. ? W- warrantee can not go to root of the contract, it is of subsidiary nature . Fulfillment of contract does not mean the fulfillment of warrantee.
Difference between Condition and warranty
? D) C- Damages- If there is a breach of Condition, a
buyer has an option to claim damages instead of repudiating the contract ? W- If there is a breach of warrantee buyer can not repudiate the contract but can claim against the damages.
Implied conditions
? A) Conditions as to clear title (True owner) -Sec 14 (a) ? LS_-Rowland Vs Divall,(1923) car Sold with out title and held
? ? ? ? ?
?
?
responsible to pay the damages. B) Condition as to sale by description (Section 15) L_S – Shephared Vs Kain-Ship was told cooper fastened but physically it was partially quoted C) Condition as to sale by description as well as sample. D) Condition as to sale by sample only. Sec-17 E) Condition as to sale by quality or fitness. Sec 16 (1) L_S- Priest Vs Last (1908)Hot bottle was sold by seller with guarantee of quality of fitness, But got burst and wife injured F) Conditions as to sale by merchantability L_S- Gardner Vs Grey – Item must Saleable in the market. G) Condition as to wholesomeness Sec 16 (2)(Suitable to consume)
Implied warrantee
? Unless otherwise agreed, the low also incorporates
into a contract of sales of goods the following implied warranties. ? 1) Warranty of Quiet Possession (True owner) ? 2)Warranty of freedom from encumbrances ? 3) Warranty of disclosing the dangerous nature of goods to the ignorant buyer ?
Express and Implied conditions and warrantee
? In contract of sale ,the conditions & warrantee can be
express or implied. ? They are said to be express when at the will of the parity they are inserted in a contract. ? Example- Buy a Sony TV of 2062 model – Express. - Buy a Usha fan with 05 yrs implied warrantee
Doctrine of “Caveat Emptor”
? This means “let the buyer beware”. It is not a part of seller’s
duty to point out defects of the goods, which he offers for sale, rather it is the duty of the buyer to satisfy himself about the quality as well as the suitability of the goods. A seller under no circumstances as a duty to reveal unflattered truths about the goods sold and therefore when ever a buyer buys the goods, he must exercise necessary care in his own interest ? - A pig was being sold to with swine flue infection, Buyer was not aware of the defect, although the matter was known to seller , he will not held responsible as the Caveat Emptor rule a rule is already there. In this case there was no implied warrantee by seller. Hence he will not held for damages ( Ward Vs Hobbs)
EXCEPTIONS to Doctrine Caveat Emptor
? In the following cases the above doctrine DOES NOT APPLY ? 1.-Custom or usage of Trade-An implied warranty or condition
? ? ? ?
as to quality or fitness for a particular purpose may be annexed by the usage of trade. 2.-Fraud-If seller took consent from buyer by fraud then he is liable to pay the damages. 3. For Specific Purpose – Goods purchased with knowledge of seller that this is required for specific purpose and still he cheats then liable to be pay the damages. 4.-Merchantable Quality : If it is already sold as a description for merchantability quality then no choice is left. Goods has to be of that requisite quality or liable to pay for the damages. 5.-Goods are sold with description and sample then the this doctrine does not apply
Performance of contract of sale (Sec 33 to 44)
? A)Duties of the seller and Buyer regarding delivery of
? ? ? ? ? ? ? ? ?
goods : Seller It is the duty of the seller to deliver the goods the buyer to accept pay for them in accordance (Sec 31) Buyer The Buyer of the goods has to duty to 1.Pay for the goods, 2Accept the delivery 3.Pay compensation to the seller in case he wrongfully refuses to accept delivery.
Delivery of the goods :
? Delivery of the goods : ? “A Voluntary transfer of possession from one person to another (Sec 32). ? An act concerned to possession at the desire of the buyer / on the instruction of Buyer, puts a goods in the possession of the address (Sec 33) ? There fore it is clear that in addition to transfer of physical possession ,any other act which the parties agree to treat as equivalent there to has the effect of delivery.
? Delivery of goods may be there of: ? 1. Physical or Actual Delivery ? 2.Constructive delivery. (Only on behalf, possession is held up and acknowledge is treated as goods received physically.) ? a) Buyer possess but ownership receipt is with Seller b) or vice versa. ? c) Third Party hold the goods on behalf of buyer or seller ? 3. Symbolic Delivery –RR, and Bill of Landing.
Unpaid seller
? Meaning : “A Person who has not paid the whole of
the price or to whom the whole of the price has been tendered “Sec 45 (1) is called unpaid seller. ? Buyer purchase goods and not pay for the same, fails to pay for the same, then the seller is called as Unpaid seller. ? The seller deemed to be “unpaid seller” when : ? a) The whole or part of price is not paid by the buyer. b) If the Negotiable instrument became dishonoured on due date.
Right of Unpaid seller
? 1)Right against Goods :
1) Lien on the goods. To retain the goods underSec (47-49)
a) When goods are sold on credit with out any condition and possession of the goods is with seller. b) The goods sold on credit but its credit terms expires. c) where the buyer becomes insolvent.
Lien on the goods is possible only on following condition :
1. Lien is to exercised only against Non-payment only. 2. Lien is a personal act but be against particular deal only. 3. Lien is not acceptable in concerned to his Agent, / his representative.
Right of Unpaid seller
2) A right to stop the goods in transit. 1. When seller has parted the goods and he became unpaid. 2. When Buyer becomes insolvent. 3) Right to re-sale it. Eight month is unreasonable period
doc_627319470.pptx
Act consolidates the original Sale of Goods Act 1893 and subsequent legislation, which in turn had codified and consolidated the law. Since 1979, there have been numerous minor statutory amendments and additions to the 1979 Act, and a new consolidated Act is overdue.
Meaning :
? Meaning : A contract of sale of goods, is contract
whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price / monetary consideration. ? Sale and agreement to sale : Sec 4 (3) ? Where in there is a contract of sale of goods, but the physical transfer of goods is yet to take place or on some conditions the goods is intended to transfer.
Essentials of contract of Sale
? Two Parties
? Goods must be the subject matter ? Transfer of property
? Monetary benefit, must be the consideration
? Contains of all essentials of valid contract ? Contract of sales includes the agreement to sale
also.
Distinction of Contract to sale and Agreement to Sale Sec 4 (3)
? CS - (Meaning)-Transfer of property is done from seller to buyer. ? AS – Transfer of property is to take place in future or subject to some
conditions.
? CS-(Nature of contract)-It is executed contract. ? AS – Executory contract.
? CS – (Nature of Property / goods)-Existing and specific goods only. ? AS- Mostly such a contract takes place with future goods or contingent
goods.
? CS –(Ownership transfer) Goods possession is given immediately
after sale. ? AS – Yet to take in future / Not actual transfer or with some conditions
Cont.……..
Distinction of Contract to sale and Agreement to Sale- Sec 4 (3)
? CS-(General /Property) It implies a contract plus transfer of ? ? ? ?
?
? ?
ownership who became a absolute owner of the goods. Jus in rem (Right to against the whole world) AS-Mere contract to sale (agreement) is executed which secures buyer only jus in personam (Right against the particular individual) Buyer can sue against seller for the damages CS : (Remedies) Sue for the price, Right of lien, Stoppage in transit. AS: Seller has got right to sue against damages. CS : (Insolvency of buyer before he pay the debts) Seller got a right to sue, stoppage of goods in transit or resale of goods. AS : Seller has got a right only sue against damages for nonperformance of contract. CS: (Right of release ): Can not resale the goods AS: Right to resale, as per his will and wish can dispose off.
Conditions & Warrantee - Sec 12
? A contract of sale may consist of number of stipulations
(Terms/conditions)All such stipulations may not be equal importance. Some of them may be so important that nonperformance of such stipulations may amount to breach of contract. Such stipulations are called “condition”. ? These stipulations always use to be major. ? It is essentials for main purpose of contract. Breach of the condition right to reject the goods. ? The stipulations in contracts of sale regarding quality and quantity of goods. Its colour and design, packing of delicate items, valuable and breakable goods etc, are considered as a condition.
Warrantees
? There are certain stipulations which are not a vital
importance .They are called “Warranties”. ? These stipulations always use to be minor , very essential and negligible. Breach of warranty will not effect to the extend to cancel the contract. ? The stipulation may collateral (Security/Guarantee) to the contract but may not that important like conditions. The aggressive party may suit claims for the damages but can not repudiate (Cancel/Reject) the sale agreement or contract of sale.
Difference between Condition and warranty
? A) Condition is a stipulation which is essential to the main purpose of
the contract of sale. ? Warranty is a stipulation which is only collateral to the main purpose of the contract of sale.
? B)
C-Difference to Breach –Aggressive party has right to sue or claims for damages, contract can be cancelled. ? W- Only right to sue is available but contract can not be cancelled.
? C)
C-(Essence(real/core) of contract of sale)condition always goes to root of the contract, it is of fundamental nature, Main purpose of contract can not fulfill with the particular stipulation. ? W- warrantee can not go to root of the contract, it is of subsidiary nature . Fulfillment of contract does not mean the fulfillment of warrantee.
Difference between Condition and warranty
? D) C- Damages- If there is a breach of Condition, a
buyer has an option to claim damages instead of repudiating the contract ? W- If there is a breach of warrantee buyer can not repudiate the contract but can claim against the damages.
Implied conditions
? A) Conditions as to clear title (True owner) -Sec 14 (a) ? LS_-Rowland Vs Divall,(1923) car Sold with out title and held
? ? ? ? ?
?
?
responsible to pay the damages. B) Condition as to sale by description (Section 15) L_S – Shephared Vs Kain-Ship was told cooper fastened but physically it was partially quoted C) Condition as to sale by description as well as sample. D) Condition as to sale by sample only. Sec-17 E) Condition as to sale by quality or fitness. Sec 16 (1) L_S- Priest Vs Last (1908)Hot bottle was sold by seller with guarantee of quality of fitness, But got burst and wife injured F) Conditions as to sale by merchantability L_S- Gardner Vs Grey – Item must Saleable in the market. G) Condition as to wholesomeness Sec 16 (2)(Suitable to consume)
Implied warrantee
? Unless otherwise agreed, the low also incorporates
into a contract of sales of goods the following implied warranties. ? 1) Warranty of Quiet Possession (True owner) ? 2)Warranty of freedom from encumbrances ? 3) Warranty of disclosing the dangerous nature of goods to the ignorant buyer ?
Express and Implied conditions and warrantee
? In contract of sale ,the conditions & warrantee can be
express or implied. ? They are said to be express when at the will of the parity they are inserted in a contract. ? Example- Buy a Sony TV of 2062 model – Express. - Buy a Usha fan with 05 yrs implied warrantee
Doctrine of “Caveat Emptor”
? This means “let the buyer beware”. It is not a part of seller’s
duty to point out defects of the goods, which he offers for sale, rather it is the duty of the buyer to satisfy himself about the quality as well as the suitability of the goods. A seller under no circumstances as a duty to reveal unflattered truths about the goods sold and therefore when ever a buyer buys the goods, he must exercise necessary care in his own interest ? - A pig was being sold to with swine flue infection, Buyer was not aware of the defect, although the matter was known to seller , he will not held responsible as the Caveat Emptor rule a rule is already there. In this case there was no implied warrantee by seller. Hence he will not held for damages ( Ward Vs Hobbs)
EXCEPTIONS to Doctrine Caveat Emptor
? In the following cases the above doctrine DOES NOT APPLY ? 1.-Custom or usage of Trade-An implied warranty or condition
? ? ? ?
as to quality or fitness for a particular purpose may be annexed by the usage of trade. 2.-Fraud-If seller took consent from buyer by fraud then he is liable to pay the damages. 3. For Specific Purpose – Goods purchased with knowledge of seller that this is required for specific purpose and still he cheats then liable to be pay the damages. 4.-Merchantable Quality : If it is already sold as a description for merchantability quality then no choice is left. Goods has to be of that requisite quality or liable to pay for the damages. 5.-Goods are sold with description and sample then the this doctrine does not apply
Performance of contract of sale (Sec 33 to 44)
? A)Duties of the seller and Buyer regarding delivery of
? ? ? ? ? ? ? ? ?
goods : Seller It is the duty of the seller to deliver the goods the buyer to accept pay for them in accordance (Sec 31) Buyer The Buyer of the goods has to duty to 1.Pay for the goods, 2Accept the delivery 3.Pay compensation to the seller in case he wrongfully refuses to accept delivery.
Delivery of the goods :
? Delivery of the goods : ? “A Voluntary transfer of possession from one person to another (Sec 32). ? An act concerned to possession at the desire of the buyer / on the instruction of Buyer, puts a goods in the possession of the address (Sec 33) ? There fore it is clear that in addition to transfer of physical possession ,any other act which the parties agree to treat as equivalent there to has the effect of delivery.
? Delivery of goods may be there of: ? 1. Physical or Actual Delivery ? 2.Constructive delivery. (Only on behalf, possession is held up and acknowledge is treated as goods received physically.) ? a) Buyer possess but ownership receipt is with Seller b) or vice versa. ? c) Third Party hold the goods on behalf of buyer or seller ? 3. Symbolic Delivery –RR, and Bill of Landing.
Unpaid seller
? Meaning : “A Person who has not paid the whole of
the price or to whom the whole of the price has been tendered “Sec 45 (1) is called unpaid seller. ? Buyer purchase goods and not pay for the same, fails to pay for the same, then the seller is called as Unpaid seller. ? The seller deemed to be “unpaid seller” when : ? a) The whole or part of price is not paid by the buyer. b) If the Negotiable instrument became dishonoured on due date.
Right of Unpaid seller
? 1)Right against Goods :
1) Lien on the goods. To retain the goods underSec (47-49)
a) When goods are sold on credit with out any condition and possession of the goods is with seller. b) The goods sold on credit but its credit terms expires. c) where the buyer becomes insolvent.
Lien on the goods is possible only on following condition :
1. Lien is to exercised only against Non-payment only. 2. Lien is a personal act but be against particular deal only. 3. Lien is not acceptable in concerned to his Agent, / his representative.
Right of Unpaid seller
2) A right to stop the goods in transit. 1. When seller has parted the goods and he became unpaid. 2. When Buyer becomes insolvent. 3) Right to re-sale it. Eight month is unreasonable period
doc_627319470.pptx