Description
The seller or salesperson – the provider of the goods or services – completes a sale in response to an acquisition or to an appropriation[citation needed] or to a request.
Sale and Transfer of Ownership: Cases
1
Sale and Transfer of Ownership: Cases
2
Case: Coffee Mugs
A store advertised for coffee mugs through its catalogue. Rahul received a copy of the catalogue in the mail. The catalogue has pictures of the coffee mugs and their prices. Rahul made up his mind to buy a particular set.
He goes to the counter in the self service store and asks for the particular coffee mug. As a shop assistant brings it to the counter, another customer, inadvertently, knocks the box down. The coffee mugs break.
Another set is brought for Rahul.
3
Case: More Coffee Mugs
Two accidents in a day is unbelievable. But it did happen. Rahul collected his coffee mugs. As he was walking out of the store, an absent minded customer collided with him. The bag fell off his hand and the coffee mugs broke.
The customer apologised to Rahul, asked him to be careful and moved on.
4
Summary
Risk moves with ownership.
5
Case: Air-Conditioner
Udit Sales contracted with Manu to sell an air conditioner for Rs. 25, 000. The purchase order provided that the money was to be paid in advance and ownership in the air-conditioner was to pass to Manu after Udit Sales had installed it at Manu’s premises to Manu’s satisfaction. In the course of the installation, the air-conditioner got damaged. Who would bear the loss?
6
Summary
Ownership transfers as agreed between the parties.
Udit Sales is the owner of the air-conditioner when it gets damaged. Thus, Udit Sales would bear the risk.
7
Case: Car on Hire Purchase
Prashant took a car from a motor car dealer. According to the terms of the contract, Prashant was to pay a monthly installment of Rs. 8, 000 for 4 years. On paying all the monthly installments, the ownership in the car was to transfer to Prashant. Before completing the installments, Prashant sold the car to Yash. The motor car dealer is seeking to recover the car from Yash.
8
Summary
Ownership transfers as agreed between the parties.
As all the installments have not been paid, the motor dealer continues to be the owner of the car. The motor dealer can have the car recovered to him.
9
Case: Glass Jar
Consider the following different situations in a self service store. Whose loss is this? : • Giri in picking up a jar from the shelve dropped it and it broke. • Giri brought a glass jar in his shopping and put it on the counter. The person at the counter dropped the bottle and it broke. • The person at the counter gave the jar to Giri. Thereafter, Giri dropped the jar and it broke.
10
Case: Glass Jar
Consider the following different situations in a self service store. Whose loss is this? : • Giri in picking up a jar from the shelve dropped it and it broke. (Shop) • Giri brought a glass jar in his shopping and put it on the counter. The person at the counter dropped the bottle and it broke. • The person at the counter gave the jar to Giri. Thereafter, Giri dropped the jar and it broke.
11
Case: Glass Jar
Consider the following different situations in a self service store. Whose loss is this? : • Giri in picking up a jar from the shelve dropped it and it broke. (Shop) • Giri brought a glass jar in his shopping and put it on the counter. The person at the counter dropped the bottle and it broke. (Shop) • The person at the counter gave the jar to Giri. Thereafter, Giri dropped the jar and it broke.
12
Case: Glass Jar
Consider the following different situations in a self service store. Whose loss is this? : • Giri in picking up a jar from the shelve dropped it and it broke. (Shop) • Giri brought a glass jar in his shopping and put it on the counter. The person at the counter dropped the bottle and it broke. (Shop) • The person at the counter gave the jar to Giri. Thereafter, Giri dropped the jar and it broke. (Giri)
13
Summary
Ownership transfers as agreed between the parties. Like other terms of the contract, the parties can provide on the transfer of ownership in express terms or impliedly, by their conduct, action and practices.
14
Case: Sale of Scooter
Manoj was moving out of the town. He put up posters inviting people to come to his house to buy his belongings. Ajit visited him. The two agreed on the sale of Manoj’s scooter for Rs. 20, 000. Ajit was insisting on giving the money immediately and taking away the scooter. While Manoj wanted to keep the scooter for another month.
When should the ownership in scooter transfer to Ajit?
15
Summary
In this case, the parties have neither provided on the transfer of ownership in express terms nor can it be implied from the context and conduct of the parties. The contracts which do not provide on transfer of ownership are called unconditional contracts.
16
Case: Specific Washing Machine
Bhushan bought a washing machine from a shop, Shakti Sales. Bhushan paid through credit card and the shop gave him a receipt, mentioning the serial number of the washing machine. The purchase order which Bhushan had signed mentioned that the ownership in good passes at the time of issuing of receipt. Thereafter, the buyer could take the receipt and collect it from the warehouse of Shakti Sales. Bhushan went two days later to collect the washing machine. In these two days, Shakti Sales made many sales. By mistake, the shop wrote the same serial number to another customer, Chetan. Both, Bhushan and Chetan are at the warehouse, claiming the washing machine. To whom should the warehouse give the washing machine?
17
Summary
The parties have expressly provided for the passing of the ownership of a specific machine at the time of issuing of the receipt. The washing machine became Bhushan’s property when he got the receipt.
18
Case: TV at the Warehouse
Jaya bought a television from a shop, Shakti Sales. The shop made a receipt for payment of the money and mentioned the model of the purchase. The purchase order which Jaya had signed mentioned that ownership in good passed at the time of issuing of receipt. Thereafter, the buyer could take the receipt and collect it from the warehouse of the shop. Jaya went two days later to collect her television. In these two days, the shop made many sales to other customers. When Jaya reached the warehouse, there was only one television of that model and it was being handed over to another buyer. Jaya insists that she should be given the television set as her receipt was dated for an earlier date.
19
Summary
The contract provides for the transfer of ownership when the receipt is issued. However, ownership can pass only in a specific machine. Thus, ownership does not pass when the receipt is issued.
20
Case: Damage in Transit
Prax Computers loaded 50 personal computers for delivering to different buyers. The computers were not marked for individual buyers. The sale arrangement was that the ownership passed to the buyers when goods moved out of the warehouse of Prax. In transit, all the computers got destroyed. Prax refuses to return the money to Uday, a person who had bought one computer. Prax is arguing that he would have been given one of the computers. Since all the computers have got destroyed, the set belonging to Udit has also been destroyed. Thus, Udit must bear the loss.
21
Summary
Ownership can transfer only in specific and identified goods. As a specific computer is not identified for Uday, the computers continue to be the property of Prax. Prax will bear the loss.
22
Legal Provision
Section 19. Property passes when intended to pass.- (1) Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred.
(2) For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and the circumstances of the case.
23
Legal Provision
Section 20. Specific goods in a deliverable state.- Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment of the price or the time of delivery of the goods, or both, is postponed.
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doc_209952164.ppt
The seller or salesperson – the provider of the goods or services – completes a sale in response to an acquisition or to an appropriation[citation needed] or to a request.
Sale and Transfer of Ownership: Cases
1
Sale and Transfer of Ownership: Cases
2
Case: Coffee Mugs
A store advertised for coffee mugs through its catalogue. Rahul received a copy of the catalogue in the mail. The catalogue has pictures of the coffee mugs and their prices. Rahul made up his mind to buy a particular set.
He goes to the counter in the self service store and asks for the particular coffee mug. As a shop assistant brings it to the counter, another customer, inadvertently, knocks the box down. The coffee mugs break.
Another set is brought for Rahul.
3
Case: More Coffee Mugs
Two accidents in a day is unbelievable. But it did happen. Rahul collected his coffee mugs. As he was walking out of the store, an absent minded customer collided with him. The bag fell off his hand and the coffee mugs broke.
The customer apologised to Rahul, asked him to be careful and moved on.
4
Summary
Risk moves with ownership.
5
Case: Air-Conditioner
Udit Sales contracted with Manu to sell an air conditioner for Rs. 25, 000. The purchase order provided that the money was to be paid in advance and ownership in the air-conditioner was to pass to Manu after Udit Sales had installed it at Manu’s premises to Manu’s satisfaction. In the course of the installation, the air-conditioner got damaged. Who would bear the loss?
6
Summary
Ownership transfers as agreed between the parties.
Udit Sales is the owner of the air-conditioner when it gets damaged. Thus, Udit Sales would bear the risk.
7
Case: Car on Hire Purchase
Prashant took a car from a motor car dealer. According to the terms of the contract, Prashant was to pay a monthly installment of Rs. 8, 000 for 4 years. On paying all the monthly installments, the ownership in the car was to transfer to Prashant. Before completing the installments, Prashant sold the car to Yash. The motor car dealer is seeking to recover the car from Yash.
8
Summary
Ownership transfers as agreed between the parties.
As all the installments have not been paid, the motor dealer continues to be the owner of the car. The motor dealer can have the car recovered to him.
9
Case: Glass Jar
Consider the following different situations in a self service store. Whose loss is this? : • Giri in picking up a jar from the shelve dropped it and it broke. • Giri brought a glass jar in his shopping and put it on the counter. The person at the counter dropped the bottle and it broke. • The person at the counter gave the jar to Giri. Thereafter, Giri dropped the jar and it broke.
10
Case: Glass Jar
Consider the following different situations in a self service store. Whose loss is this? : • Giri in picking up a jar from the shelve dropped it and it broke. (Shop) • Giri brought a glass jar in his shopping and put it on the counter. The person at the counter dropped the bottle and it broke. • The person at the counter gave the jar to Giri. Thereafter, Giri dropped the jar and it broke.
11
Case: Glass Jar
Consider the following different situations in a self service store. Whose loss is this? : • Giri in picking up a jar from the shelve dropped it and it broke. (Shop) • Giri brought a glass jar in his shopping and put it on the counter. The person at the counter dropped the bottle and it broke. (Shop) • The person at the counter gave the jar to Giri. Thereafter, Giri dropped the jar and it broke.
12
Case: Glass Jar
Consider the following different situations in a self service store. Whose loss is this? : • Giri in picking up a jar from the shelve dropped it and it broke. (Shop) • Giri brought a glass jar in his shopping and put it on the counter. The person at the counter dropped the bottle and it broke. (Shop) • The person at the counter gave the jar to Giri. Thereafter, Giri dropped the jar and it broke. (Giri)
13
Summary
Ownership transfers as agreed between the parties. Like other terms of the contract, the parties can provide on the transfer of ownership in express terms or impliedly, by their conduct, action and practices.
14
Case: Sale of Scooter
Manoj was moving out of the town. He put up posters inviting people to come to his house to buy his belongings. Ajit visited him. The two agreed on the sale of Manoj’s scooter for Rs. 20, 000. Ajit was insisting on giving the money immediately and taking away the scooter. While Manoj wanted to keep the scooter for another month.
When should the ownership in scooter transfer to Ajit?
15
Summary
In this case, the parties have neither provided on the transfer of ownership in express terms nor can it be implied from the context and conduct of the parties. The contracts which do not provide on transfer of ownership are called unconditional contracts.
16
Case: Specific Washing Machine
Bhushan bought a washing machine from a shop, Shakti Sales. Bhushan paid through credit card and the shop gave him a receipt, mentioning the serial number of the washing machine. The purchase order which Bhushan had signed mentioned that the ownership in good passes at the time of issuing of receipt. Thereafter, the buyer could take the receipt and collect it from the warehouse of Shakti Sales. Bhushan went two days later to collect the washing machine. In these two days, Shakti Sales made many sales. By mistake, the shop wrote the same serial number to another customer, Chetan. Both, Bhushan and Chetan are at the warehouse, claiming the washing machine. To whom should the warehouse give the washing machine?
17
Summary
The parties have expressly provided for the passing of the ownership of a specific machine at the time of issuing of the receipt. The washing machine became Bhushan’s property when he got the receipt.
18
Case: TV at the Warehouse
Jaya bought a television from a shop, Shakti Sales. The shop made a receipt for payment of the money and mentioned the model of the purchase. The purchase order which Jaya had signed mentioned that ownership in good passed at the time of issuing of receipt. Thereafter, the buyer could take the receipt and collect it from the warehouse of the shop. Jaya went two days later to collect her television. In these two days, the shop made many sales to other customers. When Jaya reached the warehouse, there was only one television of that model and it was being handed over to another buyer. Jaya insists that she should be given the television set as her receipt was dated for an earlier date.
19
Summary
The contract provides for the transfer of ownership when the receipt is issued. However, ownership can pass only in a specific machine. Thus, ownership does not pass when the receipt is issued.
20
Case: Damage in Transit
Prax Computers loaded 50 personal computers for delivering to different buyers. The computers were not marked for individual buyers. The sale arrangement was that the ownership passed to the buyers when goods moved out of the warehouse of Prax. In transit, all the computers got destroyed. Prax refuses to return the money to Uday, a person who had bought one computer. Prax is arguing that he would have been given one of the computers. Since all the computers have got destroyed, the set belonging to Udit has also been destroyed. Thus, Udit must bear the loss.
21
Summary
Ownership can transfer only in specific and identified goods. As a specific computer is not identified for Uday, the computers continue to be the property of Prax. Prax will bear the loss.
22
Legal Provision
Section 19. Property passes when intended to pass.- (1) Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred.
(2) For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and the circumstances of the case.
23
Legal Provision
Section 20. Specific goods in a deliverable state.- Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment of the price or the time of delivery of the goods, or both, is postponed.
24
doc_209952164.ppt