Sales of Good Act

8/8/2019 Sales of Good Act

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Module 3

Law of Sales of Goods


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Sale of Goods Act, 1930Sale of Goods Act, 1930.. minor amendments in 1963minor amendments in 1963

DefinitionDefinitionyy

A A contractcontract of of salesale of of goodsgoods isisyy aa contra ctcontra ct wh ereby wh ereby t h eth e sellerseller transferstransfersoror agreesagrees toto transfertransfer th eth e property property iningoodsgoods toto thethe buyerbuyer forforaa pri cepri ce .. SecSec..44((1 1) )..

yy A A contractcontract of of salesale may may bebe absoluteabsolute ororconditionalconditional. .


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Essentials of contract of saleEssentials of contract of saleyy All All essentialsessentials of of valid valid contractcontract applicableapplicableyy Bet w eenBet w een t w ot w o partiespartiesyy ToTo transfertransfer oror agreeagree toto transfertransfer t h eth e property property yy P ri ceP ri ce ,, ii..ee.. th eth e considerationconsideration isis money money..yy GoodsGoodsyy In cludesIn cludes bothboth salesale && anan agreementagreement to to sellsellyy NoNo formalitiesformalities to to bebe observedobserved: : simplesimple offer/offer/

acceptanceacceptance by by eit h ereith er sellerseller oror buyerbuyer;;Orally/Written ,Orally/Written , by by conductconduct of of th eth e parties ,parties , Neith erNeith erpaymentpayment nornor delivery delivery necessary necessary atat timetime of of makingmakingcontractcontract of of salesale..


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Transfer of propertyTransfer of propertyyy TransferTransfer of of property property meansmeans transfertransfer of of

ownershipownership. .yy M ereM ere transfertransfer of of possessionpossession cancan notnot bebe termedtermed asas

aa salesale..yy SecSec..22 ((1111))-- Property Property meansmeans generalgeneral property property inin

goodsgoods andand notnot merely merely aa specialspecial property property ..yy GeneralGeneral property property meansmeans allall o w ners h ipo w ners h ip righ tsrigh ts

andand spe cialspe cial property property meansmeans limitedlimited rig h tsrigh ts..


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Transfer of propertyTransfer of propertyM ere transfer of possession can not be termed as a sale.M ere transfer of possession can not be termed as a sale.

yy Property Property inin goodsgoods isis differentdifferent t h anth an possessionpossessionof of goodsgoods..

yy PossessionPossession of of GoodsGoods -- custody custody overover goodsgoods--property property inin goodsgoods may may bebe passedpassed toto aa buyerbuyer by by aasellerseller butbut t h eth e property property may may stillstill bebe inin possessionpossessionof of sellerseller eit h ereith er asas aa UnpaidUnpaid sellerseller oror BaileeBailee forforth eth e buyerbuyer


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Wh o is an Unpaid Seller? A seller of t h e goods is deemed to be an unpaidseller wh en:

y Th e wh ole of t h e price h as not been paid ortendered.

y A bill of exch ange or ot h er negotiable instrumenth as been received as conditional payment.


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Rights of unpaid seller

Against the goodsAgainst the buyer

personally

Where the propertyIn the goods has

passed

Where the propertyIn the goods has not

passed

Lien Re-SaleStoppageIn transit

Withholdingdelivery

Stoppage intransit

Suit for interest

Repudiation of contract

Suit for damages


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Transfer of propertyy R isk passes w ith th e property , unless ot h er w ise agreed by

th e contacting parties.y

After passing of t h e property t h e buyer can exercise t h eo w ners h ip righ ts.y Th e seller is entitled to recover t h e price of goods only

after t h e property in goods is passed to t h e buyer.y In case of insolvency of any of t h e parties , th e o w ners h ip

of goods is t h e key issue and not t h e possession of goods.


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Ru les for passing of property.y Goods must be ascertained. Sec.18y Intention of parties:- Sec.19(1). W h ere t h ere is a

contract for t h e sale of specific or ascertainedgoods , th e property in t h em passes to t h e buyer atth e time wh en t h e parties intend it to pass.

y For t h e purpose of ascertain intentions of partiesth e terms of contract and t h e circumstances of th e case are considered.

y W h ere intentions can not be ascertained Secs 20to 24 apply.


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Specific goods secs.20 to 22y Passing of property at t h e time of contract:- W h ere

th ere is an unconditional contract for t h e sale of specific goods in a deliverable state , th e property in goods passes to t h e buyer wh en t h e contract ismade , and it is immaterial wh eth er t h e time of payment of t h e price or time of delivery of goods ,or bot h , is postponed.

y

W h

ere th

e goods are not in a deliverable state,

th

eproperty does not pass until t h e seller puts t h emin to deliverable state.

y W h ere t h e price of goods is to be ascertained by w eigh ing, etc. t h e property does not pass untilsuch th ing is done.


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Unascertained goods.y Th ere can be no transfer of property of

unascertained goods . Until goods areascertained t h ere is only an agreement to sell.

y Sec 23(1) furth er provides t h at in case of acontract of unascertained or future goods by description and goods of t h at description in a

deliverable state are unconditionallyappropriated to t h e contract , th e property ingoods t h ereupon passes to t h e buyer.


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Ess tials f vali a r riati

1. Th e goods s h ould confirm t h e description and t h equality as per t h e contract.

2. Th e goods must be in a deliverable state.3. Th e appropriation must be unconditional.4. Th e appropriation must be w ith th e ascent of buyer

and t h e seller.

5. Th e ascent may be express or implied and may begiven before or after t h e appropriation.


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Goods sent on approval or sale or

ret u rn Sec.24y W h en Goods are delivered to t h e buyer on approval

or sale or return or oth er similar terms , th eproperty t h erein passes to t h e buyer

a) W h en h e signifies h is approval or acceptance to t h e selleror does any ot h er act adopting t h e transaction;

b) If h e does not signify h is approval or acceptance to t h eseller but retains t h e goods w ith out giving notice of

rejection , th en , wh en a time h as been fixed for t h e returnof th e goods , on t h e expiration of suc h time , and , if notime h as been fixed , after a reasonable time.


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Sale of title by non owners.y Sec.27 provides t h at wh ere goods are sold by aperson wh o is not t h e o w ner th ereof and wh odoes not sell t h em under t h e aut h ority or w ith

th e consent of t h e o w ner , th e buyer acquires nobetter title to t h e goods t h an t h e seller h ad.y Th is rule h as certain exceptions -

y Sale by mercantile agent wh erey h e h as th e possession of t h e goods or t h e documentsof th e title ,y h e is acting in ordinary course of business , and t h e

buyer h as acted in good fait h , believing agentsaut h ority to sell.


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Ex ceptions..y Sale by a joint o w nery Transfer of title by estoppel.

y Estoppel means t h at a person wh o by h is conductor w ords leads anot h er to believe t h at certain stateof affairs existed , w ould be estopped from denyinglater on t h at suc h a state of affairs does not exist.

y Sale by a person in possession under a voidablecontract.

y Sale by seller in possession after t h e sale.y Sale by a buyer in possession before th e sale.y R esale by an unpaid seller .


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GoodsGoods

yy SecSec..22((77)).. GoodsGoods meansmeans every every kindkind of of m ovablem ovable property property oth eroth er t h anth an actionableactionableclaimsclaims andand money money ,,

yy andand includesincludes stockstock andand s h ares ,sh ares , gro w inggro w ingcrops ,crops , grass ,grass , andand t h ingsth ings attac h edattac h ed toto oror

formingforming partpart of of th eth e landland wh ich wh ich areare agreedagreed totobebe severedsevered beforebefore salesale oror underunder contractcontract of of salesale..


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Kind of goodsKind of goods11.. ExistingExisting goodsgoods- - SecSec..66((11)) th eseth ese areare t h eth e goodsgoods wh ich wh ich areare

inin existenceexistence andand areare p h ysically ph ysically presentpresent inin t h eth e sellerssellerspossessionpossession.. Th ey Th ey areare furt h erfurt h er classifiedclassified asas

yy SpecificSpecific goodsgoods-- 22((1414)) th eseth ese areare t h eth e goodsgoods identifiedidentified andandagreedagreed uponupon atat t h eth e timetime th eth e contractcontract isis mademade..-- A A radioradio w ith w ith specificspecific nono../make ,/make , inin sellerssellers possessionpossession wh o wh o agreesagrees totosellsell itit toto t h eth e buyerbuyer..

yy Ascertained Ascertained goodsgoods -- th eseth ese areare identifiedidentified afterafter th eth eformationformation of of th eth e contractcontract. .-- II w ill w ill buy buy aa radio ,radio , th eth e makemake II w ill w ill decidedecide afterafter learninglearning aboutabout specificationspecification

yy UnascertainedUnascertained goodsgoods -- th eseth ese areare t h eth e goodsgoods wh ich wh ich areare notnotspecifically specifically identifiedidentified oror agreedagreed uponupon atat t h eth e timetime of of th eth econtractcontract of of salesale..-- OneOne laptoplaptop fromfrom aa lotlot sentsent toto Bh opalBh opal isisdecideddecided toto bebe boug h tboug h t andand soldsold.. A s A s soonsoon asas th eth e laptoplaptop isisidentifiedidentified itit becomesbecomes specificspecific goodgood..


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Kind of goodsKind of goodsyy FutureFuture goodsgoods --secsec..22((66))-- wh ich wh ich dodo notnot existexist w ith w ith

th eth e sellerseller atat t h eth e timetime of of salesale.. th eth e contractcontract t h usth usisis anan agreementagreement toto sellsell..

yy All All mangosmangos fromfrom my my orc h ardorch ard w ill w ill bebe soldsold toto XYZ XYZ LtdLtd.. forforaa year year..

yy ContingentContingent goodsgoods secsec.. 66((22)) aa typetype of of futurefuturegoods ,goods , th eth e acquisitionacquisition of of wh ich wh ich dependsdepends uponupon aacontingency contingency wh ich wh ich may may oror may may notnot h appenh appen(Uncertain)(Uncertain). .

yy A A entersenters intointo aa contractcontract w ith w ith BB toto sellsell h imh im CarCar o w nedo w ned by by ZZ only only afterafter A A isis ableable toto acquireacquire t h eth e carcar fromfrom ZZ..


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Peris h ing of goodsPeris h ing of goodsyy Th eTh e possiblepossible causescauses of of peris h ingperis h ing of of goodsgoods::--

1.1. Ph ysicalPh ysical destructiondestruction of of goodsgoods..2.2. DamageDamage of of goodsgoods inin suc hsuch aa mannermanner t h atth at t h ey th ey

looseloose t h eirth eir commercialcommercial value value..3.3. LossLoss of of goodsgoods by by th eftth eft..

4.4. La w fulLa w ful acquisitionacquisition of of goodsgoods by by governmentgovernment. .


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Effect of peris h ing of goodsEffect of peris h ing of goodsyy GoodsGoods peris h ingperis h ing beforebefore formationformation of of th eth e contractcontract. .-- inin

casecase of of specificspecific goodsgoods suc hsuch contractcontract isis void void abab initioinitio

as th

e performance of th

e contract is impossible dueto destruction of subject matter.

yy GoodsGoods peris h ingperis h ing beforebefore t h eth e salesale butbut afterafter t h eth e

agreementagreement toto sellsell.:.:-- inin casecase of of specificspecific goodsgoods t h eth econtractcontract of of salesale becomesbecomes void void andand bot hbot h partiesparties areareexcusedexcused fromfrom t h eth e performanceperformance. . (Sec(Sec..88))


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Effect of peris h ing of goodsEffect of peris h ing of goodsyy Effe ctEffe ct of of perishingperishing of of futurefuture goodsgoods.:.:-- SecSec..88

appliesapplies inin t h isth is casecase alsoalso wh ich wh ich sayssaysyy

wh ere wh ere t h ereth ere isis anan agreementagreement toto sellsell specificspecificgoods ,goods , andand subsequently subsequently t h eth e goodsgoods w ith out w ith out any any faultfault onon t h eth e partpart of of th eth e sellerseller oror buyerbuyer peris hperis h ororbecomebecome soso damageddamaged asas nono longerlonger toto ans w erans w er tototh eirth eir descriptiondescription inin t h eth e agreementagreement beforebefore t h eth eriskrisk passespasses toto t h eth e buyer ,buyer , th eth e agreementagreement isisth ereby th ereby avoidedavoided ..

yy If If th eth e contractcontract isis stillstill mademade itit isis atat t h eth e riskrisk of of th eth eBuyerBuyer..


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P rice considerationP rice considerationyy Th eTh e considerationconsideration forfor t h eth e contractcontract of of salesale mustmust bebe

money money.. If If goodsgoods areare exc h angedexch anged againstagainst goodsgoods t h eth e

transactiontransaction isis barterbarter andand notnot coveredcovered by by th

eth

e actact..Ho w everHo w ever considerationconsideration may may bebe partly partly inin money money andandpartly partly inin goodsgoods..

yy

N ON O SPECIALSPECIAL FORM ALITIESFORM ALITIES A R E A R E R EQUIR EDR EQUIR ED FOR FOR CON TR ACTCON TR ACT OFOF SALESALE.. ITIT M AY M AY BEBE ININ W R ITIN G W R ITIN G OR OR OR ALOR AL OR OR IM PLIEDIM PLIED..


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P riceP riceyy SecSec..22((1010)) definesdefines t h eth e priceprice asas th eth e money money considerationconsideration

forfort h eth e salesale of of goodsgoods..yy

PricePrice h ash as toto bebe inin termsterms of of money money..yy All All monitory monitory paymentspayments dodo notnot amountamount toto priceprice..


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Fix ing t h e priceFix ing t h e priceyy PricePrice isis mentionedmentioned inin t h eth e contractcontract. .yy Th eTh e mannermanner of of fixingfixing th eth e priceprice isis mentionedmentioned inin t h eth e

contractcontract. .yy ItIt isis determineddetermined by by th eth e coursecourse of of dealingsdealings of of th eth e

partiesparties.. wh en wh en priceprice isis notnot fixedfixed by by any any of of th eth e aboveabovemodesmodes aa reasonablereasonable priceprice isis consideredconsidered asas th eth e priceprice of of

th eth e contractcontract. .


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TimeTimeyy W h en W h en timetime isis stipulatedstipulated regardingregarding t h eth e paymentpayment of of priceprice::--yy W h en W h en timetime isis stipulatedstipulated regardingregarding delivery delivery of of goodsgoods::--


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Sale and Agreement to SaleSale and Agreement to Saleyy W h en W h en property property isis transferredtransferred fromfrom sellerseller toto

buyerbuyer atat t h eth e timetime of of formationformation of of contract ,contract , anan

absoluteabsolute salesale occursoccurs..yy W h en W h en property property inin t h eth e goodsgoods isis toto bebe transferredtransferred

atat somesome futurefuture datedate andand notnot atat t h eth e timetime of of contract ,contract , th eth e contractcontract of of salesale isis termedtermed asas ananagreementagreement toto sellsell..


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Points of distinctionPoints of distinction- - sale and agreement tosale and agreement tosell.sell.

yy N ature of contractN ature of contract- -executedexecuted// executory executory..

yy Transfer of property Transfer of property- -immediate / future date.immediate / future date.

yy R igh tsR igh ts of buyer in case of of buyer in case of breac hbreac h --recovery of goods , recovery of goods , specific performance /specific performance /Damages.Damages.

yy R isk of lossR isk of loss-- buyer s / seller sbuyer s / seller s

yy R igh ts of seller in case of R igh ts of seller in case of breac hbreac h --suit for t h e price of suit for t h e price of goods / Damages.goods / Damages.

yy R igh t to resellR igh t to resell-- not available. /not available. /

may resale but liable formay resale but liable fordamages.damages.yy Insolvency of sellerInsolvency of seller-- buyer canbuyer can

recover goods / if price already recover goods / if price already paid proportionate amount canpaid proportionate amount canbe recovered.be recovered.

yy Insolvency of buyerInsolvency of buyer-- if price isif price isnot paid proportionate amountnot paid proportionate amountcan be recovered. delivery of can be recovered. delivery of goods can be demanded./goods can be demanded./seller can refuse delivery unlessseller can refuse delivery unlessfull price is paid.full price is paid.


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CASE STUDY Haris h v ManojCase Summary

y Haris h boug h t a second- h and refrigerator fromM anoj for R s 450.

y An agreement made bet w een t h em t h atrefrigerator s h ould be put in order at R s 320.

y Haris h took delivery.y Haris h found it is not w orking properly and gave

t w o parts for repair to M anoj.y Th e full Bill for repair h as not been paid.y M anoj claimed Lien on t w o parts and refuse to

return until balance is paid.


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Q UESTION S

y Is M anoj rig h t wh at h e did?

y Is th e Lien justified?


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JUDGEMENTy M anoj h as no rig h t of Lien.y His refusal to return until payment is made is not

justified.y Th e contract h ad been fully performed.y Once t h e refrigerator is h anded over , th e Lien h ad

ended.y Th e contract can t revive.


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CASE

y A, a je w eler w as entrusted w ith a diamond by Py He w as asked to obtain offers for ity A w as asked to sell to t h e offeror only after approval of

Py A sold th e diamond to S w ith out approval of Py

A absconded w

ith

th

e money y P sued to recover th e diamond


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JUDGEMENTy P cannot recover th e diamond from Sy Sale w as made by A as a mercantile agent in t h e

ordinary course of business.y Section 27 of Sale of Goods Act- Sale by person not the owner

and who does not sell them under the authority or with the consentof the owner, the buyer a cq uires no better title to the goods than theseller had,

y However the EXCE PT ION says that the Seller a cting as Mer cantile A gent should have the possession of the good with the consent of theowner,

y A ny sale made by him, when a cting in the ordinary course of business of a mer cantile agent, shall be as valid as if he wereexpressly authorized by the owner of the goods to make the same


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CASE -Mu th u Kish an v Mad h avji Devi Ch and, 1953 Mad. 817

y Aordered a certain quantity of ne w red c h ilies fromB

y Goods w ere dispatc h ed from Calcutta to Cuddalorey A paid for goods on presentation of s h ipping

documentsy Goods w ere cleared at Cuddalore port by A sagentsy Goods w ere sent on rail to Alandury On inspection , th e goods w ere found to be

deteriorated.y Arejected t h e goods but retained t h em as security

for price already paid.


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JUDGEMENT

y

Contractw

as for th

e delivery of ne w

ch iliesy Buyer can reject t h e goods as it is a

breach

of contract ( Section 37)y Th e buyer cannot retain t h e goods


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CASEAlu mini u m Ind u stries v. R Alu mini u m Ltd.

Th e plaintiff w as a company wh ich sold aluminium foil to t h edefendant , R company .

Th e plaintiff h ad elaborate standard conditions of sale wh ich

provided,

inter alia,

th

at th

e property w

ould not pass to th

ebuyer until t h ey h ad paid all t h at w as o w ing to t h e seller andtill t h en t h e buyer w ould keep t h e articles manufactured w ith th e foil as fiduciary o w ner of th e seller.

Th e buyer , if necessary , w as to store t h e articles in suc h a w ay th at it could be clearly recognized as t h e property of t h eseller till t h e time of payment.

Th e buyer eventually became insolvent o w ing to t h e sellerover R s.10,20,000.


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JUDGEMENTTh e Court of Appeal h eld t h at t h e property h adnot passed to t h e buyer and h e resold t h e goods

only as t h e agent of t h e original seller ( R eferSection 19, Section 46(1) and Section 47 (1) forDetail ).

Hence t h e latter w ere entitled to t h e retail price inpreference to t h e ot h er creditors of t h e insolventbuyer.


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CON DITION SCON DITION S A N D A N D

WA RR A N TIES WA RR A N TIES


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yy

CON D ITIONSCON D ITIONS ::Ess

ential Ess

ential (bas

ic(bas

ic termterm of of contract)contract)toto t h eth e mainmain purposepurpose of of th eth e contractcontract andand aa breac hbreac hof of wh ich wh ich aggrievedaggrieved party party cancan terminateterminate th eth econtractcontract. .

yy W A RR A NTIES W A RR A NTIES:: C ollateral C ollateral ( su bs idiary( su bs idiary toto contract)contract)toto t h eth e mainmain purposepurpose of of th eth e contractcontract andand aa breac hbreac hof of wh ich wh ich aggrievedaggrieved party party cancan claimclaim damage sdamage s only only..

CON DITION S AN D W ARR ANTIE SCON DITION S AN D W ARR ANTIE S


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Conditions vs. WarrantiesT w o cases involving opera singers s h o w th e difference

bet w

een conditions and w

arranties .


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In Poussard vs Spiers and Pond,y

M rs. Poussard w as an opera singer. S h e agreed to singin an opera starting on 28 November. Ho w ever, sh ebecame ill and w as unable to sing until 4 December.

y Th e opera company h ad to h ire anot h er singer so t h atth e opera could start on 28 November.

y Th ey could only get anot h er singer if t h ey h ired h er forall th e performances of t h e opera.y Th ey did t h is and refused t h e services of M rs Poussard

once s h e w as bettery M rs. Poussard raised a court action to try to make t h e

company pay h ery Ho w ever, th e court said t h at M rs. Poussard breac h ed a

condition of th e contract wh en s h e w as unable toperform on 28 November

y Th is w as a basic term of t h e contract


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Th e position was different in Bettini v Gyey Bettini w as an opera singery He agreed to sing in London in a number of t h eatres

beginning on 30 M archy He also agreed t h at h e w ould arrive in London 6 days

before t h e first performance in order to practice.y Bettini became ill and did not arrive in London until 3 days

before t h e first performancey Th e opera company refused to allo w h im to singy Th ey said h e h ad breac h ed t h e contracty

Ho w

ever,

th

e court said th

at th

e part of th

e agreementabout practicing w as a warranty not a term .y Th at meant it w as not a basic part of t h e contract. It w as

subsidiary part.


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Types of Conditions and W arrantiesTypes of Conditions and W arrantiesyy EXPR ESSEXPR ESS CON DITION SCON DITION S A N D A N D WA RR A N TIES WA RR A N TIES..-- wh ich

are expressly provided in t h e contract and areare agreedagreedtoto byby thethe partiesparties. .

yy ExpressExpress conditionsconditions areare usuallyusually denoteddenoted byby languagelanguagesuchsuch asas "if","if", "on"on conditioncondition that",that", "provided"provided that",that", "I"I thetheeveneven that",that", andand "subject"subject to"to" toto makemake anan eventevent aaconditioncondition. .

yy ButBut usuallyusually inin aa disputedispute itit isis thethe courtcourt whichwhich decidesdecides onon

thethe basisbasis of of interpretationsinterpretations of of terms,terms, surroundingsurroundingcircumstances,circumstances, termsterms of of contractcontract andand intentionsintentionswhether whether itit isis aa conditioncondition or or warrantywarranty. .


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Impl ied WarrantiesImpl ied Warrantiesyy As As toto quitequite possession ,possession , freedomfreedom fromfrom encumbrances ,encumbrances ,

quality quality oror fitnessfitness forfor aa particularparticular purposepurpose wh ich wh ich may may bebeannexedannexed by by th eth e usageusage of of trade ,trade , toto disclosedisclose dangerousdangerousnaturenature of of goodsgoods..

1.Warranty of quiet possession [sec.14(b)]- th e buyer s h all h ave and enjoy quiet possession of t h e good- Disturbance may arise due to defective title of t h eseller.

2. Warranty of freedom from encumbrances [sec.14(c)]- goods if after w ards found to be subject to a c h arge and t h e buyer h as to disc h arge t h e same

th

ere is a breach

of w

arranty.3. Warranty as to quality or fitness by usage of trade [sec16(4)]4. Warranty to disclose dangerous nature of goods- certain

necessary w arning may be given about t h e goods to buyer if seller perceivesand kno w s potential dangerous event t h at may occur due to t h e use of t h e

said good.


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CAVEAT EMP TO R - let t h e b u yer beware

y In a contract of sale of goods t h e seller is under no duty to reveal unflattering trut h s about t h e goods sold.

y Th erefore , wh en a person buys some goods , h e mustexamine t h em t h oroug h ly.

y

If th

e goods turn out to be defective or do not suith

ispurpose , h e cannot blame anybody excepting h imself.


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D ifference betweenCondition & Warranty

ConditionEssential Affects t h e legality of contractM ay be treated asbreac h of w arranty Contract can becancelled

W arranty Subsidiary It does not affect

Warranty cannot

become a condition At best damages are tobe paid


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R emedies for Breac h of Contract1. Seller s Suit:

Suit for priceSuit for damages for non acceptance of t h e goodsSuit for interest

2. Buyer s Suit:-Suit for damages for non-delivery of t h e goodsSuit for specific performanceSuit for breac h of w arranty


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CASEL w as sh opping in a self-service super market. Hepicked up a bottle of soft drinks from a s h elf.

W h ile h e w as examining it , th e bottle exploded inh is h and and injured h im.He sued t h e Aerated Drinks Co. , wh ich h as bottledth e drink , to recover damages for breac h of condition arising from t h e sale of food.


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JUDGEMENTL w ould not succeed.A w arranty or condition does not arise unless t h ere

is a sale.N o sale occurs wh en a customer in a self-servicesuper market takes an article from a s h elf since h emay decide not to buy and pay for it and return itto t h e sh elf.As th ere w as no sale , th ere w as no impliedcondition.


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CASECase Summary y A firm of confectioners materials agreed to sell

condensed milk in tins to a bakery.y Th e milk s h ould be of certain standard.y Th e bakery received t h e sh ipping documents and

paid t h e price.y

Th e goods wh ich arrived is of a different trademark of anot h er manufacturer.y Th e tins w ere detained by customer aut h ority.


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Q UESTION S

y Is th e seller responsible?

y Can t h e buyer get back t h e price?

y W h at is t h e righ t of buyer?


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JUDGEMENTy Th e seller is responsible.y Th e seller h as broken t h e implied condition

relating to title to th

e goods.y Th e seller h as no rig h t to sell ot h er different milktins.

y Th e buyer could claim and get back t h e price.y

Th e buyer h as also t h e righ t to sue for damages.


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Documents

Sales of Good Act