SALE OF GOOD ACT, 1930Name :Ramanand karwaShri shiwaji law college

parbhani

DEFINITION A contract of sale of goods is a contract where by the seller transfer or agrees to transfer the property in goods to the buyer for a price.

ESSENTIAL FOR CONTRACT OF SALE 1. Two parties:

2. Goods:- goods means every kind of movable property. Ex. Money , stock and shares, growing crops3. Price:- Price is a consideration for contract of sale. If price is not paid then it is not a contract of sale.

4.Transfer of general property

5.Essential elements of valid contract: All the essential elements of a valid contract must be present in contract of sale Lawful consideration ,lawful object, free consent

SALE AND AGREEMENT TO SALE

Sale1.immediatly transfer2.It is a executed contract.3.A contract of sale may be abaolute or conditional.4.Risk passes with the ownership.

Agreement to sale1.Transfer in future.

2.it is executory contract.3.An agreement to sale is always conditional.4.The seller is to bear the risk of loss even though the goods are in possession of the buyer

CONDITION AND WARRANTYCondition : Sec12(2) of sale of goods Act ,1930 has defined condition as: " A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat a contract as repudiated"

Warranty :

Sec.12(3) of sale of goods act 1930 has defined warranty as:

" A warranty is a stipulation which is

subsidiary or collateral to the main purpose of the contract, the breach of which gives rise to only claim for damages but not to a right to reject the goods and treat the contract as a repudiated"

DISTINCTION BETWEEN CONDITION AND WARRANTY

Condition1) Condition is essential for main

purpose of contract.

2) Breach of condition may be treated as breach of warranty.

3) The branch of condition gives a aggrieved party right to sue for damages as well as the right to repudiate the contract.

Warranty1) Warranty is a subsidiary of a

Collateral the main purpose of contract.

2) Breach of warranty cannot be treated as breach of condition.

3) A breach of warranty gives only the right to sue for damages.

CONSEQUENCES OF BREACH OF CONDITION

If seller makes breach of condition the Buyer May reject the goods, and

If the breach is by the buyer , seller May treat as a contract.

IMPLIED CONDITION (SEC. 14)

Sometimes in contract of sale implied condition may be available these are as follows:

1. Implied condition in sale by description .

2. Implied condition in sale by sample (Section 15) Ex. Medical store

3. Implied condition as to title.

4. Condition as to quality and fitness.

5. condition as to wholesomeness .

IMPLIED WARRANTY

Warranty as to quiet possession.

Warranty as to tree from encumbrance.

Warranty to disclose dangerous nature goods.

Warranty as to usage of trade [sec. 16(3)]

DOCTORINE OF CAVEAT EMPTOR(SEC 16)

Caveat emptor is the Latin word which means let the Buyer be aware.

It is fundamental rule of contract of sale.

Indirectly its States that the seller can sell anything and its duty of Buyer to verify the goods and check whether it's suits for its purpose which the Buyer wants.

C.L. words vs. Hobbs

EXCEPTION TO CAVEAT EMPTOR

1. Condition as to quality or fitness for Buyers purpose (sec. 16(1)):

If Buyer makes his purpose clear to the Seller and buys the goods relying upon his skill judgment, then there is implied condition that the goods shall be fit for the buyers specific purpose and in such case the doctrine of Caveat emptor does not apply.

2. Merchantable quality (sec.16(2))

The goods supplied such a description which it is in the course of the Seller business to supplies.

But if Buyer tells the seller the purpose for which goods are require for him Reliance its place on the seller.

3. Condition as to wholesomeness: This condition is applicable in case of

eatable. Ex. expiry goods

NEMO DAT QUAD NON HEBAT

Nemo dat Quad non hebat means no body can transfer a better title than he himself has. Only the owner can pass a better title.

Exception to the rule:-

1. sale by mercantile agent(sec.27)

2. Sale by joint owners

3. Sale by person in possession under voidable contract.(sec.29)

4. Sale by a person before actual possession of property.

5. Resale of goods by unpaid seller

6. Sale by pawnee in default of payment.

7. Sale by the finder of goods

RULES REGARDING DELIVERY OF GOODS

seller Is bound to deliver the goods as per the terms & condition of contract.

if any default in part of seller regarding the delivery of goods the buyer may reject the goods and can claim the damages plus compensation.

1.Time and place of delivery:

If the seller is not delivered the goods within a time and ordered place then it is a breach of condition as well as breach of contract.

2. Effect of delivery of goods in wrong contity or of different description:

3. the risk were goods are deliver at a distinct place:

4. delivery to carrier or wharfigner (sec.39):

5. installment delivery of goods:

Thank you