lab_session xx sale of goods act.ppt

8/9/2019 LAB_Session xx Sale of Goods Act.ppt

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Sale of Goods Act 1930

By Sudha AgarwalChartered Accountant


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Contents

1) Introduction and Definitions2) Essentials of a Contract of Sale3) Difference between sale and agreement to sale

) Condition and !arrant"

#) $assing of t%e $ro&ert" from t%e Seller to t%e'u"er

() $erformance of t%e Contract of Sale) *ig%ts of an +n&aid Seller

,) 'reac% of Contract to deli-er S&ecific orAscertained Goods


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1) Introduction

Sale of goods act, which came into force on 1st July, 1930.Sale of Goods Act is one of very old mercantile law.Sale of Goods is one of the s ecial ty es of !ontract."nitially, this was art of "ndian !ontract Act. #ater these sections in!ontract Act were deleted, and se arate Sale of Goods Act was

assed in 1930.

$he Sale of Goods Act is com limentary to !ontract Act.Basic rovisions of !ontract Act a ly to contract of Sale of Goodsalso.Basic re%uirements of contract i.e. offer and acce tance, legallyenforcea&le agreement, mutual consent, arties com etent tocontract' free consent, lawful o&(ect, consideration etc. a ly tocontract of Sale of Goods also.$his Act defines )Sale* as +A contract of sale of goods is a contractwhere&y the seller transfers or agrees to transfer the ro erty ingoods to the &uyer for a rice$here may &e a contract of sale &etween one art-owner and another.

A contract of sale may &e a&solute or conditional.


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Definitions

1/ +Buyer* means a erson, who &uys or agrees to &uygoods,/ ) elivery* means voluntary transfer of ossession

from one erson to another.3/ )Sale* means transfer of ro erty in goods for a rice.

2/ ) ire 4 5urchase Agreement* means the sellerdelivers the ossession of the goods to the other ersonand he charges rent for the goods. After receiving the

rice of the goods, the ownershi of the goods is assedon to the urchaser

6/ )Barter e7change* means e7change of goods forgoods.

8/ )Bailment* means only the ossession is transferredfrom the &ailor to the &ailee. Such transactions may &efor the ur ose of ee ing the goods in the safe custodyor may &e for furnishing security.


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Essential of a Contract of Sale

1/ $here must &e at least two arties as a erson cannot sellgoods to himself. owever there may &e a contract of sale&etween one art-owner and another.

/ $here must &e a transfer or agreement to transfer theownershi of goods from one erson to another. :ere transfer of

ossession is not sale.

3/ $he su&(ect matter of sale must &e +goods and mova&le. $hetransfer of immova&le ro erty is not governed &y Sale of Goods

Act,1930.2/ $he consideration for sale is called rice which should &e

stated in terms of +money . ;7change of +goods for +goods is&arter and not sale. owever rice may &e aid artly in terms ofmoney and artly in ind.

6/ All essential elements of a valid contract must &e resent in acontract of sale.

8/ A contract of sale may &e a&solute or conditional.


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Difference between sale andagreement to sale


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Classification of goods

1. ;7isting goods are owned &y the seller at the time ofsale. $hey are of the following ty eshere &y a contract of sale theseller ur orts to effect a resent sale of future goods ,the contract o erates as an agreement to sale.3. !ontingent goods 4$hese are goods the ac%uisition ofwhich &y seller de ends u on a contingency which mayor may not ha en.


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Effect of Destruction of Goods

Goods perishing before making of contract 4 >herethere is a contract for the sale of s ecific goods, thecontract is void if the goods without the nowledge of theseller have, at the time when the contract was made,

erished or &ecome so damaged as no longer to answer

to their descri tion in the contract.Goods perishing before sale but after agreement tosell 4 >here there is an agreement to sell s ecificgoods, and su&se%uently the goods without any fault onthe art of the seller or &uyer erish or &ecome sodamaged as no longer to answer to their descri tion inthe agreement &efore the ris asses to the &uyer, theagreement is there&y avoided.


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$rice

"n a contract of sale + rice to the consideration forsale of goods and is e7 ressed in terms of money."t forms essential art of contract.Ascertainment of $rice

1/ $he rice in a contract of sale may &e fi7ed &ythe contract or may &e left to &e fi7ed in mannerthere&y agreed or may &e determined &y thecourse of dealing &etween the arties.

/ >here the rice is not determined inaccordance with the foregoing rovisions, the&uyer shall ay the seller a reasona&le rice.>hat is a reasona&le rice is a %uestion of factde endent on the circumstances of each

articular case.


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C./DI I./ A/D !A**A/

Definitions1/ A sti ulation in a contract of sale with reference togoods which are the su&(ect thereof may &e a condition ora warranty.

/ A condition is a sti ulation essential to the mainur ose of the contract, the &reach of which gives rise to

right to treat the contract as re udiated.3/ A warranty is a sti ulation collateral to the mainur ose of the contract, the &reach of which gives rise to a

claim for damages &ut not to a right to re(ect the goodsand treat the contract as re udiated.

2/ >hether a sti ulation in a contract of sale is conditionor a warranty de ends in each case on the construction ofthe contract, a sti ulation may &e a condition though

called warranty in a contract.


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!%en condition to be treated aswarrant"

1/ >here a contract of sale is su&(ect to any condition to&e fulfilled &y the seller, the &uyer may waive thecondition or elect to treat the &reach of the condition as a&reach of warranty and not as a ground for relating thecontract as re udiated.

/ >here a contract of sale is not severa&le and the&uyer has acce ted the goods or art thereof, the &reachof any condition to &e fulfilled &y the seller can only &etreated as a &reach of warranty and not as a ground forre(ecting the goods and treating the contract asre udiated, unless there is a term of the contract, e7 ress

or im lied, to that effect.3/ ?othing in this section shall affect the case of any

condition or warranty fulfillment of which is e7cused &ylaw &y reason of im ossi&ility of otherwise.


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Conditions and !arranties ma" beeit%er e &ressed or im&lied

>hen terms of contract e7 ressly rovide forthem, they are nown as e7 ress conditions orwarranties."m lied conditions and warranties are

incor orated in every contract of sale unless thecircumstances show a different intentionIm&lied conditions are of t%e following t"&es

i/ !ondition as to titleii/ Sale &y descri tioniii/ !ondition as to %uality or fitnessiv/ Sale &y sam le

d d b


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Im&lied warranties are of following t"&esi/ >arranty of %uiet ossession - "f the &uyer in

any way is distur&ed from en(oying the %uietossession of goods urchased &ecause of

seller s defective title, the &uyer can claimdamages from seller.

ii/ >arranty of freedom from encum&rances -

$he &uyer is also entitled to additional warrantythat the goods are free from any charge or rightof any third arty, not declared or nown to the&uyer.

Conditions and !arranties ma" beeit%er e &ressed or im&lied


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Goods must be ascertained

>here there is a contract for the sale ofunascertained goods, no ro erty in the goods istransferred to the &uyer unless and until thegoods are sanctioned

Doctrine of Caveat Emptor 4 !aveat ;m tor means +let&uyer &e aware . "t is a fundamental rinci le of law ofsale of goods and im lies that the seller is under noo&ligation to oint out the defects in his own goods. $hedoctrine is however su&(ect to following e7ce tionshere there is a contract for the sale of unascertained or future goods &y descri tionand goods of that descri tion and in a delivera&le state are unconditionally a ro riatedto the contract, either &y the seller with the assent of the &uyer or &y the &uyer with theassent of the seller, the ro erty in the goods thereu on asses to the &uyer. Suchassent may &e e7 ressed or im lied, and may &e given either &efore or after thea ro riation is made.

/ elivery to carrier 4 >here, in ursuance of the contract, the seller delivers thegoods.Goods on a&&ro-al or :on sale or return;>hen goods are delivered to the &uyer on a roval or on sale or return or other similarterms, the ro erty therein asses to the &uyer@

a/ >hen he signifies his a roval or acce tance to the seller he does any other actado ting the transaction.&/ "f he does not signify his a roval or acce tance to the seller &ut retains the goods

without giving notice of re(ection, then, if a time has &een fi7ed for the return of thegoods, on the e7 iration of such time, and, if not time has &een fi7ed, on the e7 irationof a reasona&le time.+nless ot%erwise agreed t%e goods remain at t%e seller;s ris< until t%e &ro&ert"t%erein is transferred to t%e bu"er but w%en t%e &ro&ert" t%erein is transferred tot%e bu"er t%e goods are at t%e bu"er;s ris< w%et%er deli-er" %as been made ornot=


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Sale b" &erson not t%e owner

>here goods are sold &y a erson who is not the owner thereof and who

does not sell them under the authority or with the consent of the owner, the&uyer ac%uires no &etter title to the goods than the seller had, unless theowner of the goods is &y conduct recluded from denying the seller sauthority to sell.

owever, this is su&(ect to certain e7ce tions as follows oint owners "f one of several (oint owners of goods hasthe sole ossession of them &y ermission of the co-owners, the ro erty inthe goods is transferred to any erson who &uys them of such (oint owner ingood faith and has not at the time of the contract of sale notice that the sellerhas not authority to sell.


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Sale b" &erson not t%e owner 8iii) Sale b" &erson in &ossession under -oidable contract >hen theseller of goods has o&tained ossession thereof under a voida&le contract,&ut the contract has not rescinded at the time of the sale, the &uyer ac%uiresa good title to the goods, rovided he &uys them in good faith and withoutnotice of the seller s defect of title.8i-) Seller or bu"er in &ossession after sale

a/ >here a erson, having sold goods, continues or is in ossession of the

goods or of the documents of title to the goods, the delivery or transfer &ythat erson or &y a mercantile agent acting for him of the gods or documentsof title under any sale, ledge o other dis osition thereof to any ersonreceiving the same in good faith and without notice of the revious sale shallhave the same effect as if the erson ma ing the delivery to transfer weree7 ressly authorised &y the owner of the gods to ma e the same.

&/ >here a erson, having &ought or agreed to &uy goods, o&tains with thecon sent of the seller, ossession of the goods or the documents of title to thegoods, the delivery or transfer &y that erson or &y a mercantile agent actingfor him, of the goods or documents of tile under any sale, ledge or otherdis osition thereof to any erson receiving the same in good faith and withoutnotice of any lien or other right of the original seller in res ect of the godsshall have effect as if such lien or right did not e7ist.


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Sale b" &erson not t%e owner

8-) Sale b" esto&&el >here the owner &y his conduct or omission,

leads the &uyer to &elieve that the seller has authority to sell, he isesto ed from denying the fact afterwards. $he &uyer thus gets a&etter title than the seller.=or e7am le A tells B in resence of ! that A is agent of !. ! maintainssilence instead of denying it. #ater if A sells ! s goods to B, ! cannot

dis ute B s title to the goods.8-i) Sale &y an un aid seller after e7ercising his right of lien orsto age in transit.8-ii) E ce&tions in ot%er Acts

a/ Sale &y fficial eceiver or #i%uidator.

&/ Sale &y a awnee or ledgee in certain cases.c/ Sale &y finder of lost goods in certain cases.

It is t%e dut" of t%e seller to deli-er t%e goods and of t%e bu"er toacce&t and &a" for t%em in accordance wit% t%e terms of t%econtract of sale

$E*4 *6A/CE 4 5E


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$E*4.*6A/CE .4 5EC./ *AC .4 SA7E

>ith regards the Seller it means, delivery of goods to the &uyer. =rom &uyer sside the erformance means the acce tance of the delivery of goods and

ayment for them as er the terms and conditions of sale.$a"ment and deli-er"the seller shall &e ready and willing to give ossession of the goods to the &uyerin e7change for the rice, and the &uyer shall &e ready and willing to ay the ricein e7change for ossession of the goodsDeli-er"

elivery is defined as the voluntary transfer of ossession from one erson toanother.elivery of goods sold may &e made &y doing anything which the arties agree

shall &e treated as delivery or which has the effect of utting the goods in theossession of the &uyer or of any erson authorised to hold them on his &ehalf.

*ules as to deli-er" 81) elivery of goods and ayment of rice are concurrent conditions unless

otherwise agreed u on.82) Effect of &art deli-er" A delivery of art of goods, in rogress of the delivery of the whole has the sameeffect, for the ur ose of assing the ro erty in such goods, as a delivery of thewhole, &ut a delivery of art of the goods, with an intention of severing it from thewhole, does not o erate as a delivery of the remainder.83) 'u"er to a&&l" for deli-er"

A art from any e7 ress contract, the seller of goods in not &ound to deliver themuntil the &uyer a lies for delivery

$E*4 *6A/CE 4 5E C / *AC


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$E*4.*6A/CE .4 5E C./ *AC.4 SA7E

8 ) $lace of deli-er"goods sold are to &e delivered at the lace at which they are the time of thesale, and goods agreed to &e sold are to &e delivered at the lace at whichthey are at the time of the agreement to sell, if not then in e7istence, at the

lace at which they are manufactured or roduced.8#) ime of deli-er">here under the contract of sale the seller is &ound to send the goods to the

&uyer, &ut no time for sending them is fi7ed, the seller is &ound to send themwithin a reasona&le time.emand or tender of delivery may &e treated as ineffectual unless made at a

reasona&le hour.8() Goods in &ossession of a t%ird &erson>here the goods at the time of sale are in the ossession of a third erson,there is no delivery &y seller to &uyer unless and until such third ersonac nowledges to the &uyer that he holds the goods on his &ehalf.8 ) Cost of deli-er"Cnless otherwise agreed, the e7 ense of and incidental to utting the goodsinto a delivera&le state shall &e &orne &y the seller.8,) 6ode of deli-er"

elivery of goods may &e actual, sym&olic or constructive.

$E*4 *6A/CE 4 5E C / *AC


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$E*4.*6A/CE .4 5E C./ *AC.4 SA7E

89) Deli-er" of wrong ?ualit"1/ >here the seller delivers to the &uyer a %uantity of good less than he contracted

to sell, the &uyer may re(ect them, &ut if the &uyer acce ts the goods so delivered heshall ay for them at the contract rate.

/ >here the seller delivers to the &uyer a %uantity of goods larger than hecontracted to sell the &uyer may acce t the goods included in the contact and re(ectthe rest, or he may re(ect the whole. "f the &uyer acce ts the whole of the goods sodelivered, he shall ay for them at the contract rate.

3/ >here the seller delivers to the &uyer the goods he contract to sell mi7ed with

goods of a different descri tion not included in the contract, the &uyer may acce tthe goods which are in accordance with the contract and re(ect the rest, or mayre(ect the whole.

2/ $he rovisions of this section are su&(ect to any usage of trade, s ecialagreement or course of dealing &etween the arties.810) Installment deli-er"

1/ Cnless otherwise agreed, the &uyer of goods is not &ound to acce t delivery

thereof &y installments./ >here there is a contract for the sale of goods to &e delivered &y statedinstallments which are to &e se arately aid for, and the seller ma es no delivery ordefective delivery in res ect of one or more installments, or the &uyer neglects orrefuses to ta e delivery of or ay for one or more installments, it is a %uestion in eachcase de ending on the terms of the contract and the circumstances of the case,whether the &reach of contract is a re udiation of the whole contract, or whether it isa severa&le &reach giving rise to a claim for com ensation, &ut not a right to treat the

whole contract as re udiated.

$E*4 *6A/CE 4 5E C / *AC


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$E*4.*6A/CE .4 5E C./ *AC.4 SA7E

811) Deli-er" to carrier or w%arfinger 1/ >here, in ursuance of a contract of sale, the seller is authorised or re%uired to send the

goods to the &uyer, delivery of the goods to a carrier, whether named &y the &uyer or not, forthe ur ose of transmission to the &uyer, or delivery of the goods to a wharfinger for safecustody, is rima facie deemed to &e a delivery of the goods to the &uyer.

/ Cnless otherwise authorised &y the &uyer, the seller shall ma es such contract with thecarrier or wharfinger on &ehalf of the &uyer as may &e reasona&le having regard to thenature of the goods and the other circumstances of the case. "f the seller omits so to do,and the goods are lost or damaged in course of transit or whilst in the custody of thewharfinger, the &uyer may decline to treat the delivery to the carrier or wharfinger as a

delivery to himself, or may hold the seller res onsi&le in damages.3/ Cnless otherwise agreed, where goods are sent &y the seller to the &uyer &y a routeinvolving sea transit, in circumstances in which it is usual to insure, the seller shall give suchnotice to the &uyer as may ena&le him to insure them during their sea transit and if the sellerfails so to do, the goods shall &e deemed to &e at his ris during such sea transit.812) *is< w%ere goods are deli-ered at distant &lace>here the seller of goods agrees to deliver them at his own ris at lace other than thatwhere they are when necessarily incident to the course of transit.

813) 'u"er;s rig%t of e amination t%e goods1/ >here goods are delivered to the &uyer which he has not reviously e7amined, he is not

deemed to have acce ted them unless and until he has a reasona&le o ortunity ofe7amining them for the ur ose of ascertaining whether they are in conformity with thecontract.

/ Cnless otherwise agreed, when the seller tenders delivery of goods to the &uyer, he is&ound, on re%uest, on re%uest, to afford the &uyer a reasona&le o ortunity of e7aminingthe goods for the ur ose of ascertaining whether they are in conformity with the contract.

$E*4 *6A/CE 4 5E


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$E*4.*6A/CE .4 5EC./ *AC .4 SA7E

81 ) 'u"er not bound to return re>ected goodsCnless otherwise agreed, where goods are delivered tothe &uyer and he refuses to acce t them, having the rightso to do, he is not &ound to return them to the seller, &ut itis sufficient it he intimates to the seller that he refuses toacce t them.81#) 7iabilit" of bu"er for neglecting or refusingdeli-er" of goods>hen the seller is ready and willing to deliver the goodsand re%uests the &uyer to ta e delivery, and the &uyerdoes not within a reasona&le time after such re%uest ta edelivery of the goods, he is lia&le to the seller for any lossoccasioned &y his neglect or refusal to ta e delivery andalso for a reasona&le charge for the care and custody ofthe goods. ?othing in this section shall affect the rights ofthe seller where the neglect or refusal of the &uyer to ta edelivery amounts to a re udiation of the contract

$E*4 *6A/CE 4 5E


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$E*4.*6A/CE .4 5EC./ *AC .4 SA7E

Deli-er" are of following t"&esActual - "n this case goods are handed over &y the sellerto the &uyer or his authoriDed agent.S"mbolic - >hen goods are &ul y and actual delivery isnot ossi&le, the delivery may &e sym&olic ,e.g. handing

over the eys of the godown.Constructi-e -$his ha ens in the ways mentioned&elowhen seller holding the ossession of goods, agreesto hold them on &ehalf of the &uyer.

ii/ >hen &uyer holding the ossession of goods, withseller s consent, holds them as owner.iii/ >hen a third erson holding the ossession of goods

on &ehalf of seller, ac nowledges to hold them on &ehalf&uyer.


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*IG5 S .4 A/ +/$AID SE77E*

$he seller of the goods ossess some rights which he can use tosecure ayment of the rice.

1/ $he seller of goods is an )un aid seller* -a/ >hen the whole of the rice has not &een aid or tendered.&/ >hen a &ill of e7change or other negotia&le instrument has &een

received as conditional ayment and the conditions on which it wasreceived has not &een fulfilled &y reason of the dishonour of theinstrument or otherwise.

/ $he term )seller* includes any erson who is in the osition of aseller, as, for instance, an agent of the seller to whom the &ill oflading has &een endorsed, or a consignor or agent who has himself

aid, or is directly res onsi&le for, the rice.Illustrations

a/ E sells goods worth s. 60,000F- to B on credit of 6 months. After6 months B did not ay the rice. E shall &e regarded as an un aidseller.

&/ "n the a&ove e7am le if B acce ts a &ill of e7change and it isdishonoured &y him on due date, A shall &e considered as an un aidseller.


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*IG5 S .4 A/ +/$AID SE77E*

$A* DE7I@E*>here an un aid seller has made art delivery of the goods, he maye7ercise his right of lien on the remainder, unless such art delivery has&een made under such circumstances as to show an agreement to waivethe lien.

E*6I/A I./ .4 7IE/1/ $he un aid seller of goods losses his lien thereon@

a/ >hen he delivers the goods to a carrier or other &ailee for the ur ose oftransmission to the &uyer without reserving the right of dis osal of thegoods,

&/ >hen the &uyer or his agent lawfully o&tains ossession of the goods,c/ By waiver thereof.

/ $he un aid seller of goods, having a lien thereon, not lose his lien &yreason only that he has o&tained a decree for the rice of the goods.8b) *IG5 .4 S .$$AGE I/ *A/SI>hen the &uyer of goods &ecomes insolvent, the un aid seller who has

arted with the ossession of the goods has the right of sto ing them intransit, that is to say, he may resume ossession of the goods as long asthey are in the course of transit, and may retain them until ayment or tenderof the rice.


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*IG5 S .4 A/ +/$AID SE77E*D+*A I./ .4 *A/SI

1/ Goods are deemed to &e in course of transit from the time when they are deliveredto a carrier or other &ailee for the ur ose of transmission to the &uyer, until the &uyeror his agent in that &ehalf ta es delivery of them from such carrier or other &ailee.

/ "f the &uyer or his agent in that &ehalf o&tains delivery of the goods &efore theirarrival at the a ointed destination, the transit is at an end.

3/ "f, after the arrival of the goods at the a ointed destination, the carrier or other&ailee ac nowledges to the &uyer or his agent that he holds the goods on his &ehalfand continues in ossession of them as &ailee for the &uyer or his agent, the transit isat an end and it is immaterial that a further destination for the goods may have &eenindicated &y the &uyer.

2/ "f the goods are re(ected &y the &uyer and the carrier or other &ailee continues inossession of them, the transit is not deemed to &e at an end, even if the seller has

refused to receive them &ac .6/ >hen goods are delivered to a shi chartered &y the &uyer, it is a %uestion

de ending on the circumstances of the articular case, whether they are in the

ossession of the master as a carrier or as agent of the &uyer.8/ >here the carrier or other &ailee wrongfully refuses to deliver the goods to the&uyer or his agent in that &ehalf, the transit is deemed to &e at an end.

/ >here art delivery of the goods has &een made to the &uyer or his agent in that&ehalf, the remainder of the goods may &e sto ed in transit, unless such artdelivery has &een given in such circumstances as to show an agreement to give u

ossession of the whole of the goods.


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*IG5 S .4 A/ +/$AID SE77E*

5.! S .$$AGE I/ *A/SI IS E44EC ED1/ $he un aid seller may e7ercise his right to sto age in transit either &y

ta ing actual ossession of the goods, or &y giving notice of his claim to thecarrier or other &ailee in whose ossession the goods are.Such notice may &e given either to the erson in actual ossession of thegoods or to his rinci al."n the later case the notice, to &e effectual, shall &e given at such time and insuch circumstances, that the rinci al, &y the e7ercise of reasona&lediligence, may communicate is to his servant or agent in time to revent adelivery to the &uyer.

/ >hether notice of sto age in transit is given &y the seller to the carrieror other &ailee in ossession of the goods, he shall re-deliver the goods to,or according to the directions of, the seller.$he e7 enses of such re-delivery shall &e &orne &y the seller.

E44EC . S+' SA7E .* $7EDGE ' '+ E*1/ Su&(ect to the rovisions of this Act, the un aid seller s right of lien or

sto age in transit is not affected &y any sale or other dis osition of the godswhich the &uyer may have made, unless the seller has assented thereto.


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*IG5 S .4 A/ +/$AID SE77E*

5rovided that where a document of title to goods has &een issued or lawfullytransferred to any erson as &uyer or owner of the goods, and that ersontransfers the document to a erson who ta es the document in good faithand for consideration, then, if such last mentioned transfer was &y way ofsale, the un aid seller s right of lien of sto age in transit is defeated, and, ifsuch last mentioned transfer was &y way of ledge or other dis osition forvalue, the un aid seller s right of lien or sto age in transit can only &ee7ercised su&(ect to the rights of the transferee.

/ >here the transfer is &y way of ledge, the un aid seller may re%uire theledge to have the amount secured &y the ledge satisfied in the firstinstance, as far as ossi&le, out of any other goods or securities of the &uyerin the hands of the ledge and availa&le against the &uyer.8c) *IG5 .4 *E SA7E

1/ A contract of sale is not rescinded &y the mere e7ercise &y an un aidseller of his right of lien or sto age in transit.

/ >here the goods are of a erisha&le nature, or where the un aid sellerwho has e7ercised his right of lien or sto age in transit gives notices to the&uyer of his intentions to re-sell, the un aid seller may, if the &uyer does notwithin a reason a&le time ay or tender the rice, re-sell the goods within areasona&le time and recover from the original &uyer damages for any lossoccasioned &y his &reach of contract, &ut the &uyer shall not &e entitled toany rofit which may occur on the re-sale.


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*IG5 S .4 A/ +/$AID SE77E*

"f such notices are not given, the un aid seller shall not &e entitled torecover such damages and the &uyer shall &e entitled to the rofit, ifany, on the re-sale.

3/ >here an un aid seller who has e7ercised his right of lien orsto age in transit re-sells the goods, the &uyer ac%uires a good titlethereto as against the original &uyer, notwithstanding that no notice of

the resale has &een given to the original &uyer.2/ >here the seller e7 ressly reserves a right of re-sale in case the&uyer should ma e default, and on, the &uyer ma ing default, re-sellsthe goods, the original contract of sale is there&y rescinded, &utwithout re(udice to any claim which the seller may have fordamages.II= *IG5 AGAI/S 5E '+ E* $E*S./A77

a/ Suit for rice.&/ Suit for damages for non-acce tance.c/ e udiation of contract.d/ Suit for interest


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'*EAC5 .4 C./ *AC . DE7I@E* S$ECI4IC.* ASCE* AI/ED G..DS

I/ *.D+C I./

Su&(ect to the rovisions of !ha ter "" of the S ecific elief Act, 1H , in any suit for&reach of contract to deliver s ecific or ascertained goods, the !ourt may, if it thin s fit,one the a lication of the laintiff, &y its decree direct that the contract shall &e

erformed s ecifically, without giving the defendant the o tion of retaining the goodson ayment of damages. $he decree may &e unconditional, or u on such terms andconditions as to damages, ayment of the rice or otherwise, as the !ourt may deem

(ust, and the a lication of the laintiff may &e made at any time &efore the decree.S+I 4.* $*ICE

1/ >here under a contract of sale the ro erty in the goods has assed to the &uyerand the &uyer wrongfully neglects or refuses to ay for the goods according to theterms of the contract, the seller may sue him for the rice of the goods.

/ >here under a contract of sale the rice is aya&le on a day certain irres ective ofdelivery and the &uyer wrongfully neglects or refuses to ay such rice, the seller maysue him for the rice although the ro erty in the goods has not assed and the goodshave not &een a ro riated to the contract

DA6AGES 4.* /./ ACCE$ A/CE>here the &uyer wrongfully neglects or refuses to acce t and ay for the goods, theseller may sue him for damages for non-acce tanceDA6AGES 4.* /./ DE7I@E*>here the seller wrongfully neglects or refuses to deliver the goods to the &uyer, the&uyer may sue the seller for damages for non-delivery.

'*EAC5 4 C / *AC DE7I@E* S$ECI4IC *


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EAC5 .4 C./ AC . DE7I@E S$ECI4IC .ASCE* AI/ED G..DS

*E6ED 4.* '*EAC5 .4 !A**A/1/ >here there is a &reach of warranty &y the seller, or where the

&uyer elects or is com elled to treat any &reach of a condition on theart of the seller as a &reach of warranty, the &uyer is not &y reason

only of such &reach of warranty entitled to re(ect the goods' &ut hemay-

a/ Set u against the seller the Brach of warranty in diminution ore7tinction of the rice' or &/ Sue the seller for damages for &reach of warranty.

/ $he fact that a &uyer has set u a &reach of warranty indiminution or e7tinction of the rice does not revent him from suingfor the same &reach of warranty if he has suffered further damage.*E$+DIA I./ .4 C./ *AC 'E4.*E D+E DA E>here either arty to a contract of sale re udiates the contract&efore the date of delivery, the other may either treat the contracts assu&sisting and wait till the date of delivery, or he may treat thecontract as rescinded and use for damages for the &reach.

'*EAC5 4 C / *AC DE7I@E* S$ECI4IC *


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EAC5 .4 C./ AC . DE7I@E S$ECI4IC .ASCE* AI/ED G..DS

I/ E*ES ' !A .4 DA6AGES A/D S$ECIA7 DA6AGES1/ ?othing in this Act shall affect the right of the seller or the &uyer to

recover interest or s ecial damages in any case where&y law interestor s ecial damages may &e recovera&le, or to recover the money

aid where the consideration for the ayment of it has failed./ "n the a&sence of a contract to the contrary, the !ourt may award

interest at such rate as it thin fit on the amount of the rice@a/ $o the seller in a suit &y him for the amount of the rice.- from the

date of the tender of the goods or from the date on which the ricewas aya&le.

&/ $o the &uyer in a suit &y him for the refund of the rice in a caseof a &reach of the contract on the art of the seller- from the date onwhich the ayment was made.

A C I / SA7E


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A+C I./ SA7E

A+C I./ SA7E"n the case of sale &y auction@

1/ >here goods are ut u for sale in lots, each lot is rima facie deemed to&e the su&(ect of a se arate contract of sale.

/ $he sale is com lete when the auctioneer announces its com letion &ythe fall of the hammer or in other customary manner, and, until suchannouncement is made, any &idder may retract his &id.

3/ A right to &id may &e reserved e7 ressly &y or on &ehalf of the seller and,where such rights is e7 ressly so reserved, &ut not otherwise, the seller orany one erson on his &ehalf may, su&(ect to the rovisions hereinaftercontained, &id at the auction,

2/ >here the sale is not notified to &e su&(ect to a right to &id on &ehalf ofthe seller, it shall not &e lawful for the seller to &id himself or to em loy any

erson to &id at such sale, or for the auctioneer nowingly to ta e any &id

from the seller or any such erson, and any such erson, and any salecontravening this rule may &e treated as fraudulent &y the &uyer.6/ $he sale may &e notified to &e su&(ect to a reserved or u set rice.8/ "f the seller ma es use of retended &idding to raise the rice, the sale is

voida&le at the o tion of the &uyer.


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C./C7+SI./

. S+6 +$1/ ?othing in this Act or in any re eal affected there&y shall affect or

&e deemed to affect.a/ Any right, title, interest, o&ligations or lia&ility already ac%uired,

accrued or incurred &efore the commencement of this Act, or &/ Any legal roceedings or remedy in res ect of any such right, title,

interest, o&ligation or lia&ility, or c/ Anything done or suffered &efore the commencement of this Act,

or d/ Any enactment relating to the sale of goods which is not e7 ressly

re ealed &y this Act, or e/ Any rule of law not inconsistent with this Act.

/ $he rules of insolvency relating to contracts for the sale of goodsshall continue to a ly thereto, notwithstanding anything contained inthis Act.

3/ $he rovisions of this Act relating to contracts of sale do not a lyto any transaction in the form of a contract of sale which is intendedto o erate &y way of mortgage, ledge, charge or other security.


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%an< ou

lab_session xx sale of goods act.ppt

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