presentation(sale of g.a2003)-in of03

8/7/2019 Presentation(sale of g.a2003)-in of03

1/25

SALE OF GOODS ACT

Presented by

Madhav Warwate 98Akanksha Kulthe 135Navjyot Mahajan 124

Tanvi Amberkar 125Milind Sonavane 99Kshitija Kadam 100

Kiran Dalvi 114


2/25

INTRODUCTION:

The sale of goods act of 1930 contains the basicprinciples as well as the legal framework of thetransactions of sale and purchase. Earlier thesale of goods act was a part of the Indiancontract act. A separate Act was framed in theyear 1930.


3/25

BAS IC CONCEPT S :

Sale:Sale: In a contract of sale the must important thing is that there is a transfer of property inGoods for a price.

H ire-purchase agreement: In case of hire purchase agreement the seller delivers the possession of thegoods to another person and he charges rent for the goods. After the payment of specificNumber of installments the ownership of the goods is passes on to purchaser.

Barter Exchange:Barter Exchange: In case of barter agreements there are exchanges of goods for goods.This transaction is not a sale but it is a barter transaction. In a sale there is an exchange of goodsFor price and the price is paid in money. In case of exchange of money it is a transaction of exchange andnot a sale .

Bailment:Bailment: In bailment only possession is transferred from bailor to bailee. Such transactions mayBe for the purpose of keeping the goods in safe custody or may be for furnishing security in loantransactions etc. Since the ownership of goods is not transferred in favour of the bailee, thisTransaction is not a sale and therefore the bailee has to follow the instructions given by the bailor indealing with the goods.

Goods:Goods: The concept of goods is very important as the Sale of Goods Act deals with Sale of goods . Asexplained in the beginning, goods includes only movable property and not immovable property. Thus saleof house property do not come under Sale of Goods Act.

Cont


4/25

TYPE S OF GOODS :

1. Existing goods1. Existing goods - - There are the goods which are actually in possession or in the ownership of the seller atthe time of sale. The existing goods can be specified and agreed upon at the time of Contract of sale. Ascertained goods are the goods which are become ascertained subsequent to theformation of law contract of sale. Unascertained goods are the goods which are not identical and agreedupon at the time of the contract of sale. They are defined only by description and may form a post of it.For example A machine may be sold out on the basis of its description.

2 .Fu tu re goods2 .Fu tu re goods Sometimes a seller does not possess goods at the time of contract but which will bemanufactured or produced or acquired by him after the making of contract of sale. Actually this cannot bea sle but only an agreement to sale because the goods are not inExistence at the time of contract of sale.

3.Contingent goods3.Contingent goods- - These goods which a seller may acquire in the future but the acquisition of goodsdepends upon a contingency.


5/25

P rice:P rice: The price in a contract of sale means the money consideration for a sale of goods.Price in a contract of sale may be fixed as per the contract itself or may be left to theparties as per the agreement. If there is no mention of the price in the agreement, thebuyer must pay a reasonable price to the seller. What is a reasonable price is a trickyquestion and it depends onThe situation of each case. It should be noted that it is not essential that price is fixed atthe time of sale. It must however be payable even if it is not fixed.

Agreement of sale:Agreement of sale: As discussed earlier in a transaction of sale, the ownership in thegoods is transferred from the seller to the buyer. But in some cases the ownership is tobe transferred at a future date or after fulfillment of certain condition. This type of contract called as an Agreement to sell . An agreement to sell is converted into a aslewhen the stipulated time lapses or when the condition mentioned in the agreementfulfilled.The following points will highlight the difference between a sale and an agreement tosell.

1. In a sale the transfer of ownership of goods take place at the future date or subject tocertain conditions.2 . In a sale, if the goods are destroyed, the loss falls on the buyer even though the goodsmay be in possession of the seller. In the agreement to sell, since the ownership has notbeen transferred as yet to the buyer, if goods are destroyed, the seller will have to bear

the loss. Even if the goods are in the possession of the buyer, this situation will notchange.


6/25

3.A sale can only be in the case of existing and ascertain goods. An agreement to sell isin case of future and contingent goods though it may be regarding unascertain goods.4. A sale gives a right to the buyer to enjoy the goods as against the entire world. Theonly reason here is that the ownership has been transferred in favour of the buyer, theseller can sue for the damages only and not for the price.5. If the buyer fails to pay the price of the goods, the seller can sue for the price in thecase of a sale. In an agreement to sell if there is a breach of contract by the buyer , theseller can sue for the demage only and not for the price.6. If a buyer becomes insolvent after the sale is complete but before the payment of price, the seller has to return the goods to the official Assignee or Receiver and can

claim only proportionate dividend . In case of an agreement to sell, if the buyer becomesinsolvent, the seller in possession need not part with the goods unless he is paid forthem.7. In a sale, if the seller becomes insolvent, the buyer can recover the goods from theOfficial Receiver or Assignee . In an agreement to sell , if the seller becomes insolventbefore he parts with the goods and if the buyer has paid the price, the buyer can claim a

proportionate dividend because the ownership has not been transferred to the buyer.8. In a case of a sale ,a seller can re-sell goods only in the event of the buyer not payingthe price and the goods lieing at the place to the seller. In a sale as the ownership of thegoods is with the buyer, the re-sell except in certain cases will not give good title to thesubsequent buyer. In an agreement to sell in case of resale , the buyer who takes thegoods without the knowledge of the previous transaction , gets a good title. The buyer

has only the right to sue the seller in this case.


7/25

CONDITIONA ND W A RR A NTIE S

CONDITION: As per section 12(2) of sales of goods acts. It isstipulation which is essential to main purpose of contract.Its non performance gives right to aggrieved party to treatcontract as brokenW A RR A NTIE S : As per section 12(3) a warranty stipulation whichis collateral to main purpose of contract the breach of which

gives the right to aggrieved party to claim damages against theother party but not to treat the contract as broken


8/25

TYPE S OF CONDITIONS

Express conditions

Implied Conditons


9/25

IMPLIED CONDITION IN CONTR A CT OF SA LE

Seller has a title to sell the goods. In such case of anagreement to sell the implied condition is that the selleracquire a good title to the goods at the time of actual sale.simple logic behind this implied condition is that personshould be the owner himself before he sells the goods toanother person.Some times sale is made by the description of goods ratherthan any sample or demonstration in such case condition isquality of goods supplied as per description of goodsBuyer should be satisfy himself about goods he purchased if after goods are found unsuitable for the purpose for whichthey have been brought the buyer cant hold seller responsiblefor this


10/25

IMPLIED W A RR A NTIE S

Buyer shall have the right enjoy quite possession of goods. If there is an interference in this right by seller orby any person the seller or by any person, the buyer can

sue the seller for damages.The Buy is entitled to another warranty that the goodsare free from any charge encumbrance in the favor of third person not declared to or known to buyer

In case of dangerous goods it is the responsibility of theseller to disclose the nature of goods the buyer. if suchdisclosure is not made and the buyer suffers from injury ,the seller wil be liable to pay the damages.


11/25

CONDITIONS TO B E TRE A TED AS

W A RR A NTY Breach of condition can be treated as breach of warranty - right of buyer to treat the contract asbroken is lost and the buyer is only entitled to claim

damages .1. Waiver of condition.2. compulsory treatment of breach of condition as breach

of warranty


12/25

W A IVER OF CONDITION

A buyer may voluntarily waive the conditions mentionedin the contract of sale.either he may waive the conditionsor he may elect to treat the breach of that it is accepted

by a reasonable person as fit for use.


13/25

COMPUL S ORY TRE A TMENT OF B RE A CH

OF CONDITIONAS B RE A CH OF W A RR A NTY

the buyer of the goods has accepted either fully or in pastthe goods,breach of any condition can be treated only asbreach of warranty.H owever the agreement to may provide otherwise i.e..maypermit repudiation of contract in spite of acceptance of goods by buyer


14/25

CA VE A T EMPTOR / B UYER B E A W A RE

It is the responsibility of the buyer whileselecting the goods.It is not the duty of the seller to point out thedefects in the goods sold out by him.In other if there defects in the goods, the buyercannot hold the seller responsible for notdisclosing the defects to the buyer.The reason is that the seller is under noobligation to disclose the defects in his owngoods


15/25

EXCEPTIONS TO CA VE A T EMPTOR

If a buyer relies on false representation made by seller, therule of caveat emptor will not be applicable and the sellerwill be liable for any defects in the goods.In case a seller conceals defects in the goods and the defects

are such that a reasonable inspection could not havediscovered, the caveat computer rule will not apply.If a buyer makes known to seller the purpose for which herequires goods and it is the business of seller to sell goods of that description implied condition)If the sale by description, there is a implied condition thatthe goods are of a merchantable quality. If they are not of the merchantable quality, the contract can be broken andthe rule of the caveat employ will not be applicable


16/25

PASS ING OF PROPERTY FROM S ELLER TOB UYER

Property in specific OR ascertained Goods.

Property in case of Unascertained Goods.


17/25

Passing of property in Goods sent on APPROVALOR on SALE OR RETURN .

Passing Risk [sec 26]


18/25

PERFORMA NCE OF THE CONTR A CT OF

SA LE It means as regards the seller, the delivery of the goods to the buyer.

Buyer s side-acceptance of delivery of thegoods and payment for them as per termsand conditions of saleSeller s side-giving delivery according to therules contained in Sales of Goods act


19/25

ME A NING OF DELIVERY

Voluntary transfer, of possession from one person toanother.It is not the transfer of ownership of goods.In contract of sale of goods, giving the delivery signifiesperformance of contract from seller side.Physical deliverySymbolic Delivery

Neither Physical nor Symbolic( Acknowledgement)


20/25

RULE S REGA RDING DELIVERY

Delivery is to be given by the seller only when applied by thebuyer. Its the duty of buyer to apply for goods.Place of Delivery-Whether the goods are to delivered atbuyer s place or seller s place. If no such contract exist, goodsare to delivered at place of time of sale

Time of delivery- In contract of sale, seller is bound to givedelivery within the specified time at the place where they areat the time of agreement of sell.If no time is mentioned, the delivery must be given withinthe reasonable time will depend upon the situation in each

case.Expenses of putting the goods in deliverable state as well asthe incidental expenses are to be borne by the seller unlessotherwise agreed.In case of wrong quantity of goods, the buyer can reject thegoods. But he accepts the same, he has to pay for them


21/25

The buyer is not bound to accept part delivery or delivery ininstallments unless agreed otherwise.Delivery of goods by the seller to the carrier for transmission tothe buyer for safe custody is prime importance to be a delivery of the goods to the buyer unless the right of disposal has beenretained by the seller.If the goods delivered to the buyer and buyer had not previouslyexamined them, he may not accept them unless he examines thesame and makes sure that they confirm to the terms of contract.if the provision is not applicable if the parties agree otherwise.When goods are delivered to the buyer under the sale or returnbasis and the buyer refuses the goods, the buyer is not bound to

return the goods to the seller.It is the duty of the buyer to informthe seller about the refusal,otherwise after a reasonable time, the

buyer will be deemed to have accepted the goods.


22/25

Sometimes the seller is willing to give the delivery of goodsto the buyer. Accordingly he request the buyer to take the

delivery but the buyer does not take the delivery of goodswithin the reasonable time from such request. In suchsituation the buyer is liable to seller for any loss caused by hisneglect of taking the delivery and also for any otherreasonable charges incurred by the seller for the protection

of goods.


23/25

R IGHTS OF ANUNPAID SELLER


24/25

UNPAID SELLER

Sec 45(1) of the Sale of Goods Act says that an unpaidseller is a person who had sold goods to the other personand,(i) The whole of the price has not been paid or tendered.(ii)A bill of exchange or other negotiable instrument has

been has been received as a conditional payment andthe condition on which it was received has not beenfulfilled by the person of dishonour of the instrumentor otherwise.


25/25

RIGH TS OF AN UNPAID SELLER

(A)Rights Of An Unpaid Seller Against The Goods:

1. Right of lien2. Right of stoppage in transist

3. Right of re-sale

(B) Rights Of An Unpaid Seller Against The Buyer Personally:

1. Suit for the price2. Suit for damages

presentation(sale of g.a2003)-in of03

Documents