Sales Of Goods Act Lecture Notes, Lecture notes of Sales Management

Download Sales Of Goods Act Lecture Notes and more Lecture notes Sales Management in PDF only on Docsity! PRESENTATION BY: ABHA PILLAI ANJALI SINGH KALYANI PATEL INDRANI DUTTA ANNPURNA VERMA SALES OF GOODS ACT (1930) TOPICS COVERED……….  Formation of contract of sales and its element Difference between sale and Agreement to sell Classification of goods Conditions and warranties Rule of Caveat Emptor Unpaid seller Auction sale DEFINITION……….. Sec 4(1) of the Indian Sale of Goods Act, 1930 defines the contract of the sale of goods in the following manner: “ A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price”. MEANING….. The term “Contract of sale of goods’ is a generic term and it includes A. Sale and B. An agreement to sell where the seller transfers the ownership rights to the buyer immediately on making the contract, it is the contract of sale, but where the ownership rights are to pass on some future date upon the fulfillment of certain conditions then it is called an agreement to sell. Essentials of a contract of sale  Two parties- buyer and seller  Goods  Price  Transfer of general property  Essential elements of a valid contract  A contract of sale may be absolute or conditional. Sale Agreement to sell  In case of breach of a contract, seller can sue for the price of the goods .  The seller is only entitled to the ratable dividend of the price due if the buyer becomes insolvent.  The buyer is entitled to recover the specific property from the assignee if the seller becomes insolvent.  In case of breach of a contract, seller can sue only for damages not for the price.  The seller may refuse to sell the goods to the buyer w/o payments if the buyer becomes insolvent.  Buyer can claim only ratable dividend for the money paid. Difference………. Classification of goods TOPIC 3 Classification O f CONTINGENT Condition And Warranty  “A sTiPulATiOn in A COnTRACT Of sAlE with reference to goods which are subject matter there of, may be a COndiTiOn OR A wARRAnTy.”  These stipulations forms a part of the contract of sale and breach of it provides a remedy to the buyer against the seller. Condition [sec12(2)]  “ A COndiTiOn is A sTiPulATiOn EssEnTiAl TO the main purpose of the contract, the breach of which gives rise to a right to TREAT ThE COnTRACT As REPudiATEd.”  It goes to the root of the contract.  Its non fulfillment upsets the very basis of the contract. Condition [sec12(2)] Example :- [Behn v. Burness,1863]  By charter party( a contract by which a ship is hired for the carriage of goods), it was agreed that ship m of 420 tons “now in port of Amsterdam” should proceed direct to new port to load a cargo. In fact at the time of the contract the ship was not in the port of Amsterdam and when the ship reached Newport, the charterer refused to load. Held, the words “now in the port of Amsterdam” amounted to a condition, the breach of which entitled the charterer to repudiate the contract. TYPES…….  Express Conditions : Expressly provided in the contract Implied conditions & warranty(sec 14 to 17) : Which the law implies in a contract of sale Implied conditions :  Conditions as to title [Sec.14(a)] [Rowland v. Divall,(1923)]  Sale by description [Sec.15] [Bowes v.shand,(1877)]  Condition as to quality or fitness.[Sec.16(1)]  Conditions as to Merchantability [Sec.16(2)] [R.S.Thakur v. H.G.E. corp., A.I.R.(1971)]  Conditions implied by custom[Sec.16(3)].  Sale by Sample (Sec.17)  Condition as to wholesomeness. Implied Warranties : Warranty of Quiet possession-Sec.14(6) Warranty against encumbrances- Sec.14(c) Warranty to disclose dangerous natures of goods. Warranty as to quality or fitness by usage of trade – Sec.16(4). Rule of Caveat Emptor Topic 5 CAVEAT EMPTOR Let the ‘Buyer Beware’ The maxim Caveat Emptor does not apply & the contract will be subject to the implied conditions under the following circumstances : 1. Sale under fitness for buyers purpose 2. Sale under merchantable quality 3. Sale under usage of trade 4. Consent by Fraud Exceptions…… Fitness for buyer’s purpose. Sale under a patent or trade name. Merchantable quality Usage of trade Consent by fraud Unpaid seller - Rights 1) Right against goods:  Where the property in the goods has passed  Lien on goods  A right of stoppage-in-transit  A right of Re-sale  Where the property in the goods has not passed  Withholding delivery  Stoppage in transit 2) Right against the buyer:  Suit for price  Suit for damages  Repudiation o contract  Suit for interest Unpaid seller - Rights 3) Right to resale  Where the goods are perishable  Where unpaid seller gives notice of his intention to resale the goods  Where the seller expressly reserves his right of resale. Auction sale (sec 24(a)) Topic 7 4. where the sale is not notified to be subject to a right to bid on behalf of the seller, it shall not be lawful for the seller to bid himself or to employ any person to bid at such sale, or for the auctioneer knowingly to take any bid from the seller or any such person, and any such person,and any sale contravening this rule may be treated as fraudulent by the buyer. 5. the sale may be notified to be subject to a reserved or upset price. 6. if the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the buyer. Auction sale - Rules Conclusion