RAGHAV JHA (8010969972)

BY….RAGHAV JHA (M.B.A / M.COM)

SALE OF GOODS ACT, 1930PART -1

DEFINATION,FORMATION, SUBJECT-MATER, PRICE

RAGHAV JHA (8010969972)

INTRODUCTION

The law relating to the sale of good act was originally contained in chapter VII of “Indian contract act 1872” (section 76 to 123).

The “Indian contract act 1872 was replaced for the provisions contained for the sale of good and enacted the “sale of good act 1930”.

RAGHAV JHA (8010969972)

INTRODUCTION

The “sale of good act, 1930” came in to force on 1st July,1939.

Contain special provision on The right and duties of buyer and seller Condition of a valid sale in the eye of law Express and implied conditions and warranties

under a contract of sale.

RAGHAV JHA (8010969972)

“THE SALE OF GOODS ACT, 1930”

extends to whole of India excepts Jammu and Kashmir”

RAGHAV JHA (8010969972)

DEFINATIONS (SEC. 2)

BUYERS (SEC. 2(1)) “Buyer” means a person who buys or agrees to buy

goods. GOODS (SEC.2{7})

“goods” includes all chattels personal, other than things in action

and money and the term includes emblements, industrial growing

crops, and things attached to or forming part of the land which are

agreed to be severed before sale or under the contract of sale;

RAGHAV JHA (8010969972)

DEFINATIONS (SEC. 2)

DELEVERY Delivery means voluntary transfer of possession

from one person to another. SELLER

Seller means a person who sell or agree to sell the goods.

RAGHAV JHA (8010969972)

CONTRACT OF SALE OF GOODS

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

money consideration called “the price”; There may be a contract of sale between one part

owner and another.

RAGHAV JHA (8010969972)

ESSENTIAL OF A VALID CONTRACT OF SALE

1 •TWO PARTIES•GOODS

2 •PRICE•TRANSFER OF GENERAL PROPERTIES

3 •ESSENTIAL ELEMENTS OF VALID CONTRACT

RAGHAV JHA (8010969972)

ESSENTIAL OF A VALID CONTRACT OF SALE

TWO PARTIES There must be two distinctive parties i.e. a seller

and a buyer.

GOODS Goods means every kind of moveable properties

other then actionable claim and money and includes stock and shares, growing crops, grass and things attached to or forming part of land which are agreed to be severed before sale or under the contract of sale.

RAGHAV JHA (8010969972)

ESSENTIAL OF A VALID CONTRACT OF SALE

PRICE Money consideration for a contract of sales is called

price. There must be consideration paid in form of money .here old and rare coins are not consider as money.

TRANSFER OF GENERAL PROPERTY “property” means OWNERSHIP. To constitute of contract of sale the seller must either

transfer or agree to transfer the property(ownership) in goods to buyer.

ESSENTIAL ELEMENTS OF VALID CONTRACT The party to contract must be competent to contract The consent of parties must be free The object of contract must not be unlawful.

RAGHAV JHA (8010969972)

SUBJECT-MATER OF CONTRACT

The subject matter under the “sale of goods act. 1930” can be only goods.

The goods which form the subject matter of contract may be either:-

1. EXISTING GOODS2. FUTURE GOODS3. CONTIGENT GOODS

EXISTING GOODS (SEC. 06)The goods which are physically in existence and which are

in seller ownership and/or position, at the time of entering the contract of sale called existing goods.

RAGHAV JHA (8010969972)

EXISTING GOODS (SEC. 06)

Existing goods may be:- SPECIFIC GOODS (SEC 2{14})

Goods identified and agreed upon at the time of contract of sale called specific goods.

For example Mr. Raghav agree to sell a T.V bearing a distinct serial number.

ASCERTAINED GOODS Goods are said to be ascertained when out of a mass of

unascertained goods, the quantity extracted for is identified and set aside for a contract.

UNASCERTAINED GOODS The goods which are not separately identified or

ascertained at the time of making contract called unascertained goods.

RAGHAV JHA (8010969972)

FUTURE GOODS….(sec 2{6})

Goods to me manufactured, produced or acquired by the after the making contract of sales, called future goods.

There can be only agreement to sale for future goods because one can not sell which he does not posses.

CONTINGENT GOODS (sec 6{2})

These are the goods actuation of which by the seller depend upon a contingency which may or may not happen.

RAGHAV JHA (8010969972)

PRICE…..

The price in a contract of sale means the money consideration for a sale of good.

Money means of legal tender or money in circulation. Old and rare coins are not come under the scope of

definition.

Price must be either certain and definite of determined. It must be expressed in money It is not essential that price should be fixed at the time of

sale.

RAGHAV JHA (8010969972)

ASCERTAINMENT OF PRICE (SEC. 9)

The price may be fixed in following way

BY THE CONTRACTOR, OR

BY THE VALUER, OR

It may be determined by the course of dealing between the parties.