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SALE OF GOODS ACTSSALE OF GOODS ACTS -- 19321932

Essentials of contract of saleEssentials of contract of sale

1.1. Two partiesTwo parties

2.2. GoodsGoods3.3. PricePrice

4.4. Transfer of general interestTransfer of general interest

5.5. Essential elements of a valid contractEssential elements of a valid contract

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Distinction between sale and agreement to saleDistinction between sale and agreement to sale

1.1. Transfer of propertyTransfer of property

2.2. Type of goodsType of goods3.3. Risk of lossRisk of loss

4.4. Consequences of breachConsequences of breach

5.5. Right to reRight to re--sellsell

6.6. General and particular propertyGeneral and particular property

7.7. Insolvency of buyerInsolvency of buyer

8.8. Insolvency of sellerInsolvency of seller

Distinction between sale and hireDistinction between sale and hire--purchasepurchaseagreement.agreement.

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Subject matter of contract of saleSubject matter of contract of sale

S.2(7) GoodsS.2(7) Goods-- means every kind of movablemeans every kind of movable

property other than actionable claims andproperty other than actionable claims andmoney; and includes stocks and shares,money; and includes stocks and shares,growing crops, grass and things attached to orgrowing crops, grass and things attached to orforming part of the land which are agreed to beforming part of the land which are agreed to besevered before sale or under the contract ofsevered before sale or under the contract ofsale.sale.

Trade marks, copyrights, patent rights, goodwill,Trade marks, copyrights, patent rights, goodwill,

electricity, water, gas are all goods.electricity, water, gas are all goods.

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Classification of goods.Classification of goods.

1.1. Existing goodsExisting goods

2.2. Specific goodsSpecific goods3.3. Ascertained goodsAscertained goods

4.4. Unascertained goodsUnascertained goods

5.5. Future goodsFuture goods

Conditions and WarrantiesConditions and Warranties

S.12(2) ConditionS.12(2) Condition A condition is a stipulationA condition is a stipulationessential to the main purpose of the contract,essential to the main purpose of the contract,the breach of which gives rise to a right tothe breach of which gives rise to a right to

treat the contract as repudiated.treat the contract as repudiated.

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S. 12(3) WarrantyS. 12(3) Warranty-- A warranty is a stipulationA warranty is a stipulationcollateral to the main purpose of the contract,collateral to the main purpose of the contract,

the breach of which gives rise to a claim forthe breach of which gives rise to a claim fordamages but not to a right to reject the goodsdamages but not to a right to reject the goodsand treat the contract as repudiated.and treat the contract as repudiated.

Distinction between condition and warrantyDistinction between condition and warranty

Implied conditions and warrantiesImplied conditions and warranties

Implied conditions and warranties is when theImplied conditions and warranties is when thelaw presumes their existence in the contractlaw presumes their existence in the contractautomatically though they have not been putautomatically though they have not been putinto it in express words.into it in express words.

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Implied conditionsImplied conditions

1.1. Condition as to titleCondition as to title

2.2. Condition as to descriptionCondition as to description3.3. Condition as to sampleCondition as to sample

4.4. Condition as to sample as well as descriptionCondition as to sample as well as description

5.5. Condition as to fitness or qualityCondition as to fitness or quality6.6. Condition as to merchantabilityCondition as to merchantability

7.7. Condition implied by customs and usageCondition implied by customs and usage

8.8. Condition as to wholesomenessCondition as to wholesomeness

Implied warrantiesImplied warranties

1.1. Warranty of quiet possessionWarranty of quiet possession

2.2. Warranty of freedom from encumbrancesWarranty of freedom from encumbrances

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Caveat EmptorCaveat Emptor

-- Means let the buyer bewareMeans let the buyer beware

-- It is the duty of the buyer to be careful whileIt is the duty of the buyer to be careful whilepurchasing goods of his requirement and, inpurchasing goods of his requirement and, inthe absence of any enquiry from the buyer,the absence of any enquiry from the buyer,

the seller is not bound to disclose everythe seller is not bound to disclose everydefect in goods of which he may bedefect in goods of which he may becognizant.cognizant.

Exceptions of the doctrine of caveat emptorExceptions of the doctrine of caveat emptor

1.1. Fitness for buyers purposeFitness for buyers purpose

2.2. Sale under a patent or trade nameSale under a patent or trade name

3.3.

Merchantable qualityMerchantable quality

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4. Custom or usage of trade4. Custom or usage of trade

5. Consent by fraud5. Consent by fraud

6. Sale by sample6. Sale by sample7. Misrepresentation7. Misrepresentation

Transfer of title by non owners (nemo dat nonTransfer of title by non owners (nemo dat nonhabet )habet )

-- No one can transfer a better title than heNo one can transfer a better title than he

himself hashimself has-- If the title of the seller is defective, the buyersIf the title of the seller is defective, the buyers

title will also be to the same defect.title will also be to the same defect.

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Exceptions to the general rule : sale by nonExceptions to the general rule : sale by non--ownersowners

1.1. Sale by mercantile agentSale by mercantile agent2.2. Title by estoppelTitle by estoppel

3.3. Sale by a joint ownerSale by a joint owner

4.4. Sale under a voidable contractSale under a voidable contract5.5. Sale by seller in possession after saleSale by seller in possession after sale

6.6. Sale by a buyer in possession before saleSale by a buyer in possession before sale

7.7. Resale by unpaid sellerResale by unpaid seller

8.8. Sale by a finder of goodsSale by a finder of goods

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PerformanceofcontractofsalePerformanceofcontractofsale

Delivery of goodsDelivery of goods

Mode of deliveryMode of delivery

1.1. Actual or physical deliveryActual or physical delivery

2.2. Symbolic deliverySymbolic delivery

3.3. Constructive deliveryConstructive delivery

Rights of a buyerRights of a buyer

1.1. Right to take delivery of goodsRight to take delivery of goods

2.2. Right to reject the goodsRight to reject the goods

3.3. Right not to accept installment deliveryRight not to accept installment delivery

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4. Right to examine the goods4. Right to examine the goods

5. Right not to return the rejected goods5. Right not to return the rejected goods

6. Right to the notice of insurance6. Right to the notice of insurance7. Right to sue the seller for non delivery of7. Right to sue the seller for non delivery of

goodsgoods

8. Suit for specific performance8. Suit for specific performanceDuties of buyerDuties of buyer

1.1. Duty to pay price and accept the goodsDuty to pay price and accept the goods

2.2. Duty to demand delivery at a reasonable hourDuty to demand delivery at a reasonable hour

3.3. Duty to apply for deliveryDuty to apply for delivery

4.4. Duty to pay damages for non acceptanceDuty to pay damages for non acceptance

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Rights of a sellerRights of a seller

1.1. Right to claim compensationRight to claim compensation

2.2. Right to sue for priceRight to sue for price

3.3. Right to treat the contract as subsistingRight to treat the contract as subsisting

4.4. Rights of an unpaid sellerRights of an unpaid seller

Duties of a sellerDuties of a seller

1.1. Duty to deliver the goodsDuty to deliver the goods2.2. Duty to deliver the goods at the agreed placeDuty to deliver the goods at the agreed place

3.3. Duty to supply the goods within specified timeDuty to supply the goods within specified time

4.4. Duty to send the goods at reasonable hourDuty to send the goods at reasonable hour

5.5. Duty to make contract with carrier on behalf of theDuty to make contract with carrier on behalf of thebuyerbuyer

6.6. To give reasonable opportunity to examine theTo give reasonable opportunity to examine thegoodsgoods

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B. Rights of an unpaid seller against the buyerB. Rights of an unpaid seller against the buyerpersonallypersonally

1. suit for price1. suit for price2. suit for damages for non2. suit for damages for non-- acceptanceacceptance

3. suit for repudiation of the contract before3. suit for repudiation of the contract before

due datedue date4. suit for price4. suit for price

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RemedialmeasuresRemedialmeasures

Unpaid seller S. 45Unpaid seller S. 45

The term unpaid seller may be defined as theThe term unpaid seller may be defined as theseller to whom the whole of the price has notseller to whom the whole of the price has notbeen paid or tendered or when a negotiablebeen paid or tendered or when a negotiable

instrument has been received towardsinstrument has been received towardspayment and that has been dishonored.payment and that has been dishonored.

Rights of an unpaid sellerRights of an unpaid seller

A.A. Rights against goodsRights against goods1. Right of lien1. Right of lien

2. Right to stoppage in transit2. Right to stoppage in transit

3. Right of resale3. Right of resale