sales of goods act,1930 by group 3

8/8/2019 Sales of Goods Act,1930 by Group 3

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Sale Of Goods Act, 1930A project by :

Aditi Varun Lav Likhi

Neha Kant Roma Marwah


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BEFORE1930, the rules governing thesale of goods were a part of the Indian

Contract Act-1872, wherein section 76 to 123incorporated the laws regarding the sale ofgoods. The constituent Assembly of India,

therefore, separated these laws from theIndian Contract in 1930, and incorporatedthem in a new act called SALE OF GOODSACT-

1930.

Introduction


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BUYER: Section 2(1) of the act defines a buyer as a

person who buys or agrees to buy goods.

SELLER: Section 2(13),a seller is a person who sellsor agrees to sell goods.

GOODS: all kinds of movable property other thanactionable claims and money, and include stock and

shares, growing crops ,grass and things attached toor forming part of the land which are agreed to besevered before sale or under the contract of sale.

Important definition

s


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According to Section 4(1),A contract of sale of

goods is a contract whereby the seller transfers oragrees to transfer the property in goods to the buyerfor a certain price.

It closely flows the English act on the subject.

What is Contract of sale?

Seller Goods Buyer


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Types ofGoods

ExistingGoods

FutureGoods

ContingentGoods


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Types Of Goods


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Movable goods:

Two distinct parties:

Essential elements of a valid contract:

Consideration should be a price and that tooin money terms;

There must be a transfer of general propertyas distinguished from special property ingoods, from seller to the buyer.

ESSENTIAL ELEMENTS


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Condition & WarrantyCondition

Condition (Sec 12(2)) Acondition is a stipulationwhich is essential to the mainpurpose of the contract. Itgoes to the root of thecontract. Its non fulfillment

upsets the very basis of thecontract.

Breach of condition maybetreated as a breach ofwarranty

Warranty

Warranty (Sec 12(3)) is astipulation which iscollateral to the mainpurpose of the contract. it isnot of such vital importance

as a condition is. Breach of warranty cant be

treated as breach ofcondition.


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MEANING: Buyers be-aware As to quality of goods As to the quantity of goods As to the necessary services provided by the goods As to justifiable price of the goods. As to the seller personally EXAMPLE:- Mr.X sent some pigs to the market to be sold

byauction. Mr.Y purchased all the pigs with all faults anderrors of description.Mr.X knew that his pigs weresuffering from some fever but he did not disclosethe same to Mr.Y.

Caveat Emptor


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Goods must be ascertained Specific goods in a deliverable state

Specific goods to be put in a deliverable state Specific goods in a deliverable state when the

seller has to do anything thereto in order toascertain price

Sale of unascertained goods and appropriation

Goods sent on approval or on sale or return Reservation of right of disposal Risk prima facie passes with the property

Transfer of Property


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Difference between Transfer of Property and

Possession

TRANSFER OFPROPERTYmeans transfer

of ownership Risk of loss also passes

with ownership to buyer

When the goods aredestroyed or damaged, only

the owner can sue The seller can sue for

price only if theownership of goods hasbeen transferred to thebuyer.

TRANSFER OF

POSSESSIONmeansproperty just passes

Risk of loss remains withthe seller

Possessor does not havethe right to sue

This is not in case oftransfer of possession


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Place of delivery

Time of delivery

Goods in the possession of a third person

Expenses of delivery

Delivery of wrong quantity

Installment deliveries

Delivery to carrier or wharfing

Risk where goods are delivered at a distant place

Buyers right of examining the goods

Acceptance

Buyer not bound to return rejected goods

Liability of buyer for neglecting or refusing delivery ofgoods

Rules as to Delivery of Goods


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A person who has sold goods to another person but as

not been paid for the goods, or has been paid

partially, is called an unpaid seller.

ACCORDING TO SECTION 45 OFTHESALE OF GOODSACT,AN UNPAID SELLERIS ONE:

1. Who has not been paid the price of the goods he hassupplied, or has been paid partially.2. Who has been given a negotiable instrument like a

bill of exchange that has been dishonored. It isimmaterial whether the seller is directly involved inthe transaction, or he is acting through his agent

WHO IS AN UNPAID

SELLER?


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AGAINSTTHE GOODS

When the property in the good has passed Right to stop in transit

Right to lien

Right to re-sell

When the property in the goods has not passed

Right to withhold delivery

Right to stop in transit

Rights of an Unpaid Seller


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Against the buyer personally

Right to sue for price

Right to sue for damages

Right to repudiate the contract

Right to sue for itnerest

Rights of an Unpaid Seller


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Buyers assemble and make offers on the spot. Person

offering to pay highest price gets the goods.

Implied warranties undertaken by an auctioneer He has the authority to sell He does not know of any defect in the title of his

principal

He undertakes to give possession of the goods againstthe price paid to him

He guarantees the quiet possession of the goods bythe purchaser

Auction Sale


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Suit for damages for Non-Delivery

Delivery Suit for Price

Suit for specific performance

Suit for Breach of Warranty

Suit for damages for repudiation of contract before duedate

Suit for Interest

Buyersremediesagainst

Seller for breach of contract


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sales of goods act,1930 by group 3

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