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II - Sale of Goods Act

The document summarizes key concepts from the Sale of Goods Act 1930 in India such as: 1) It distinguishes between movable and immovable properties, and defines goods as any kind of movable property excluding actionable claims and money. 2) The purpose of the Sale of Goods Act is to govern contracts for the sale of movable properties. It defines a contract of sale as one where the seller transfers ownership of goods to the buyer for a price or consideration. 3) The document outlines differences between a sale where ownership transfers immediately, and an agreement to sell where ownership is transferred later. It also discusses when risk and loss transfers in each case.

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29 views20 pages

II - Sale of Goods Act

The document summarizes key concepts from the Sale of Goods Act 1930 in India such as: 1) It distinguishes between movable and immovable properties, and defines goods as any kind of movable property excluding actionable claims and money. 2) The purpose of the Sale of Goods Act is to govern contracts for the sale of movable properties. It defines a contract of sale as one where the seller transfers ownership of goods to the buyer for a price or consideration. 3) The document outlines differences between a sale where ownership transfers immediately, and an agreement to sell where ownership is transferred later. It also discusses when risk and loss transfers in each case.

Uploaded by

sauravpatil24
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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The Sale of Goods Act, 1930

• Tangible / Intangible

• Properties/Assets - immovable and movable


properties.

• Immovable properties means land, buildings


and include things attached to the earth or
permanently fastened to anything attached to
the earth.

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• Movable properties – Goods:
means every kind of movable property including
actionable claims and money, growing crops, grass
and things attached to or forming part of the land
which are agreed o be severed before sale or under
the contract of sale.

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Purpose of Sale Goods Act,1930

• Sale of Goods Act deals with all movable


properties except actionable claims and
money.

3
• What is Contract of Sale of Goods.
• Three elements
i)There must be a seller, who transfers
property or agrees to transfer property in the
goods
ii) to the Buyer/Purchaser
iii)for a price or consideration of monetary
value .

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• Ownership of Property

5
• Sale vs. Agreement to Sell
Sale Agreement to Sell
Property in the goods Ownership/ property
passes to the Buyer, so does not pass to the
that he becomes the buyer at the time of the
owner Contract, but it passes
only when it becomes
sale by expiry of
certain time or the
fulfillment of some
conditions.
Executed Contract Executory Contract

6
• Sale vs. Agreement to Sell Contd…….
Risk/ loss falls on the Risk/ loss falls/ lies with
buyer though goods may the seller.
be with the seller

In case of breach by seller, In case of breach by seller,


buyer can claim damages buyer can claim only
plus other remedies. damages.

In case of breach by buyer, In case of breach by buyer,


seller can sue for price. seller can claim only
damages.

7
Alternative Methods
• Sales vs. Contract for labour and work

• Sale vs. Hire Purchase Agreement

• Hire Purchase Agreement


vs.
Sale by Installment

• Barter (Exchange) vs. Sale/ Gift/ Bailment

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Goods
• Goods may be (a) Existing or (b) Future

• Existing goods may be :


(i) Specific goods
(ii) ascertained or unascertained

• Property passes only when goods are


ascertained.
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Goods Contd……
• Four requirements for passing of property:
(i) the goods correspond with the description
in the contract (sale by description);
correspond to sample (sale by sample).
(ii) they are put in a deliverable state.
(iii)unconditionally appropriated to the
contract.
(iv)both parties consent to the appropriation-
implied or express.

10
• Reservation of right of disposal – until certain
condition is fulfilled- no transfer of property,
though goods delivered to the carrier, until the
condition is satisfied.

• Passing of Risk : Risk generally passes with


property or ownership, subject to the
agreement to the contrary.

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Document of Title to Goods

• What is Document of Title to Goods.

12
Conditions & Warranties

• Conditions and Warranties.

• A stipulation may be a condition or a warranty.

• Three kinds: (i) Condition precedent


(ii) Condition concurrent
(iii)Condition subsequent

13
Conditions & Warranties Contd…..

• Warranty : is a stipulation in the Contract of


Sale which is collateral to the main purpose of
the contract, the breach of which will give rise
to the other, an action for damages but not
right to reject the goods and treat the contract
repudiated.

14
IMPLIED CONDITIONS AND
WARRANTIES

• Caveat Emptor.

• Merchantable Quality.

• Merchantable Title.

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RIGHTS OF UNPAID SELLER
• An unpaid seller's right against the buyer
personally are:
- A suit for price.

- A suit for damages.

- Stoppage of goods in transit.

- Exercise Lien on the Goods.

16
RIGHTS OF UNPAID SELLER Contd…
• Four Conditions to be fulfilled:
i. The Seller is unpaid and parted possession
ii. The Buyer has become insolvent or deemed
as insolvent.
iii. Goods are in the course of transit.
iv. Property passed to buyer.

17
RIGHTS OF UNPAID SELLER Contd…

• Modes of Stoppage
i. Taking actual possession or
ii. Giving notice to the carrier in whose
possession goods are lying.

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HIRE PURCHASE

• Hirer has option to purchase by payment of last


rent.
• Property to pass only upon payment of last rent.

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SALE BY INSTALLMENTS

• Ownership.

• Consequence of Default of any Installment.

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