Sale of Goods Act, 1930

Sec 4(1) of the Sale of goods Act, 1930, a contract of sale of Goods Act is a contract whereby seller transfer or agrees to transfer the property in goods to the buyer for a price.

Essential Elements of a Contract of Sale

Seller and Buyer Goods Transfer of general property Price Essential elements of a valid contract.

Contract of Sale (Sec 4(3)

Sale

Agreement to sell

Where the ownership In goods is transferred

Where the transfer of Ownership in goods Is to take place at a future Time or subject to fulfilment of some conditions

Difference between Sale and Agreement to sell

Transfer of ownership Executed Contract or Executory Contract Conveyance of property Transfer of Risk Rights of seller against the buyers breach. Rights of seller against the sellers breach. Effect of insolvency of seller having possession of goods. Effect of insolvency of the buyer before paying the price.

Meaning of Goods

1.

2.

Goods means every kind of movable property other than actionable claims and money, and includes the following: Stock Growing crops, grass and things attached to or forming part of the land which are agreed to be served before sale or under the contract of sale

Types of Goods
Goods

Existing Goods

Future Goods

Contingent Goods

1.Specific 2.Ascertained 3.Unascertained

Conditions and Warranties

Stipulation (Sec 12(1)) A stipulation in a contract of sale of goods may be a condition or warranty. Condition(Sec 12(2)) A condition is a stipuation Where is essential to the main purpose of the contract, and The breach of which gives the aggrieved party a right to terminate the contract. Warranty(Sec 12(3)) A warranty is a stipulationWhich is collateral to the main purpose of the contract. The breach of which gives the aggrieved party a right to claim damages but not a right to reject goods and to terminate the contract.

1. 2.

1. 2.

Condition and warranty

Express condition and warranty Implied condition and warranty

Implied Conditions and warranties

1. 2.

3.

4.

5.

6.

7.

Implied Conditions Condition as to the title. Condition in case of sale by description. Condition in case of sale by sample. Condition as to quality or fitness Condition as to merchantable quality Condition as to the wholesomeness Condition implied by customs.

1.

2.

3.

Implied Warranties Warranty as to quiet possession Warranty of freedom from encumbrances Warranty as to quality or fitness for a particular for a particular purpose annexed by usage of trade.

Unpaid Seller(Sec 45(1)(2))

1.

2.

The seller of goods is deemed to be an unpaid sellerWhen the whole of the price has not been paid or tendered. When a bill of exchange or other negotiable instrument has been received as conditional payment , and it has been dishonoured.

Rights of unpaid seller

Against the goods Against the buyer personally

Right Against the Goods

Right against the Goods

Where the property In goods has passed To the buyer

Where the property in goods Has not passed to the buyer

1. Right of lien 2. Right of stoppage in Transit 3. Right of resale

1.Withholding delivery 2.Lien 3. Stoppage in transit 4.Resale

Right against the buyer personally

Right against the Buyer personally

Suit for price

Suit for damages

Suit for interest