SALE GOODS ACT, 1930

INTRODUCTION
The sale of goods act, 1930 governs the contracts relating to sales of goods. Before the present act, the law relating to sale of goods was contained in the Indian contract act,1872. the sale of goods act applies to the whole of India except the state of Jammu and Kashmir.

IMPORTANT TERMS.
CONTRACT OF SALE OF GOODS a contract of sale of goods is a contract whereby the seller transfers or agree to transfer the property in goods to the buyer for a price (section 4). GOODS BUYER SELLER DELIVERY

IMPORTANT TERMS
ACTUAL DELIVERY CONTRACTIVE DELIVER SYMBOLIC DELIVERY

CLASSIFICATION OF GOODS
GOODS

EXISTING GOODS

FUTURE GOODS

CONTINGEN T GOODS

ASCERTAIN OR SPECIFIC

UNASCERTAIN OR GENERIC

CONTRACT OF SALE OF GOODS

SALE AND AGREEMENT TO SALE

SALE AGREEMENT TO SALE
1) expected or executory contract
2) agreement plus conveyance or non-conveyance 3) actual transfer of property in goods 4) passing of risk in goods to buyer 5) remedy against seller 6) remedy against buyer 7) right in rem and personam 8) risk of destructing of goods 9) in case of insolvency of seller 10) in case of insolvency of buyer

SALE AND HIRE PURCHASE AGREEMENT

SALE HIRE PURCHASE AGREEMENT
1) Transfer of ownership 2) Option to return goods to buyer 3) Position of buyer and hire purchaser 4) Appropriation of installment 5) can seller get back goods ? 6) Governed by which act ?

EFFECT OF DESTRUCTION OF GOODS

Destruction before making of contract. Destruction after the agreement to sell but before sale.

CONDITION AND WARRANTY

Condition : section 12 (2) defines a condition as under a condition is a stipulation , essential to the main purpose of the contract , the breach of which gives rise to a right to treat the contract as repudiated

WARRANTY

CONDITIONS TO BE TREATED AS A WARRANTY ( SECTION 13)

In case of waiving the condition [section 13(1)] In case of buyer electing to treat a condition as a warranty [section 13(2)] In case of a contract not severable and acceptance of goods by buyer [section 13(2)]

CONDITIONS TO BE TREATED AS A WARRANTY ( SECTION 13) (cont)

In case of buyer electing to treat a condition as a warranty [section13(1)] In case of a contract for specific goods where the property has passed to buyer [section 13(2)]

 Set up against the seller the breach of warranty in diminution or extension of the price, OR Sue the seller for damages for breach of warranty.

REMEDY AVAILABLE TO BUYER FOR BREAD OF WARRANTY BY SELLER

IMPLIED CONDITIONS AND WARRANTIES IN CONTRACT OF SALE OF GOODS

IMPLIED WARRANTIES

DOCTRINE OF CAVEAT EMPTOR

CAVEAT EMPTOR ( rule )

CAVEAT EMPTOR ( rule )

Relies upon his own skill and judgment

Relies upon the skill and judgment of the seller

Buyer beware

Exception to the rule

Buyer should be liable

Seller shall be held liable

EXCEPTIONS TO CAVEAT EMPTOR

Fitness for buyers purpose [section 16(1)] Sale under trust name [section 16(1)] Merchantable quality [section 16 (2)] Usage of trade [section (3)] Consent by fraud.

TRANSFER OF PROPERTY OF GOODS.

TRANSFER OF PROPERTY OF GOODS. Specific or ascertain Sale on approval Generic or unascertained

Intended to pass Put into a deliverable state

To ascertain price

Deliverable state

Must be ascertained

Sale of unascertaine d goods

Delivery to carrier

TRANSFER OF TITLE TO GOODS

Latin phrase nemo dat quand non habet, which means no one can give or transfer who possess not or no one can give a better title than he himself posses or no one can give that which he has not got or no one can give , who does not himself possess, no one can pass better title than what he himself has

EXCEPTIONS TO THE GENERAL RULE (SECTIONS 27-30)

UNPAID SELLER

RIGHT OF AN UNPIAD SELLER

Right of an unpaid seller Against the goods Against the buyer personally

Goods has passed to buyer

Goods not passed to buyer

Right of lien Stoppage in transit

Right of resale

Suit for damages non acceptance Repudiation of contract before sale

Suit for interest

Suit for price

Buyers remedies against sellers (section 57-61)

Suit for damages for non-delivery of goods (section 58) Suit for specific performances (section 58) Suit for a breach of warranty (section 59) Suit for repudiation of contract, before due date (section 60) Suit for interest (section 61)

RIGHTS OF THE BUYER

To have delivery of goods as per contract. Reject the goods , when they are not of the description , quality or quantity as specified in contract. To sue the seller for damages for breach of warranty. To sue the seller for recovery of price , if already paid. To have a reasonable opportunity to examine the goods . To sue the seller for damages if the seller wrongfully neglects or refuses to deliver goods of buyer. To sue the seller for interest where there is a breach of contract on the part of seller and price has to be refunded.

DUTIES OF THE BUYER.

To accept the delivery of goods, when the seller is willing to make the delivery as per contract. To apply for delivery of goods. To pay the price in exchange for possession of the goods. To demand delivery of goods at an reasonable hour To pay damages for non-acceptance of goods. To accept delivery of goods in installments and pay for them in accordance of the contract. To inform the seller in case the buyer refuses to accept or rejects the goods.

RIGHTS OF THE SELLER

To assume that the buyer has accepted the goods when the buyer conveys his acceptance, does an act adopting the sale or retains the goods without giving a notice of rejection beyond the specific date or reasonable time. To reserve the right of disposal of goods until certain conditions are fulfilled. To deliver the goods only when applied for the buyer. To exercise lien and retain possession of the goods until payment. To resell the goods under certain circumstances. To make delivery of goods in installments ,when so agreed To sue the buyer for price when the property in the goods has passed to the buyer or when the price is payable on a certain day in term of the contract and the buyer fails to make the payment.

DUTIES OF THE SELLER.

To make arrangement of transfer of property in the goods to the buyer. To ascertain and appropriate the goods to the contract of the sale. To pass an absolute and effective title to the goods , to the buyer. To deliver the goods in accordance with the terms of the contract. To ensure that the goods supplied conform to the implied or express conditions and warranties. To put the goods in a deliverable state and to deliver the goods as and when applied for by the buyer. To bear all expenses of and incidental to making of delivery. To deliver the goods in agreed quantity. To deliver the goods in installments only when so desired by the buyer.