WELCOME TO ONE & AL

SALE OF GOODS ACT

By
GURU DARSHAN
0816081
 GROUP MEMBERS
• GURU DARSHAN
• JOYSON
• KOUTUK
• CHANDRASHEKAR
• CHRISTOPHER
• DEEPAK
• DEEPTHI JAIN
• CLARISON
• FARAN
• ALLWYN DIAS
• JIM MATHEW
 Sale of Goods Act, 1930
The sale of goods is most common
of all commercial contracts.
Contracts for the sale of goods are
subjected to the general legal
principle to all contracts, such as
offer, and its acceptance, the
capacity of the parties, free and
real consent. The general provisions
of the Indian Contract Act continue
to apply to contracts of the sale of
 Contract of sale of goods
A contract of sale of goods is the contract
whereby the seller transfer or agrees to
transfer the property in goods to the buyer
for a price. There may be a contract of
sale between one part-owner and
another.[Sec. 4(1)].A contract of sale may
be absolute or conditional.[Sec.4(2)].
The term ‘contract of sale’ is a generic
term and includes both a sale and an
agreement to sell.
 Sale and agreement to sell
Where under a contract of sale the property
in the goods is transferred from the seller to
the buyer, the contract is called a sale, but
where the transfer of the property in the
goods is to take place at a future time or
subject to some condition thereafter to be
fulfilled, the contract is called an agreement
to sell.
An agreement to sell becomes a sale
when the time elapses or the conditions are
fulfilled subject to which the property in the
goods is to be transferred
Essentials of contract
of sale

BY
JOYSON SIDNY
D’SOUZA
Two parties:
There must be two distinct
parties’ buyer and the seller, to
effect a contract of a sale and
they must be competent to
contract. ‘buyer means a
person who buys or agree to
buy goods sec.2(1). Seller
means a person who sells or
agrees to sell goods Sec.2 (13).
These two terms are
complimentary.
Agreement:
Another important essential of a
sale is the existence of an
agreement brought about by
mutual consent. Sec5 (1) “a
contract of sale is made by an
offer to buy or sell goods for a
price and the acceptance of such
offer”.
Goods:
There must be some goods the
property in which is or is to be
transferred from the seller to the
buyer. The goods may be either
existing goods or future goods.
The goods which firm the subject
matter of the contract of sale must
be movable. Transfer of
immovable property is not
regulated by the sale of goods act.
Price:
The consideration for the contract
of sale, called price, must be
money. When goods are
exchanged for goods it’s not a sale
but barter. There is, however,
nothing to prevent the
consideration from being partly in
money and partly in goods.
Transfer of general
property: There must be a
transfer of general property as
distinguished from special
property in goods from the
seller to the buyer.

Essential elements of valid

contract: All the essential
elements of a valid contract
must be present in the
Meaning & Classification
of Goods

By
KOUT
 Meaning of ‘Goods’
According to Sec.2(7), ‘goods’ means
every kind of movable property other
than actionable claims and money;
and includes stocks and shares,
growing crops, grass and things
attached to or forming part of the
land which are agreed to be severed
before sale or under the contract of
sale.
 Classification of Goods:
1. Existing goods
a) Specific goods
b) Ascertained goods
c) Unascertained or generic
goods
2. Future goods
3. Contingent goods
Transfer of title

By
CHRISTOPER &
CHANDRASHEKAR
A property is the ‘right of ownership’.
Title is the source of right. A right is
vested in a person who holds a valid
title. The title must have been
obtained from the owner himself.
 Exception of Transfer of
Title
1.Sale by Non-owners :
• Section 27 provides that where goods are
sold by a person who is not the owner thereof
and who does not sell them under the
authority or with the consent of the owner,
the buyer acquires no better title to the
goods than that of seller unless the owner is
precluded from denying the seller’s authority
to sell.
• The rule is that no one can give which one
does not have.(nemo dat rule.)
2. Sell by a mercantile agent :

Where goods are sold by a mercantile

agent who is in the possession of the
goods or any document of title of the
goods, with the consent of the owner ,
and the sale is made in the ordinary
course of business of a mercantile
agent ,the buyer will get a good title if
he acts in good faith.
 Essentials of this Exception are
follows :
• The good must have been sold by a
mercantile agent.
• He must be in possession of the goods
or any document of the title to the goods
with the consent of the real owner.
• The sale should be in the ordinary
course of business.
• The buyer must act in good faith ,and
• The buyer should not have ,at the time
of contract ,notice that seller had not
authority to sell.
3.Sale Of Co-owner :
According to Section 28,a buyer who
purchase goods from co-owner will
get a valid title if all of the following
conditions are satisfied :
i)The co-owner must be in the sole
possession of goods with the consent of
other co-owners.

ii) The buyer should purchased the goods

for value and in good faith.

iii) The buyer should not have notice or

suspecion ,at the time of sale ,of any
defect in seller’s authority to sell
 4.Sale by the buyer in possession
under an agreement [sec 30 (2)]
Where a person having agreed to buy the
goods obtains, with the consent of the
seller, possession of goods or of
documents of title to goods, the delivery
or transfer by such person or by a
mercantile agent acting for such person of
the goods or documents by way of sale,
pledge, or other disposition will be valid
provided the person receiving the goods
act bona fide and without notices of
seller’s lien. A person who acquires goods
on hire purchase basis is covered under
section 30(2).
5.Sale by a seller in possession after sale[Sec 30(1)]

When a person is having sold goods, continues

or is in possession of the goods or of the
documents of title to the goods, any sale
pledge or other disposition thereof to another
person will give him a valid title over the goods
provided hi (i) acts in good faith, (ii) does not
have notice of the prior sale, and (iii) obtains
possession of goods or document of title to the
goods.
6.Sale by person in possession under
voidable contract:

When the seller of goods has obtained

possession there of under a contract
voidable under section 19 or section 19A
of the Indian Contract Act, 1872, but the
contract has not rescinded at the time of
the sale, the buyer acquires a good title
to the goods, provided he buys them in
good faith and without notice of the
seller’s defect of title
7.Sale By Unpaid Seller(sec54) :

A buyer of goods for value from an

unpaid seller, who is in possession of
goods in exercise of his right of lien or
stoppage in transit, shall acquire good
title even though resale may not be
justified under the circumstances.
There is no requirement of good faith
under this provision.
Conditions and Warranties

Presented By
Allwyn Dias
Deepti Jain
Jim Mathew
 Meaning of Conditions and
Warranties
• Condition: -
According to Section12(2), a
condition is a stipulation essential to the
main purpose of the contract ,the breach
of which gives a right to repudiate the
contract.
Warranty:-
According to Section12 (3),a warranty is a
stipulation collateral to the main purpose of
the contract, the breach of which gives a
right to a claim for damages but not a right
to reject goods and to treat the contract as
repudiated.
Difference between Condition and
Warranty
Condition
1.Condition is essential to the main
purpose of the contract.
Warranty
Warranty is only collateral to the main
purpose of the contract.

2.Breach of condition gives the right to Breach of warranty entitles the party
the party not at fault either to repudiate not at fault to claim damages only.
the contract or to claim damages or
both.
3.The condition may descend to the A warranty can never become a
level of warranty. condition

4.A Breach of condition may be treated A breach of warranty cannot be treated

as a breach of warranty. as a breach of condition.
 When can a breach of condition be
treated as a breach of warranty?
• Voluntary waiver of condition.
• Acceptance of goods by buyer.
 IMPLIED WARRANTIES

BY,
CLARIESON MARTIS
 IMPLIED WARRANTIES

 WARRANTY OF QUIET POSSESSION

 WARRANTY OF FREEDOM FROM ENCUMBRANCES

 WARRANTY AS TO QUALITY OR FITNESS USAGE OF TRADE

 WARANTY TO DISCLOSE DANGEROUS NATURE OF GOODS