JAIN COLLEGE

Presentation
on
SALE OF GOODS
ACT, 1930
 INTRODUCTION
Came into force in the year July 1, 1930
Governs the contract relating to the sale of goods
Applicable to the whole India except the state of
Jammu & Kashmir

Consists of same peculiar such as :

Transfer of ownership of the goods.
Duties of the buyer and seller.
Remedies for Breach of Contract.
Conditions and warranty implied under a contract
for sale of goods.
WHAT IS SALE OF GOODS ACT,
1930?
Under Section 4(1), A contract of sale of goods is
a contract whereby the seller transfers 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.

Under Section 4(3), A contract may be

absolute or conditional.
ESSENTIALS OF CONTRACT OF
SALE:
All the essentials of a valid contract is applicable
here in this contract:

Between 2 parties

To transfer or agree to transfer the property.

In goods.

For a price; i.e. the consideration is money.

 TRANSFER OF PROPERTY
Transfer of property means transfer of
ownership. Only transfer of possession
cannot be considered as a sale.

Section 2(11) says, Property means

a general property in goods and not
merely a special property.

General property means all ownership

rights and special property means limited
rights.
 GOODS

According to Section 2(7), Goods means every

kind of movable property other than actionable
claims and money and includes stocks and
shares, growing crops , grass and other things
attached to or forming part of the land which
are agreed to be served before sale or under
contract of sale.

Money is not considered

as goods.
CLASSIFICATION OF GOODS:
 CLASSIFICATION OF GOODS:
EXISTING GOODS:

At the time of sales if the goods are physically in existence

and are in possession of the seller the goods are called
Existing Goods. Existing goods can be classified into specific
or unascertained.

Specific Goods:
Goods identified and agreed upon at the time of the making
of the contract of sale are called specificgoods[Sec.
2(14)].

Unascertained goods:
The goods, which are not separatelyidentified or
ascertained at the time of the making of thecontract, are
known as unascertained goods.
 FUTURE GOODS:

Future goods are goods to be manufactured or

produced or yet to be acquired by seller. Goods
which do not exist with the seller at the time of
sale. The contract thus is an agreement of sell.

CONTINGENT GOODS:
A type of future goods, the acquisition of
which depends upon a contingency which may or
may not happen.

 SALE AND AGREEMENT TO

SELL
SALE:
Property in the goods is transferred form the
seller to the buyer.

AGREEMENT TO SALE:
Transfer of the property in the goods is to be
taken place at some future date or after fulfilment
of some condition.
 DIFFERENCE BETWEEN SALE
AND AGREEMNT TO SELL
SALE AGREEMENT TO
SELL
1.Ownership is with 1. Ownership is with the
the buyer. seller.
2.Executed contract. 2. Executory contract.
3.Sue for price in 3. Sue for damages
case of breach. only, in case of
4.If goods lost by breach.
accident, then the 4. Goods lost by
loss falls on the accident, then the
buyer. loss falls on the
seller.
 DIFFERENCE BETWEEN SALE AND HIRE
PURCHASE
SALE
1. Property in the goods is
transferred to the buyer
immediately at the time of
contract
1. The position of the buyer is
that of the owner of the
goods
1. The buyer cannot
terminate the contract and
is bound to pay the price of
the goods.
HIRE
PURCHASE
The property in the goods passes
to the hirer upon payment of the
last installment.
The position of the hirer is that of
a bailee till he pays the last
installment.
The hirer may, if he so likes,
terminate the contract by
returning the goods to its owner
without any liability to pay the
remaining installments.
4. The seller takes the The owner takes no
risk of any loss such risk, for if the
resulting from the hirer fails to pay an
insolvency of the installment, the owner
buyer. has the right to take
back the goods.
5. The buyer can pass The hirer cannot pass
a goods title to a any title even to a
bonafide purchaser bonafide purchaser.
from him.
6. Sales tax is levied Sales tax is not leviable
at the time of the until it eventually ripens
contract into a sale
 SALE AND CONTRACT OF
WORK
The Sale of Goods Act applies to
contract of sale and not to contract for
work.
A contract of sale
contemplates the delivery of goods
whereas a contract for work involves
exercise of skill and labour by one
party in respect of materials supplied
by another.
 TYPES OF DELIVERY
ACTUAL DELIVERY:
Where the goods handed over by the seller
to the buyer or his duly authorised agent,
the delivery is said to be Actual Delivery.

SYMBOLIC DELIVERY:
Where the goods are ponderous or bulky
and incapable of actual delivery , then it is
said to be Symbolic Delivery.
 CONSTRUCTIVE DELIVERY:

Where a third person (e.g., a bailee) who is

in possession of the goods of the seller at
the time of the sale, acknowledges to the
buyer that he holds the goods on his behalf,
then there the Constructive Delivery takes
place.
 MODE OF DELIVERY
Delivery should have the affect of putting
the goods in the possession of the buyer or
his duly authorised agent is termed as
Mode of Delivery.

TIME OF DELIVERY
When the time of sending the goods has
not been fixed by the parties, then the
seller must send them within a reasonable
time is termed as Time of Delivery.
 INSOLVENCY OF SELLER
If the seller is declared insolvent before the
delivery of goods, the buyer can claim the goods
from the official receiver of the seller because he
(the buyer) is the legal owner of the goods.

INSOLVENCY OF BUYER
If the buyer declared insolvent before making the
payment for the goods the seller has the right to
refuse for the delivery of goods.
 RIGHTS OF UNPAID SELLER
RIGHTS OF UNPAID SELLER AGAINST THE
GOODS:

RIGHT OF LIEN:
The seller has a right of lien on the goods for the price
while he/she is in possession, until the payment or
tender of the price of such goods.

RIGHT OF STOPPAGE IN TRANSIT:

When the unpaid seller has parted with the goods to a
carrier and the buyer has become insolvent, he can
exercise the right of asking the carrier to return the
goods back.
 RIGHT OF RE-SALE:
The unpaid seller can exercise the right to re-sell
the goods when the goods are of a perishable
nature.

RIGHTS OF UNPAID SELLER AGAINST THE

BUYER:

SUIT FOR PRICE:

Where property has passed to the buyer and he
wrongfully neglects or refuses to pay for the goods,
then the seller may sue him for the price of the
goods.
 SUIT FOR DAMAGES FOR NON-
ACCEPTANCE:
Where the buyer wrongfully neglects or refuses to
accept and pay for the goods , then the seller may
sue him for damages for non-acceptance.

REPUDIATION OF CONTRACT BEFORE

DUE DATE:
Where the buyer repudiates the contract before
the date of delivery, then the seller may treat the
contract as rescinded and sue damages for the
breach.
 SUIT FOR INTEREST:

Where there is specific agreement

between the seller and the buyer as to
interest on the price of the goods from
the date on which payment becomes
due, the seller may recover interest from
the buyer.
CONDITIONS INCLUDED BY LAW INTO A CONTRACT OF SALE OF
GOODS.

Following are the conditions which are included

by the law into a contract of sale of goods:-
RIGHT TO SELL:
This right is considered as an implied condition in
every sale of contract is presumed that he/she can sell
the goods and he can enter in the sale agreement.

SALE BY DESCRIPTION:
In this case, the implied condition is that goods
should correspond with the description. A buyer can
reject the goods, if the goods are not according to
the description.
 SALE BY SAMPLE:

In this case, goods must be supplied according

to the sample agreed upon the conditions, such
as :-

The buyer may be able to compare the sample

with the bulk.

The goods should be free from any defect.

The bulk should match with the quality of the

sample.
 SALE BY SAMPLE AND DESCRIPTION:

In this case, goods supplied must be

correspond with sample and description
both. So, there is implied condition in it that
if the bulk does not match with even one
product , then the buyer may reject the
goods.


PRESENTED BY:
MUNEESH
NAVEENKUMARA K
POORNA CHANDRA BS
PRAKYATH SRIDHAR
PRIYANKA NAYAK
RAHUL KUMAR SINGH
PRANAV
RAGHAVENDRA