Documente Academic
Documente Profesional
Documente Cultură
Introduction
According to Section 4(1) a contract of sale of goods is
a contract whereby the seller transfer or agrees to transfer the property in goods to the buyer for a certain price
Explanation
A contract of sale can be absolute or conditional.
According to Section 4(3) when to right of
ownership of the goods is transferred from the seller to the buyer under a contract, the transaction is called a Sale. When the transfer of ownership is to be made at some future date , or is to made on the fulfillment of some condition , the contract is called Agreement to Sell.
Characteristics
Buyer & Seller:- The person who buys the goods or makes
an agreement to buy is called the buyer. & the person who sells goods or makes an agreement to sell is called the seller. Goods:- The subject-matter of the contract of the sale is essential that the goods, are moveable property other than actionable claims & money. Transfer of immovable property is not regulated by the sale of goods act. Price:- Goods are always sold for a price. Transfer of ownership:- The transfer of ownership can be at the time of making the contract or it can be at a future date.
Sale
The ownership of goods is transferred to the buyer at the time of contract
Agreement of sell
The ownership of goods is not transferred at the time of contract but later
Right of usage
It is only a contract b/w the buyer, it is done only when the good is transferred
Consequence of breach
Basic of difference
Types of goods
Sale
Occur in case of existing and specific goods only
Agreement of sell
Mostly in case of future and contingent goods
Right to re-sell
The original buyer who take the goods for consideration can sue the seller for damage
Risk of loss
on hire to another person called hirer or hire purchaser Rent is paid in installment and upon an agreement that at certain number of installments the property in goods will be passed to the hirer The hirer may return the goods at any time without any obligation to ay the balance rent It is not a contract of sale but only a bailment and the property in goods will remain with the owner during the continuance of the bailment
Example
B hires a piano from H on an agreement that B should
pay Rs. 2000 a month as rent. The stipulation is that if he regularly pays the rent for 36 months the piano becomes his property at the end of 36 months. Further it s provided that B can return the piano at any time and he need not pay any more. If it is agreed that 36 months rent must be paid and that he cannot return the piano, the agreement is a contract of sale.
The installment paid by the buyer is referred The installment paid are regarded as hire as the price of the goods. charge and not as payment towards the price of the goods till option to purchase the goods is exercised.
as barter deal. A sale implies reimbursement for goods sold in terms of money, so in this case barter deal is not a sale.
Sale Vs. Gift:- in case of gift, the transfer of ownership does not involve any kind of expense. Sale Vs. Bailment:- the buyer acquires the possession of goods from the seller in return for a consideration in money & becomes the lawful owner of the goods, but in bailment one person is the bailor who give the possession of goods to another for a specific objective, after fulfill of the objective the bailee is bound to return the good back to bailor
not to a contract for work and materials. A contract of sale contemplates the delivery of goods whereas a contract for work and material involves exercise of skill and labour by one party in respect of materials supplied by another, the delivery of goods being only subsidiary.
Example
A dentist agreed to supply a set of artificial teeth to a
patient. The material was wholly found by the dentist thus the contract was for the sale of goods. A contract involved the repair of a car and the supply of parts for the purpose. Held ,it was a contract for work and materials.
of movable property. It also includes stocks and shares, growing crops, part of land which is agreed to be served before sale. Trade marks, copyrights, patent rights, goodwill, electricity, water, gas are all goods. Actionable claims and money are not goods. Eg; claim to any debt, beneficial interest in movable property not in possession.
Types of goods
Existing goods Future goods
Specific goods Generic goods
GOODS
Contingent goods
owned by seller at the time of making the contract. Specific Goods:- these are those goods which are identified by both parties. Generic Goods:- existing goods that have not been specifically identified by the parties. Future goods:- goods that are not in possession of the seller at the time of the contract. Contingent goods:- these are same future goods, the acquisition of which by the seller is dependent on a contingency which may or may not happen
References
Business regulatory framework by Dr. Ashok Sharma
THANK YOU