Presentation on theme: "The Sale of Goods Act 1930. Sec 4(3) A contract of sale of goods is a contract, whereby the seller transfers or agrees to transfer the property in the."— Presentation transcript:
The Sale of Goods Act 1930
Sec 4(3) A contract of sale of goods is a contract, whereby the seller transfers or agrees to transfer the property in the goods to the buyer for a price
1.There must be at least 2 parties 2. Transfer or agreement to transfer the ownership of goods should take place 3. Subject matter: Goods 4. Consideration: Price 5. May be absolute or conditional 6. All other essentials of a valid contract must be present
SL.NO.SALE AGREEMENT TO SELL 1. Executed Contract Executory Contract 2. Seller can sue the buyer for price of goods. Seller can only sue for damages with reference to the price that was payable at a stated date. 3. In case of loss of goods, the loss will fall on the buyer, even if goods are in possession of seller. Risk is associated with ownership. Loss to be owned by the seller even if goods are in possession of the buyer. 4. In case buyer pays the price & the seller thereafter becomes an insolvent, the buyer can claim the goods from official receiver or assignee. Buyer cannot claim the goods, but only rateable dividend for the price paid 5. Buyer recovers in solvent without paying the price; the seller will have to deliver the goods to official assignee or receiver except where he has lien on the goods. Seller can refuse to deliver the goods to the official assignee or receiver.
Conditions and Warranties in sales contract Conditions and Warranties in sales contract Condition: A condition is a stipulation which is essential to the main purpose of the contract. It goes to the root of the contract. Warranty: A warranty is a stipulation which is collateral to the main purpose of the contract. It is not of such vital importance as a condition.
SL.NO.CONDITIONWARRANTY 1. A condition is a stipulation (in a contract) which is essential to the main purpose of the contract A warranty is a stipulation which is only collateral or subsidiary to the main purpose of the contract 2. A breach of condition gives the aggrieved party a right to sue for damages as well as the right to repudiate the contract A breach of warranty gives only the right to sue for damages. The contract cannot be repudiated 3. A breach of condition may be treated as a breach of warranty in certain circumstances A breach of warranty cannot be treated as a breach of condition
Contract of guarantee The person who gives the guarantee is called the ‘Surety’ The person for whom the guarantee is given is called as ‘principal debtor’ The person to whom the guarantee is given is called the as “creditor”
Unpaid seller Sec 45(1) 1. He must be unpaid and the price is due. 2. He must have an immediate right of action for the price 3. A bill of exchange or other negotiable instrument was received but the same has been dishonored.
Rights of an unpaid seller: Against the goods Rights of an unpaid seller: Against the goods 1. Right to lien (to retain the possession 2. Right of stoppage in transit 3. Right of resale : With or without notice Against the buyer personally: 1. Right to sue for the price 2. Right to sue for damages
Buyer’s Rights against Seller 1. Damages for Non Delivery (Sec.57) 2. Specific Performance (Sec.58) 3. Remedy for breach of Warranty (59)
Doctrine of ‘caveat emptor’ Exceptions: Where the seller makes a false representation and the buyer relies on that representation Seller actively conceals a defect in the goods, so that on a reasonable examination the same could not be discovered Buyer makes known to the seller, the purpose for which he is buying the goods and the seller should know to sell the goods of that description