sales of goods Flashcards
types of goods
section 6, section 2 future and contingent goods, and
existing goods= 1. specific like tv car
2. Ascertained like you choose a quantity out of bulk like 20 carrots
3. unascertained like goods not identified like goods in stock
price of goods
section 9
* It may be fixed by the contract or
* It may be left to be fixed in an agreed manner
* It may be determined by the course of dealing between the parties.
if not any then buyer has to give seller a reasonable price
goods perishing
Goods Perishing Before Making of Contract (Section 7)
Where there is a contract for the sale of specific goods, the contract is void if the goods without the knowledge of the seller have, at the time when the contract was made, perished
Goods Perishing Before Sale But After Agreement to Sell (Section 8)
if no fault of seller or buyer- then agreement is avoided
Principle of Nemo Dat Quad Non Habet and Exception
- Transfer Of Title By Estoppel (Sec 27 )
- Sale By A Mercantile Agent (Section 27)
- Sale By Joint Owner (Section 28)
- Sale By A Person In Possession Under A Voidable Contract- (Section 29)
**5. Sale By The Seller In Possession (Section 30) (1) - Sale By The Buyer In Possession – Sec 30(2)
- Resale By An Unpaid Seller – Sec 54(3)
- Sale By Finder Of Goods- (Sec 169, Indian Contract Act)
- Sale By Pawnee on default- Sec 176 Of Indian Contract Act
**
(Greenwood v Bennett)
condition and warranties
sec12 12. Condition and warranty.—(1) A stipulation in a contract of sale with reference to goods which
are the subject thereof may be a condition or a warranty.
condition - v important main thing abt a contract if this is breached then repudiation of contract plus damages
warranty- less important if breached claim damages
lady tells seller to deliver a* red dress* in 2-3 weeks
implied conditions
- Implied Condition as to Title [Section 14(a)].
- Implied Condition in Sale by Description [Section 15].
- Implied Condition in Sale by Sample as well as Description [Section 15].
- Implied Condition as to Quality or Fitness [Section 16(1)].
- Implied Condition of Merchantable Quality [Section 16(2)].
- Implied Condition in a Sale by Sample [Section 17]
implied warranties
sec14(A)- Implied warranty to disclose the dangerous nature of the goods - disenfectants and chemicals
(Section 14(b)warranty of quiet (undisturbed) possession of goods
Section 14(c)Implied Warranty against Encumbrances
**Section 16(4) **Implied warranty as to quality/ fitness
section 13
When condition to be treated as warranty
1. . Acceptance of Goods by Buyer When condition to be treated as warranty- then breach will be treated as breach of warranty only
2. Voluntary Waiver of Condition
3. Conversion of Condition into Warranty
Kailash Sharma vs Patna Municipal Corporation
sec31 to 37
Sections 31 to 44 of The Sale of Goods Act, 1930, deal with the
rules regarding the Performance of Contract
(Section 31)Duty of Seller and Buyer
Seller’s main duty:-
→ Is to deliver the goods to the buyer
Buyer’s main duty:-
→ To accept the goods and pay the price to the seller as per the terms of the contract
The parties are free to provide any terms in their contract regarding time, place, delivery,
payment of goods and so on
(Section 32)Concurrency of Payment and Delivery
(Section 33)Delivery
(Section 34)Effect of part-delivery
(Section 35)Buyer to apply for delivery
section 36 place, time of delivery, 3rd party holidng goods, time for tender of delivery and expenses of delivery
section 37 delivery of wrong quanity - if less then buyer can reject or accept and pay at rate
if more then buyer can accept what was in contract or buy it all on rate or reject it
section 37-41
(Section 38) Installment deliveries
The buyer does not have to accept delivery in installments unless he has agreed to do so in the
contract.
section 39 Delivery to carrier
The delivery of goods to the carrier for transmission to the buyer is prima facie deemed to be
‘delivered to the buyer’ unless contrary terms exist in the contract
(Section 40) Deterioration during transit
If the goods are to be delivered at a distant place, then the liability of deterioration incidental
to the course of the transit lies with the buyer even though the seller agrees to deliver at his
own risk
(Section 41)Buyers right to examine the goods
If the buyer did not get a chance to examine the goods, then he is entitled to a reasonable
opportunity of examining them
section 42-44
(Section 42)Acceptance of Delivery of Goods
A buyer is deemed to have accepted the delivery of goods when: He informs the seller that he has accepted the goods; or Does something to the goods which is inconsistent with the ownership of the seller; orRetains the goods beyond a reasonable time, without informing the seller that he has rejected them.
(Section 43)Return of Rejected Goods
If a buyer, within his right, refuses to accept the delivery of goods, then he is not bound to
return the rejected goods to the seller. He needs to inform the seller of his refusal though. This
is true unless the parties agree to other terms in the contract.
(Section 44)Refusing Delivery of Goods
If the seller is willing to deliver the goods and requests the buyer to take delivery, but the buyer
fails to do so within a reasonable time after receiving the request, then he is liable to the seller
for any loss occasioned by his refusal to take delivery. He is also liable to pay a reasonable charge for the care and custody of goods.
Section 45-49
sec45 unpaid seller= whole price not paid, conditional payment of bill such as cheque used to pay but it dishouners, period of payment has passed and expired
Sec46 Unpaid seller’s rights- lien, stoppage of transit s51, right to resale s54
right of unpaid sellers lien
(Section 47)Seller’s Lien
(Section 48)Part-delivery
Further, Section 48 states that if an unpaid seller makes part-delivery of the goods, then he may
exercise his right of lien on the remainder
(Section 49) Termination of Lien
If he delivers the goods to a carrier or other bailee for transmission to the buyer without
reserving the right of disposal of the goods.
- When the buyer or his agent obtain possession of the goods lawfully.
- By waiver.
remedies for breach
sec55-61
sellers remedy against buyer -
sec55 suit for price if buyer neglects to pay- sue for price
sec56-damages for sellers non acceptance - wrongfully neclects to accept goods buyer may sue for damages
right OF buyer against seller
sec57- Damages for non-delivery.—Where the seller wrongfully neglects or refuses to deliver the
goods to the buyer, the buyer may sue the seller for damages for non-delivery
sec58 for specific perfomance
sec59Remedy for breach of warranty- sue for damages
REMEDIES FOR BOTH
sec60Suit for repudiation of contract before date or anticipatory breach
sec61 Interest by way of damages and special damages
