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Sale of Goods Act, 1930

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Sec 4(1) of the Sale of goods Act,1930, a contract of sale of GoodsAct is a contract whereby seller

transfer or agrees to transfer theproperty in goods to the buyer for aprice.

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Essential Elements of a Contract ofSale

Seller and Buyer

Goods

Transfer of general property Price

Essential elements of a valid

contract.

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Contract of Sale(Sec 4(3)

Sale Agreement to sell

Where the ownershipIn goods is transferred

Where the transfer ofOwnership in goods

Is to take place at a futureTime or subject to fulfilment of some

conditions

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Difference between Sale andAgreement to sell

Transfer of ownership Executed Contract or Executory Contract Conveyance of property

Transfer of Risk Rights of seller against the buyers breach. Rights of seller against the sellers breach. Effect of insolvency of seller having

possession of goods. Effect of insolvency of the buyer before

paying the price.

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Meaning of Goods

Goods means every kind of movableproperty other than actionable claimsand money, and includes the following:

1. Stock2. Growing crops, grass and things

attached to or forming part of the landwhich are agreed to be served beforesale or under the contract of sale

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Types of Goods

Goods

Existing Goods Future Goods Contingent Goods

1.Specific2.Ascertained

3.Unascertained

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Conditions and Warranties

Stipulation (Sec 12(1))A stipulation in a contract of sale of goods may be a conditionor warranty.

Condition(Sec 12(2))A condition is a stipuation

1. Where is essential to the main purpose of the contract, and2. The breach of which gives the aggrieved party a right to

terminate the contract.

Warranty(Sec 12(3))A warranty is a stipulation-

1. Which is collateral to the main purpose of the contract.2. The breach of which gives the aggrieved party a right to claim

damages but not a right to reject goods and to terminate thecontract.

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Condition and warranty -

Express condition and warranty

Implied condition and warranty

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Implied Conditions and warranties

Implied Conditions

1. Condition as to the title.

2. Condition in case of saleby description.

3. Condition in case of saleby sample.

4. Condition as to quality orfitness

5. Condition as tomerchantable quality

6. Condition as to thewholesomeness

7. Condition implied bycustoms.

Implied Warranties

1. Warranty as to quietpossession

2. Warranty of freedom fromencumbrances

3. Warranty as to quality orfitness for a particular fora particular purposeannexed by usage oftrade.

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Unpaid Seller(Sec 45(1)(2))

The seller of goods is deemed to bean unpaid seller-

1. When the whole of the price has notbeen paid or tendered.

2. When a bill of exchange or othernegotiable instrument has beenreceived as conditional payment ,and it has been dishonoured.

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Rights of unpaid seller

Against the goods

Against the buyer personally

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Right Against the Goods

Right against theGoods

Where the propertyIn goods has passed

To the buyer

Where the property in goodsHas not passed to the buyer

1. Right of lien2. Right of stoppage in Transit

3. Right of resale

1.Withholding delivery2.Lien

3. Stoppage in transit4.Resale

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Right against the buyer personally

Right against theBuyer personally

Suit for price Suit for damages Suit for interest

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