Sale of Goods Act 1930- Candida

8/11/2019 Sale of Goods Act 1930- Candida

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1

NAME : CANDIDA DSOUZA

COLLEGE : KC COLLEGE OF MANAGEMENT STUDIES

ROLL NO : 02

A Presentation On


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Definitions

Kinds Of Goods Delivery

Essentials of a contract of sale

Sale v/s Agreement to sell

Sale v/s Hire Purchase

Conditions & Warranty

Types Of Conditions And Warranty

Condition v/s Warranty

Implied Conditions

Implied Warranty Caveat Emptor

Transfer of Property

Transfer of Title

Unpaid Seller

Rights of an Unpaid Seller Suit for breach in contact

Case study on the terms andcondition of a cell phone.

Content


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BUYER

Buyer means a

person who

buys or agrees

to buy goods.

[sub-section(1)]

SELLERSeller is a person who

sells or agrees to sell

goods.[sub-section(13)].


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Existing goods:

Section 6(1) - These are the goods which are in existence andare physically present in the sellers possession.

Future goods :Section 2(6)- Goods which are to be manufactured or

produced or acquired by the seller after making contract ofsale.

Specific goods:Section 2(14)These are the goods identified and agreed

upon at the time the contract is made.

Goods:

Means every kind of movable property other than actionableclaims and money.

Kinds Of Goods


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2. Symbolic delivery :Delivery of goods in case of transit may be

made by handing over documents of title of

goods , like Bill of Lading or Railway

Receipt or Delivery Order.

Delivery

Delivery means voluntary transfer of possession by one person

to another. [sec 2(2)]

1. Actual delivery :

It is actual delivery when

the goods are physicallydelivered to the buyer.


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1. There must be at least 2 parties.

2. The subject matter of the contact must

necessarily be goods.

3. The price in money (not in kind) shouldbe paid or promised.

4. The transfer of property in goods from

seller to the buyer must take place.

5. A contract of sale must be absolute orconditional. [sec 4(2)]

6. All other essential elements of a valid

contract must be present in the contract

of sale.


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1.Transferof propertyThe property of goods passes from

the seller to the buyer immediately.

So the seller is no more owner of the

goods sold.

The transfer of property of the goods

is to take place at a future time or

subject to certain conditions to be

fulfilled.

2. Type of goods

A sale can only be in case of

existing and specific goods only.

An agreement to sell is mostly in case

of future and contingent goods.Although it may refer to uncertain

existing goods.

3. Risk of loss

In a sale if the goods are destroyed ,

the loss falls on the buyer eventhough the goods are in the

possession of the seller.

In an Agreement to Sell if the goods

are destroyed the loss falls on thesellereven though the goods are in

the possession of the buyer.

Sales Agreement To Sell


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4. Consequences of the breach

In a sale the buyer fails to pay the priceof goods (or) if there is a breach of

contract by the buyer the seller can

sue for the price even though the

goods are still in his possession.

If there is a breach of contract bythe buyer the seller can only sue

for the damages and not for the

price.

Sale is an executed contract.

5. Type of contract

Agreement to sell is an executorycontract.

Property transfers immediately.

6.Property transfer

Property is transferred after

sometime.

A sale creates jus-in-rem (right

against the whole world).

Agreement to sell createjus-in-

personam (right against an

individual)

7.Against the world/ individual

Sales Agreement To Sell


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Property in the goods is transferred

to the buyer immediately at the time

of contract. The position of the buyer is that of

the owner of the goods.

The buyer cannot terminate the

contract and is bound to pay the priceof the goods.

The seller takes the risk of any loss

resulting from the insolvency of the

buyer.

The buyer can pass a good title to a

bonafide purchaser from him.

Hire-purchase, the property in the

goods passes to the hirer upon

payment of the last installment. Hire purchase, the position of the

hirer is that of a bailee till he pays

the last installment.

Hire-purchase, the hirer may, if he so

likes, terminate the contract byreturning the goods to its owner

without any liability to pay the

remaining installments.

In the case of hire purchase, the

owner takes no such risk, for if thehirer fails to pay an installment, the

owner has the right to take back the

goods.

In a hire-purchase, the hirer cannot

pass any title even to a bonafidepurchaser.

Sales Hire Purchase


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CONDITION:

A condition is a basic and important part of the contract.

If one party breaches a condition then the other party may

1.End the contract.

2.Refuse to perform their part of the contract.

3.Continue with the contract but then sue for damages.

On the other hand, a warranty is not vital to thecontract.

If one party breaches a warranty then the other party

can only continue with the contract and then sue for

damages

WARRANTY:

Conditions & Warranty


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1) Express -which are expressly provided in the contract.

2) Implied- which the law implies into the contract unless the

parties stipulate to the contrary.

Types of Conditions & Warranty

Diff b t


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Warranty

1. It is only collateral to main

purpose of contract.

2. The aggrieved party can

claim only the damages incase of breach of warranty.

3. A breach of warranty cannot

be treated as breach of

condition.

ondition

1. A condition is essential to themain purpose of the contract.

2. The aggrieved party canrepudiate the contract or claimdamages or both in case of

breach of condition.

3. A breach of condition may betreated as breach of warranty.

Difference between

Condition & Warranty


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Condition as to title [sec.14(a)]Seller has the righ t to sell.

The buyer shall have and enjoy quiet possession of the goods.

Goods shall be free from any charge or encumbrance in favor of any third

party not declared or known to the buyer before or at the time when the

contract is made.

Sale by description[sec.15]-Goods shal l correspond w ith thedescr ipt ion.

Impose obligation on seller and manufacturer where sale made in course of

business.

Where the purchaser has not seen the good and relies on the description alone,the buyer must get what has been described.

Provided that, in the case of a contract for the sale of a specified article under its

patent or other trade name, there is no implied condition as to its fitness for any

particular purpose.

Implied Conditions


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Sale by sample [sec.17]In the case of a contract for sale by sample there is an implied condition

(a)that the bulk shall correspond with the sample in quality .

(b)that the buyer shall have a reasonable opportunity of comparing the bulk with

the sample.

(c)that the goods shall be free from any defect, rendering them unmerchantable,

which would not be apparent on reasonable examination of the sample.

Condition as to quality or fitness [sec16(1)]

There is no implied condition as to the quality or fitness of the goods sold for

any particular purpose .

However the condition has to the reasonable fitness of goods for a particular

purpose may be implied if the buyer had made know to the seller the purpose of

his purchase and relied upon the skill and judgment of the seller to select the

best goods and the seller has ordinarily been dealing in those goods.

Implied Conditions ...contd.


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1.Warranty of quiet possession [sec.14(b)].

In a contract of sale, unless there is a contrary intention, there is an implied warranty

that the buyer shall have and enjoy quite possession of the goods. If the buyer is in any

way disturbed in the enjoyment of the goods in consequences of the sellers defective

title to sell, he can claim damages from the seller.

2. Warranty of freedom from encumbrances [sec.14(c)].

In addition to the previous warranty, the buyer is entitled to a further warranty that the

goods are not subject to any charges or right in favors of a third party. If his possession isin any way disturbed by reason of the existence of any charge or encumbrance on the

goods in favor of any third party, he shall have a right to claim damages for breach of this

warranty.

3. Warranty as to quality or fitness by usage of trade [sec16(4)].

An implied warranty as to quality or fitness for a particular purpose may be annexed bythe usage of trade.

4. Warranty to disclose dangerous nature of goods.

Where a person sells goods, knowing that the goods are inherently dangerous or they are

likely to be dangerous to the buyer and that the buyer is ignorant of the danger, he must

warn the buyer of the probable danger, otherwise he will be liable in damages.

Implied Warranty


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The principle termed as caveat emptor means buyer be

aware. Generally, buyer is expected to be careful while

purchasing the goods and seller is not liable for any defects in

goods sold by him. This principle in basic form is embodiedin section 16 that subject to provisions of Sale of Goods Act.


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The general rule no one can givethat which one has not got

Sale by person not the ownereffect of estoppel

Sale by mercantile agent

Sale by one of joint owners

Sale by person in possession undervoidable contract

Seller in possession after sale

Buyer in possession after sale Sale by an unpaid seller

Transfer of Title


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Goods must be ascertained.

Specific goods in a deliverable state.

Specific goods to be put in a deliverablestate.

Specific goods in a deliverable state when

the seller has to do anything thereto inorder to ascertain price.

Sale of unascertained goods andappropriation.

Goods sent on approval or on sale orreturn.

Reservation of right of disposal.

Risk prima facie passes with the property.

Transfer Of Property


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The seller of goods is deemed to be unpaid [Sec. 45-1]

When whole of the price has not been paid of tendered.

When the bill of exchange or negotiable instrument has beenreceived as a condition of payment and the condition on which it

was received has not been fulfilled by the reason on dishonor of

the instrument or otherwise.

Unpaid Seller


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Rights of unpaid seller

Against the goods

Where theproperty in

the goods has

not passed

With holding

delivery

Stoppage in

transit

Where theproperty in

the goods haspassed

Lien

Stoppage in

transit

Re sale

Against the seller personally

Suit for priceRepudiation

of contractSuit for

damagesSuit for

interest


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Seller's lien.

Part delivery.

Termination of lien.

Right of stoppage in transit.

Duration of transit.

How stoppage in transit is effected.

The unpaid seller can exercise the right to re- sell the goods under the following

conditions .

1. When the goods are of a perishable nature . In such a case the buyer need not be

informed of the intention to resale.

2. When he gives notice to the buyer of his intention to re- sell the goods and the

buyer does not within a reasonable time pay or tender the price.

Unpaid Sellers lien

Stoppage in Transit

Resale


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Sellers Remedies Against Buyer:

Suit for Price.

Damages for non-acceptance.

Buyers Remedies Against Seller:

Damages for non-delivery.

Specific Performance. Remedy for Breach of Warranty.

Repudiation of contract before due date.

Interest by way of damages and special damages.

Suit for Breach of Contract


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Where under a contract of sale the propertyin the goods has passed to the buyer and the

buyer wrongfully neglects or refuses to payfor the goods according to the terms of thecontract, the seller may sue him for the price

of the goods.

Where under a contract of sale the price ispayable on a day certain irrespective ofdelivery and the buyer wrongfully neglectsor refuses to pay such price, the seller may

sue him for the price although the propertyin the goods has not passed and the goodshave not been appropriated to the contract.

Suit for Price


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Where the buyer wrongfully neglects orrefuses to accept and pay for the goods, the

seller may sue the buyer for damages for

non-acceptance.

Where the seller wrongfully neglects or

refuses to deliver the goods to the buyer, thebuyer may sue the seller for damages for non-

delivery.

Damages for Non-Acceptance

Damages for Non-Delivery


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Where either party to a contract of sale repudiates thecontract before the date of delivery, the other may either treat

the contract as subsisting and wait till the date of delivery, orhe may treat the contract as rescinded and sue for damages for

the breach.

Repudiation of contract before due date

Case Study


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NOKIA SERVICE TERMS

Case Study

Terms & Conditions of a Cell phone

1. Acceptance

These Nokia Service Terms together with the Privacy

Policy and all other additional terms and informationthat may be provided within the Service (collectively

Terms) govern your use of the service, site, content

and software (collectively the "Service"). By registering

for or using the Service or any portion of it you accept

the Terms.

The Terms constitute an agreement between you and

Nokia Corporation, Keilalahdentie 2-4, 02150 Espoo,

Finland including its affiliates and suppliers

(collectively Nokia), defining your and Nokias rights

and responsibilities with respect to the Service.

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.....contd2. EligibilityTo use the Service, you must be at least

thirteen (13) years of age. If you are

under thirteen (13) years of age, or at

least thirteen (13) years of age but a

minor where you live, you must haveyour parent or legal guardian accept

your registration on your behalf and

approve your use of the Service.

Anyone completing the registration

must be legally competent.

3. Registration and TerminationTo use a Service you may need to register and create

a Nokia account with username and a password. Youmay need to provide us with certain personal and

other information. Nokia may verify your email

address before account can be used. Upon first use of

your device and each time you update the Nokia

device software, a text message will be sent to Nokia.

The creation of a Nokia Account will require datatransmission. Data transmission costs may apply.

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.....contd4. Licenses

Nokia grants you a non-exclusive, non-transferable license,

revocable at any time at Nokias sole discretion, to access

and use the Service strictly in accordance with the Terms.

Use of the Service does not grant you any intellectualproperty rights in or to any information or content in the

Service.Using the Service

You agree to:

Comply with applicable laws, the

Terms and good manners.

Use the Service only for your

personal, non-commercial purposes.

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.....contd6. Content

Before downloading or accessing any

Content, please check whether the Content

which you wish to access is restricted by

age or marked as potentially offensive orexplicit. Nokia shall not be responsible

for any claims or offense caused or

suffered by you accessing such Content.7. Allegations of Copyright Infringement

You may notify Nokia of copyright infringement onthe Service by providing notice (a) by email with

Copyright Notification in the subject line

to [email protected], (b) by a document

titled Copyright Notification mailed to Nokia, Attn:

Copyright Agent, 102 Corporate Park Drive, White

Plains, NY 10604, USA or (c) via the online form, ifavailable.

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mailto:[email protected]:[email protected]


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.....contd8. Notices

Nokia may post notices within the Service. Nokia

may also send you notices about products and

Services to the email address or telephone number

you have provided to us. You are deemed to have

received such notices at the latest within seven (7)days from Nokia sending or posting those. Your

continued use of the Services constitutes your

receipt of all notices regardless of delivery method.

9. Fees

Your use of the Service may be or may become

subject to charges.

Any fees charged by Nokia will be announced

separately in connection with the Service.

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.....contd10. Order and Payment Terms

"Order" shall mean the selection of payable

Content and/or subscription to Content offered by

Nokia and available in the Service and submission

of payment method, as well as submitting the orderby selecting the "buy", "ok", "I accept" or other

similar confirmation of acceptance in the order

flow or providing other indication of acceptance

terms that are presented to you in the order flow.

11. Cancellations and Refunds

You agree to the electronic delivery of Content

being initiated concurrently with the placement

of your Order. You will not be able to cancel

your Order once it has been processed. The

nature of the Content is such that it cannot bereturned.

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.....contd12. Feedback to Nokia

By submitting any ideas, feedback and/or proposals

("Feedback") to Nokia through the Service or other means, you

acknowledge and agree that:

(1) Nokia may have similar development ideas to the Feedback

(2) your Feedback does not contain confidential or proprietary

information of you or any third party

(3) Nokia is not under any obligation of confidentiality with

respect to the Feedback

(4) Nokia may freely use, distribute, exploit and further develop

and modify Feedback for any purpose and

(5) you are not entitled to any compensation of any kind fromNokia.

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.....contd

13. Social Activities and Location SharingYou may use features in the Service to share your location, status,

content, Materials or personal information or to interact with other

users, sites and services. By using these features you agree that

Nokia may use and provide that information to other services and

persons with whom you choose to interact or share thisinformation. Users of these services and persons, such as your

contacts, may see your location, status and/or personal information.

In using these features you agree not to share information, Content

or Material, or to link to any service or site containing information,

Content or Material, that:

(a) contains content or other material that is illegal orinappropriate;

(b) exploits intellectual property rights without authorization or

encourages users to piracy; or

(c) contains sensitive personal data of others. Any interaction does

not involve Nokia and is solely between you and the other user(s).

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.....contd14. Availability and Technical RequirementsThe availability of Content and the Service may

vary and is subject to Nokias sole discretion.

Nokia expressly disclaims any representation or

warranty that any particular Content or Service will

be available. The Service may not be available inall countries and may be provided only in selected

languages. The Service, operations and some

features may also be dependent on the network,

compatibility of the devices used and the content

formats supported.

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.....contd15. Links to Third Party Sites and ContentNokia may include access to sites and services on the Internet or preloaded clients that

enable you to interact with sites and services that are owned or operated by third parties

and that are not part of the Service. You must review and agree to the terms and conditions

of these sites or services before using these sites or services.

16. AdvertisementsService may include advertisements. Advertisements

may be targeted to the content or information stored on

the Service, queries made through the Service, or other

information.

17. Personal DataThe Privacy Policy and any additional

privacy information made available to you

govern the use of your personal data.

Case Study


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.....contd18. Limitation of Liability

The Service is provided on AS IS and AS AVAILABLE basis. Nokia does not

warrant that the Service will be uninterrupted or error or virus-free. No warranty of

any kind, either express or implied, including but not limited to warranties of title,

non-infringement, merchantability, or fitness for a particular purpose, is made inrelation to the availability, accuracy, reliability, information or content of the

Service. You expressly agree and acknowledge that the use of the Service is at your

sole risk and that you may be exposed to content from various sources.

Case Study


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.....contd19. Indemnification

You agree to defend and indemnify Nokia from and

against all third party claims and all liabilities,

assessments, losses, costs or damages resulting

from or arising out of(i) your breach of the Terms,

(ii) your infringement or violation of any

intellectual property rights, other rights or

privacy of a third party, or

(iii) misuse of the Service by a third party where

the misuse was made possible by your failureto take reasonable measures to protect your

username and password against misuse.

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.....contd20. Miscellaneous

20.1 Choice of LawThe Terms are governed by the laws of Finland without regard to its conflicts of

law provisions.

20.2 Validity

The Terms neither exclude nor limit any of your mandatory rights in yourcountry of residence that cannot by law be waived. If a provision of the Terms is

found to be invalid, the remaining provisions will not be affected and the

invalid provision will be replaced with a valid provision that comes closest to

the result and purpose of the Terms. In the event one or more provisions of these

Terms are not relevant to your use of the Service, it shall not impact the validity

or enforceability of any other provision of the Terms or the Terms as a whole. Ifthere is any conflict between these Nokia Service Terms and the Privacy Policy,

the provisions of these Nokia Service Terms prevail. The provisions of the

Terms that are intended to survive termination of your registration remain valid

after termination.

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.....contd20.3 Changes in Terms

Nokia may modify the Terms at any time without prior notice. If the Terms are changed

in a material, adverse way, Nokia will provide a separate notice advising of the change.

You are responsible for regularly reviewing the Terms. Your continued use of the

Service constitutes your consent to any changes and modification.

21. Intellectual PropertyThe Service, Content and Software are protected under international copyright laws.Nokia claims copyrights in its Service, Content, and Software to the maximum extent of

the law. Subject to the Terms, Nokia retains all right, title and interest in the Service, its

Content, the Software and in all other Nokia products, software and other properties

provided to you or used by you through the Service.

22. AssignmentNokia may assign its rights and obligations under these Terms to its corporate parent, its

subsidiaries, or to any company under common control with Nokia. Additionally, Nokia

may assign its rights and obligations under these Terms to a third party in connection

with a merger, acquisition, sale of assets, by operation of law or otherwise.


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Documents

Sale of Goods Act 1930- Candida