Sales Of Goods Act Lecture Notes, Lecture notes of Sales Management

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PRESENTATION BY:

ABHA PILLAI ANJALI SINGH

KALYANI PATEL

INDRANI DUTTA

ANNPURNA VERMA

SALES OF GOODS ACT

(1930)

TOPICS COVERED……….

 Formation of contract of sales and its

element

 Difference between sale and

Agreement to sell

 Classification of goods

 Conditions and warranties

 Rule of Caveat Emptor

 Unpaid seller

 Auction sale

Formation

of

contract of sale and

its essential

TOPIC 1

DEFINITION………..

Sec 4(1) of the Indian Sale of

Goods Act, 1930 defines the contract of the sale of goods in the following manner:

“ A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price”.

Essentials of a contract of sale

 Two parties- buyer and seller

 Goods

 Price

 Transfer of general property

 Essential elements of a valid contract

 A contract of sale may be absolute or conditional.

TOPIC 2

DIFFERENCE

BETWEEN SALE

AND AGREEMENT

TO SELL

Sale

Agreement to sell

 In case of breach of a contract, seller can sue for the price of the goods.  The seller is only entitled to the ratable dividend of the price due if the buyer becomes insolvent.  The buyer is entitled to recover the specific property from the assignee if the seller becomes insolvent.

 In case of breach of a contract, seller can sue only for damages not for the price.  The seller may refuse to sell the goods to the buyer w/o payments if the buyer becomes insolvent.  Buyer can claim only ratable dividend for the money paid.

Difference……….

Classification

of

goods

TOPIC 3

Conditions

and

warranties

[sec 12]

Topic 4

Terms……….

 Representation: Statement made by the seller before entering into a contract.

 Stipulation: If such representation forms an integral part of the contract and other party relies upon it.

 No Representation: CAVEAT EMPTOR’

i.e., Let the Buyer Beware – is applied

Condition [sec12(2)]

 “ A COndiTiOn is A sTiPulATiOn EssEnTiAl TO

the main purpose of the contract, the

breach of which gives rise to a right to

TREAT ThE COnTRACT As REPudiATEd.”

 It goes to the root of the contract.

 Its non fulfillment upsets the very basis

of the contract.

Condition [sec12(2)]

 Example :- [Behn v. Burness,1863]

 By charter party( a contract by which a ship is hired for the carriage of goods), it was agreed that ship m of 420 tons “now in port of Amsterdam” should proceed direct to new port to load a cargo. In fact at the time of the contract the ship was not in the port of Amsterdam and when the ship reached Newport, the charterer refused to load. Held, the words “now in the port of Amsterdam” amounted to a condition, the breach of which entitled the charterer to repudiate the contract.

Condition Warranty

A breach of condition may be treated as breach of warranty.

The breach of warranty cannot be treated as a breach of a condition.

Distinction……

TYPES…….

 Express Conditions :

Expressly provided in the

contract

 Implied conditions &

warranty(sec 14 to 17) : Which

the law implies in a contract of

sale