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SYLLABUS
Contract for Sale of Goods - Meaning Essentials of a Contract of Sale Formalities of a Contract of Sale - Provisions relating to conditions and Warranties Provisions relating to transfer of property or ownership - Provisions relating to performance of Contract of Sale - Rights of Unpaid Seller Rules as to delivery of goods
LAB - THE SALE OF GOODS ACT, 1930 2
TYPE OF GOODS
EXISTING GOODS Specific Goods, Ascertained Goods, Generic / Unascertained Goods FUTURE GOODS CONTINGENT GOODS
EXISTING GOODS 1
EXISTING GOODS Specific Goods, Ascertained Goods, Generic / Unascertained Goods Specific Goods are those goods which are identified & agreed upon, at the time of sale Goods identified or which become ascertained subsequent to formation of contract of sale are called as Ascertained Goods
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EXISTING GOODS 2
Goods which are not identified or which become ascertained subsequent to formation of contract of sale are called as Generic or Unascertained Goods
AGREEMENT TO SELL 1
Where the transfer of property in the goods is to take place at a future time or subject to some conditions thereafter to be fulfilled, then the contract is called as; an agreement to sell. Section 4(3) clearly defines the difference between a Sale & Agreement to Sell.
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AGREEMENT TO SELL 2
An agreement to sell becomes a sale when the time elapses; all the conditions are fulfilled subject to which the property in the goods is to be transferred.
The liability to pay sales tax arises only when there is an actual sale, not an agreement to sell
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CONTRACT OF SALE
The essential object of the contract of sale is the exchange of property for a price, which is decided and agreed by both parties.
There must be a transfer of property or an agreement to transfer it, from one party, the seller, to the other, the buyer, in consideration of payment of money.
To complete the Contract of sale, the owner must pass the title of those goods to the buyer.
LAB - THE SALE OF GOODS ACT, 1930 13
TRANSFER OF OWNERSHIP
TYPE OF GOODS / NATURE OF PROPERTY TRANSFERED CONSEQUENCES OF BREACH RISK OF LOSS
The buyer automatically The seller remains the becomes the owner, so he is owner, so he is responsible responsible for all the for all the losses lossesTHE SALE OF GOODS ACT, 1930 LAB 14
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But if hirer fails to pay any installment, then seller can terminate that contract.
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The buyer is not entitled The hirer has the option to terminate the contract. to terminate contract at any time. The buyer pays the price The buyer pays the price immediately in installments
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In case of breach, the buyer In case of breach, the buyer can cancel the contract & can sue for damages sue for damages Breach of condition is treated as breach of contract If there is breach of condition, the buyer has an option to claim damages, instead of repudiating the contract
LAB - THE SALE OF GOODS ACT, 1930
Breach of warranty is not treated as breach of contract In case of breach of warranty, the buyer can in no way can terminate contract, he can only claim for damages
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IMPLIED CONDITIONS
Condition of Title Change in the title of the goods, from seller to the buyer Sale by Description under Sec. 15, when the goods are sold by description, the goods must be of that particular description Sale by sample it must imply that a) The goods in bulk correspond the sample b) The buyer must have reasonable time to inspect the goods
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RIGHTS AGAINST THE GOODS Where property in goods has not passed
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THANK YOU!!!
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