Amity Business School

Amity Business School

MBA ( G), Semester I
Economic and Business Legislation
Monica Suri

1
 Amity Business School

SALE OF GOODS ACT

OF 1930

2
 Amity Business School

Rights of an unpaid seller

Unpaid seller (section 45)

• Whole price not paid

• B/E has been received as a conditional payment or has been dishonoured

RIGHTS CAN BE ENFORCED

• Against the goods
• And against the buyer personally

3
 Amity Business School

RIGHTS AGAINST THE GOODS:

1.RIGHT OF LIEN (SEC 47 to 49): RIGHT TO RETAIN
POSSESSION AND REFUSE TO DELIVER TILL PRICE IS
PAID.
2. RIGHT OF STOPPAGE OF GOODS (SEC50 to 52):
RIGHT TO STOP WHEN THEY ARE IN TRANSMISSION
WHICH CAN BE DONE
Either by taking actual possession // giving notice of his claim
to the carrier.
3.RIGHT OF RESALE( SEC 54)

4
 Amity Business School

RIGHTS AGAINST THE BUYER

1. SUIT FOR PRICE (SEC 55)

2. SUIT FOR DAMAGES FOR NON

ACCEPTANCE (SEC 56)

3. SUIT FOR INTEREST ( SEC 61)

5
 Amity Business School

Remedies to the Buyer against the Seller

1. SUIT FOR DAMAGES FOR NON-DELIVERY
( SEC 57)
2. SUIT FOR SPECIFIC PERFORMANCE ( SEC 58)
3. SUIT FOR BREACH OF WARRANTY
( SEC 59)
4. SUIT FOR RESCINDING THE CONTRACT
( SECTION 60)
5. SUIT FOR RECOVERY OF PRICE AND
INTEREST ( SEC61)

6
 Amity Business School

CONDITIONS AND WARRANTIES:

Stipulation means a requirement or specified item in an

agreement. It can be of two types:

•Condition
•Warranty

A stipulation is a condition if it is essential to main purpose of

contract.
A stipulation is a warranty if it is collateral to the main purpose
of the contract.

7
 Amity Business School

• TYPES OF CONDITIONS AND WARRANTIES

• Both may be either

• Expressed
• Implied
• Expressed are in the Contract and defined in
terms of sale.

8
 Amity Business School

• IMPLIED CONDITIONS:
1. Condition as to title eg : a stolen car cannot have
a good title.
2.Sale by description eg : selling a new LG
machine as in invoice , but on delivery found to
be second hand.
3. Sale by sample: eg sample of cloth supplied and
given differs. Contract can be avoided by buyer.

9
 Amity Business School

• 4. Sale by sample as well as description

• 5. Condition as to quality or fitness.

• Eg : buying a tweed coat and catching disease.
The seller cannot be guilty.

• 6. Condition as to merchantibility.

• 7. Condition as to wholesomeness

10
 Amity Business School

• IMPLIED WARRANTIES
1. Warranty of quiet possession
2. Warranty of freedom from
encumbrances
3. Warranty as to quality or fitness by usage
of trade
4. Warranty to disclose dangerous nature of
goods
11
 Amity Business School

• FAQ
1. Conditions and warranties are
indispensable to formation of contract.
2. Doctorine of Caveat emptor and it’s
exceptions.
3. What are the various types of goods.

12