The Sale of Goods Act, 1930

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Meaning and Defination :

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. may be a contract of sale between one part owner and another [section 4(1)]. contract of sale may be absolute or conditional. [Section 4(2)]. of Property in goods for a Price.
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There

Transfer

Goods :
Section

2(7) says : Goods means every kind of movable property other than actionable claims and money and includes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be served before sale or under the contract of sale. claims means claims which can be enforced by a legal action. E.g. debt.
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Actionable

Types of Goods :
Existing

goods. Future goods. Contingent goods.

Specific

[Possessed at the time of sale] [Will be Possessed ] [Uncertain ]

Goods.. Ascertained goods Unascertained goods.

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 Section

Contract of sale & Agreement to sell

to sell.

4(1) include both Sale & Agreement

Section

4(3) shows the difference.

Contract

of Sale : The property in the goods is transferred from the seller to the buyer, the contract is a sale. to sell : The transfer of property in goods is to take place at a future time or subject to some conditions thereafter to be fulfilled is agreement to sell.
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Agreement

Highlights :
: A sale is an executed contract Agreement to sell is an executory contract. Transfer of ownership of property : Types of goods or nature of property transferred : General and particular property : Cons
Nature

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Conditions & Warranties ( Section 12 )

A

contract of sale may consist of number of Stipulations. Some of them may be very important. Non performance of such stipulations may amount to breach of contract. Such stipulations are called as Contract.
Less

important stipulations are called as Warranties.

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Conditions & Warranties ( Section 12 )

Section

12(1) : A stipulation (specification) in a contract of sale with reference to goods which are subject thereof may be a condition or warranty. 12(2) : A condition is a stipulation essential to main purpose of the contract, the breach of which gives rise to a right the contract as repudiated (reject).

Section

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Conditions & Warranties ( Section 12 )

Section 12(3) : A warranty is stipulation collateral to the main purpose of the contract, the breach of which gives right to a claim for damages, but not a right to reject the goods and treat the contract as repudiated.

Section

12(4) : Whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract. Section 13 : Condition is treated as warranty.
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Implied conditions in a contract of sale :

Condition

as to title : Section 14 (a) Condition as to sale by description. Sec-15 Condition as to sale by description as well as by sample. Condition as to sale by sample. Sec-17 Condition as to quality or fitness. Sec-16(1) Condition as to Merchantability. Sec-16(2) Condition as to Wholesomeness. Condition implied by custom. Sec-16(3)

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Implied conditions in a contract of sale :

Implied

14(B) Implied warranty of freedom from encumbrance. Sec-14(c) Implied warranty as to quality or fitness by usage of trade. Sec-16(3) Implied warranty to disclose dangerous nature of goods.

warranty of quiet possession. Sec-

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Difference Between Condition and Warranty : Purpose : A condition is a stipulation which is essential to the main purpose of the contract of sale.
A

warranty is a stipulation which is only collateral to the main purpose of contract of sale. : If there is breach of a condition, the aggrieved party gets a right to sue for damages as well as a right to repudiate the contract.
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Breach

Difference Between Condition and Warranty : Treatment : A breach of condition may be treated as a breach of warranty.
But

a breach of warranty cannot be treated as a breach of condition. of Sale : A condition goes directly to the root of the contract. Main purpose of the contract will be served by condition. warranty is subsidiary to the contract of sale.
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Contract

NEMO DAT QUOD NON HABET Sec-18 to 30 reg. Transfer of ownership in the property.
The DOCTRINE OF

[ A seller is either the absolute owner of the goods or is fully authorized to sell the goods.]

Only

the owner of the goods can transfer a good title. No one can give something which he himself has not or which he himself does not possess. Sec-27 Unauthorized Seller-Buyer.

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The DOCTRINE OF : CAVEAT

EMPTOR.
Sec-16

: When a seller sells his goods, he only warrants that his goods shall be fit for some purpose, but he does not give any guarantee that they will be fit for any particular purpose. buyer, unless otherwise agreed upon, cannot reject the goods purchased on the basis of any latent defects unless they render the goods unmerchantable of the seller purposely concealed the defects.
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The

Exceptions to the DOCTRINE OF CAVEAT

EMPTOR.
1.Implied

condition as to quality or fitness for buyers purpose. Sec-16[1] 2. Merchantable quality or sale of goods by description. Sec-16[2] 3. Usage by trade. 16[3] Consent by fraud.

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Rights of An Unpaid Seller and Remedial Measures :

Unpaid

Seller : 1. When the whole of the price has not been paid or tendered. 2. The bill of exchange or other negotiable instrument has been received as conditional payment, And the condition on which it was received has not been fulfilled by reason of the dishonor of the instrument or otherwise. Sec45[1]

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Conditions:
1.He

must have sold goods against cash and the price must be due. He must be unpaid either wholly or partly.

2. 3.

He must have an immediate right of action for the price. He must have not refused payment when tendered. A bill of exchange or any other negotiable 4/21/12 instrument was received but dishonored.

4.

5.

Rights :

Rights against goods.

Rights against the buyer personally. 1.Suit for price. 2. Suit for damage 3. Repudiation of contract. 4. Suit for contract.

Where property Where property in In goods has passed. Goods has not passed.

Right of lien

Stoppage of goods in transit.

Resale

Withholding the delivery of goods

Stoppage In transit.

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