Sa|e of Goods Act 1930

Group Members Roll No

Vinit Lagade
Karthik Mehta
Mayur Dave
Priyank Doshi
Sanjay Pawar
17
19
03
13
24
ontents
Contract of saIe of goods.
Factors essentiaI of contract of saIe.
SaIe v/s Agreement to saIe.
SaIe v/s Hire-purchase agreement.
Condition and Warranty.
Rights Of An Unpaid SeIIer.
BaiIment and PIedge.
ontract of sa|e of goods
W A conLracL of sale of goods ls a conLracL
whereby Lhe seller Lransfers or agrees Lo
Lransfer Lhe properLy Lo goods Lo Lhe buyer for
a prlce
W 1here may be a conLracL of sale beLween one
parLowner and anoLherSec 4(1) A conLracL
of sale may be absoluLe or condlLlonal
sec 4(2)
Vinit Lagade 17
actors essent|a| of contract of
sa|e
W 1wo arLles 8uyer sec 2(1)
Seller sec 2(13)
W Coods MusL be movable
W rlce musL be ln moneLary Lerms
Vinit Lagade 17
Sa|e v]s Agreement to sa|e
Sa|e Agreement to sa|e
1ransfer of properLy ln Lhe goods passes
lmmedlaLely
1ransfer of properLy ln goods ls Lo Lake
place aL a fuLure Llme or sub[ecL Lo cerLaln
condlLlons Lo be fulfllled
A sale can be ln case of exlsLlng and
speclflc goods only
An agreemenL Lo sell ls mosLly ln case of
fuLure and conLlngenL goods
lf goods are desLroyed Lhen loss falls on
Lhe buyer even Lhough goods are ln Lhe
possesslon of seller
lf goods are desLroyed Lhe loss falls on Lhe
seller even Lhough goods are ln
possesslon of Lhe buyer
lf buyer falls Lo pay Lhen seller can sue
buyers for Lhe prlce even Lhough lf goods
are ln possesslon of seller
lf buyer falls Lo pay Lhen seller can sue for
damages and noL for Lhe prlce even
Lhough goods are ln possesslon of buyer
A sale ls a conLracL plus conveyance le
glves rlghL Lo buyer Lo en[oy Lhe goods or
use lL
An agreemenL Lo sell ls merely a conLracL
pure and slmple le glves a rlghL Lo Lhe
buyer agalnsL Lhe seller Lo sue for
damages
Vinit Lagade 17
Sa|e v]s n|repurchase agreement
Sa|e n|re purchase agreement
wnershlp ls Lransferred from Lhe seller
Lo Lhe buyer as soon as conLracL ls
enLered lnLo
wnershlp ls Lransferred from Lhe seller
Lo Lhe hlre purchaser only when a cerLaln
agreed number of lnsLallmenL ls pald
1he poslLlon of buyer ls LhaL of owner 1he poslLlon of hlre purchaser ls LhaL of
Lhe ballee
1he buyer cannoL LermlnaLe Lhe conLracL
and as such ls bound Lo pay Lhe prlce of
Lhe goods
1he hlre purchaser has a opLlon Lo
LermlnaLe Lhe conLracL aL any sLage and
cannoL be forced Lo pay Lhe furLher
lnsLallmenLs
lf Lhe paymenL made by Lhe buyer ln
lnsLallmenL Lhe amounL payable by Lhe
buyer Lo Lhe seller ls reduced for Lhe
paymenL made by Lhe buyer ls Lowards
Lhe prlce of Lhe goods
1he lnsLallmenL pald by Lhe hlre purchaser
are regarded as hlre charges and noL as
paymenL Lowards Lhe prlce of Lhe goods
Llll opLlon Lo purchase Lhe goods ls
exerclsed
Vinit Lagade 17
ond|t|ons and Warrant|es
W What |s a cond|t|on? Sec 12 (2)
A condlLlon ls a sLlpulaLlon essenLlal Lo Lhe maln purpose of
Lhe conLracL Lhe breach of whlch glves rlse Lo LreaL Lhe
conLracL as repudlaLed or broken
W What |s a warranty? Sec 12 (3)
A warranLy ls sLlpulaLlon collaLeral Lo Lhe maln purpose of Lhe
conLracL Lhe breach of whlch glves rlse Lo a clalm for
damages buL noL Lo a rlghL Lo re[ecL Lhe goods and LreaL Lhe
conLracL as repudlaLed or broken
Karthik Metha 19
|st|ngu|sh between ond|t|on and Warranty
ond|t|on
W St|pu|at|on CondlLlon ls an
essenLlal sLlpulaLlon or Lerm of
Lhe conLracL of sale
W emedy 8reach of condlLlon
glves rlghL Lo repudlaLed and
also a rlghL Lo clalm damages
W erc|se of opt|on 8reach of
condlLlon may be LreaLed as a
breach of warranLy
Warranty
W St|pu|at|on WarranLy ls a
collaLeral or lncldenLal sLlpulaLlon
Lo Lhe maln purpose of Lhe
conLracL
W emedy 8reach of warranLy
glves rlghL Lo clalm damages only
lL does noL enLlLle a buyer Lo
re[ecL Lhe goods and LreaL Lhe
conLracL as repudlaLed
W erc|se of opt|on A breach of
warranLy cannoL be LreaLed as a
breach of condlLlon
arthik Metha 19
@he d|st|nct|on between the two may be |||ustrated as
fo||ow
A man buys a parLlcular horse whlch ls warranLed quleL Lo rlde
and drlve lf Lhe horse Lurns ouL Lo be vlclous Lhe buyer's only
remedy ls Lo clalm damages 8uL lf lnsLead of buylng a
parLlcular horse a man asks a dealer Lo supply hlm wlLh a
quleL horse and Lhe horse Lurns ouL be vlclous Lhe sLlpulaLlon
ls a condlLlon and Lhe buyer can re[ecL Lhe horse or keep Lhe
horse and clalm damages
Karthik Metha 19
|ghts Cf An Unpa|d Se||er
Mayur Dave 03
W Dnder erformance of ConLracL of Sale u/s 31 lL
ls Lhe duLy of Lhe Seller Lo dellver Lhe goods and
of Lhe 8uyer Lo accepL and pay for Lhem ln
accordance wlLh Lhe Lerms of Lhe conLracL for
sale
W 8lghLs of Lhe Dnpald Seller can be agalnsL Lhe
goods or agalnsL Lhe 8uyer personally as regards
Lhe goods Lhe Seller has
W8lghL of llen
W8lghL of sLoppage ln LranslL
W8lghL of resale
Mayur Dave 03
|ght of ||en
WL|en ls Lhe rlghL Lo reLaln possesslon of goods and refuse
Lo dellver Lhe good Lo Lhe buyer unLll Lhe prlce due ln
respecL of Lhem ls pald or Lendered
WLlen may arlse by sLaLuLe express or lmplled conLracL
and ln ordlnary course of deallngs
Wor an eamp|e In s|mp|e ||en states that |f A who us a
buyer and 8 who |s a se||er 8 has the r|ght to keep the
possess|on of the goods w|th h|m and wont de||ver unt||
A (buyer) makes the payment of goods to 8 (se||er)
Mayur Dave 03
Right of stoppage in transit
WWhen Lhe buyer of goods becomes lnsolvenL Lhe unpald seller who has
parLed wlLh Lhe possesslon of Lhe goods has Lhe rlghL of sLopplng Lhem ln
LranslL LhaL ls Lo say he may resume possesslon of Lhe goods as long as Lhey
are ln Lhe course of LranslL and may reLaln Lhem unLll paymenL or Lender of
Lhe prlce
W1ranslL does noL mean LhaL Lhe goods should be ln moLlon
W(or eg A who |s a buyer purchased goods from 8 who |s a se||er 8 has
d|spatched the goods from h|s p|ace and wh||e the goods |s |n trans|t 8
comes to know that A has become |nso|vent Now 8 has the r|ght to stop
the de||very of goods when they are |n trans|t so goods are stopped |n
trans|t unt|| A who |s the buyer pays h|s dues)
Mayur Dave 03
|ght of esa|e (sec S4)
W When Lhe unpald seller has exerclsed hls rlghL of llen on hls
reLalnlng Lhe possesslon of Lhe goods or resumes possesslon of
Lhe goods by exerclslng hls rlghL of sLoppage ln LranslL upon
lnsolvency of Lhe buyer he can resell Lhe goods under followlng
clrcumsLances
l Where Lhe goods are of perlshable naLure
ll Where Lhe sellers glves noLlce Lo Lhe buyer of hls lnLenLlon Lo re
sell Lhe goods and buyer does noL pay Lhe prlce wlLhln a
reasonable Llme afLer Lhe noLlce
lll Where Lhe seller has expressly reserved hls rlghL of resale ln case
Lhe buyer makes defaulL
W 1herefore seller has Lhe full rlghL Lo resale Lhe goods lf Lhe buyer
does noL pay hlm ln Lhe glven Llme frame
Mayur Dave 03
lat |s BA||MEN! 777
Accordlng Lo sec 148
#A ballmenL ls Lhe dellvery of goods by one person Lo anoLher for some
purpose upon a conLracL"
lL also means 'Lo dellver' or 'Lo hand over' lL consLlLuLes dellvery of
possesslon of goods for some speclflc purpose
lL also a conLracL beLween 8AILC and 8AIL
1he person dellverlng Lhe goods ls called '8allor'
1he person Lo whom Lhey are dellvered ls called '8allee'
#|glts af Ba|lar #|glts af Ba|lar
W 1rcut builmcnt us voioublc(scc. 18!).
W #cturn ol gooos(scc.160 161).
W luim comcnsution lor wronglul usc ol gooos b, builcc (sccs.18=):
W Iu case o| mixture o| oods b baiiee(sccs.188-181)
W 1o rcccivc un, incrcusc or rolit lrom gooos builco(scc.16!):
:t|es aa ||a||l|t|es af tle Ba|lar
W !ut baiiee iuto jossessiou,sec.=).
W lisciose |auits iu tue oods baiied,sec.0).
W Keja uecessar exjeuses,sec.).
W Kesjousibiiit |or au ioss due to de|ect iu
titie,sec.o=).
W 1o take back tue oods.
#|glts af Ba|lee
W !articuiar iieu,sec.0)
W 1o kuov |auits iu tue oods baiied to uim,sec.0)
W Ciaim jrojortiouate suare iu oods mixed,sec.)
W Ciaim exjeuses o| baiimeut,sec.)
W Ciaim iosses |or de|ect iu titie o| baiior,sec.o0)
W lu|orcemeut o| riuts
:t|es aa ||a||l|t|es af Ba|lee
W 1o take reasouabie care o| tue oods baiied,sec.).
W uautuorised use o| oods baiied,sec.=).
W Keturu o| oods,sec.o0 c o).
W 1o deiier au iucrease or jro|it accrued ou tue oods,sec.o!).
W 1o ja damaes.
ef|n|t|on
Wledge means Lo deposlL personal properLy as securlLy for a personal loan
of moneylf Lhe loan ls noL repald when dueLhe personal properLy pledge
shall be forfelL Lo Lhe lender 1he properLy ls known as collaLeral 1o pledge
ls Lhe same as Lo pawn Lo promlse Lo do someLhlng
W 1he ballor ln Lhls case ls called Lhe #pawnor"
W1he ballee ls called Lhe #pawnee"
W1he LransacLlon ls called pledge or pawn ledge ls Lherefore a klnd of
ballmenL
Wledges are a form of securlLy Lo assure LhaL a person wlll repay a debL or
perform an acL under conLracL
Wln a pledge one person Lemporarlly glves possesslon of properLy Lo
anoLher parLy
Wledges are Lyplcally used ln securlng loans pawnlng properLy for cash
and guaranLeelng LhaL conLracL work wlll be done
Sanjay Pawar 24
|ghts of a awnee
W @o reta|n (S 173 174) Lhe awnee may reLaln Lhe goods for
l aymenL of Lhe debL or Lhe performance of Lhe promlse
ll lnLeresL on Lhe debL and
lll All necessary expenses lncurred by hlm ln respecL of Lhe possesslon or
preservaLlon of Lhe goods pledged
W @o recover etra ord|nary epenses(S17S) Lhe awnee ls enLlLled Lo
recelve from Lhe pawnors exLraordlnary expenses lncurred by hlm for
Lhe preservaLlon of Lhe goods pledged
W |ght on pawnors defau|t (S 176) lf Lhe pawnors makes a defaulL ln
paymenL of Lhe debL Lhen Lhe pawnee may brlng a sulL agalnsL Lhe
pawnor upon Lhe debL or promlse or reLaln Lhe goods pledged as a
collaLeral securlLy
Sanjay Pawar 24
|ghts of awnor
W|ghts of redempt|on (S177) awnee's rlghL of sale ls sub[ecL
Lo Lhe pawnor's exerclse of rlghL of redempLlon on paymenL of
Lhe debL or performance of Lhe promlse 8oLh of Lhelr rlghL of
sale and rlghL of redempLlon are concurrenL rlghLs
Wreservat|on and ma|ntenance 1he pawnor can enforce
preservaLlon and proper malnLenance of Lhe goods pledged
W@o rece|ve back the goods Lhe pawnor has Lhe rlghL Lo recelve
back Lhe goods on paymenL of Lhe debL or on Lhe performance
of Lhe promlse
Sanjay Pawar 24