2.sale of goods act and restrictive trade practices
TRANSCRIPT
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
1/17
Sale of goods act and restrictivetrade practices
BY
PROF. MAYUR MALVIYA
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
2/17
Contract of Sale
Definition
(Section 4)
A contract of sale of goods is a contract whereby the seller transfers or agreesto transfer the property in goods to the buyer for price".
ESSENTIALS OF CONTRACT OF SALE
From the above definition, the following essentials of a contract of sale may bynoted:
1. There must be at least two parties
2. Transfer or Agreement to transfer the ownership of goods.
3. The subject matter of the contract must necessarily be 'goods'.
4. The consideration is Price.
5. A Contract of sale may be absolute or conditional
6. All other essentials of a valid contract must be present.
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
3/17
Sale and Agreement to Sell
1. A sale is an executed contract 1.An Agreement to sell is anexecutory contract.
2. In a sale, since the property haspassed to the buyer, the seller can suethe buyer for the price of the goods.
2.In an agreement to sell, in case ofbreach, the seller can only sue fordamages, unless the price was payableat a stated date.
3. A sale creates a right in rem 3.An agreement to sell creates a right inpersonam
4. In case of loss of goods, the loss will
fall on the buyer, even though the goodsare in the pos-session of the seller. It isbecause 'Risk' is as-sociated withownership
4.The loss in this case shall be borne by
the seller, even though the goods are inthe pos-session of the buyer.
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
4/17
Hire Purchase Agreement
It is an agreement for hire, with an option to purchase.
The hirer, under this agreement, is required to pay every month a
particular sum of money, and if he pays in that way for a fixed numberof months, the hirer will become the owner of the goods on thepayment of the last instalment.
, ,
terminate the contract and take away the goods, because theownership continues to remain in the owner. A "Hire-purchaseagreement" is distinct from "Sale" in which price is payable byinstalments
A 'Hire-purchase agreement,' does not result in passing of the propertyunless the option to purchase is exercised, usually by payment of all theinstalments. Till such time, it constitutes bailment.
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
5/17
CONDITIONS
In a contract of sale, parties make certain
stipulations, i.e., agree to certain terms. Some of them may be intended by the parties to be of
a fundamental nature, e.g., quality of the goods to be
supp e . The stipulation essential to the main purpose of the
contract, the breach of which gives rise to a right to
treat the contract as repudiated. Such stipulationsare known as `Conditions`.
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
6/17
Stipulation
Remedy Exercise of option as to treatment as breach of
warranty
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
1. Option of buyer2. Waived by buyer
3. Sale is not severable or contract is for specific
goods
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
7/17
Warranties
The stipulation collateral to the main purpose of the
contract, the breach of which gives rise to a claim fordamages but not to a right to reject the goods. Herethe stipulations are known as `warranties
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
8/17
Warranty as to title
By description By sample
ualit or fitness
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
Free from any charges over goods
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
9/17
Conditions and warranties'
The stipulation essential to the mainpurpose of the contract, the breach ofwhich gives rise to a right to treat the
contract as repudiated. Suchstipulations are known as
`Conditions`.
. The stipulation collateral to the mainpurpose of the contract, the breach of
which gives rise to a claim for damagesbut not to a right to reject the goods.
Here the stipulations are known as`warranties
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
10/17
CAVEAT EMPTOR
Caveat Emptor is a fundamental principle of the law of sale of goods. Itmeans "Caution Buyer", i.e. "Let the buyer beware".
In other words, it is not the duty of the seller's duty to point out defects ofhis own goods. The buyer must inspect the goods to find out if they will suithis purpose.
Exceptions:
.
2. Fraud
3. For specific purposes - Dr.Grant vs.Australian knitting mills
4. Merchantable quality
Caveat venditorLet the seller beware
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
11/17
DUTIES OF SELLER AND BUYER
Duty of the seller
To deliver the goods, in accordance with the terms of the contract of
sale.
Delivery and payment of price are concurrent conditions.
The seller of goods has the duty of giving delivery according to the.
Duty of the buyer
Pay for the goods;
Accept delivery; and Pay compensation to the seller in case he wrongfully refuses to accept
delivery.
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
12/17
Unpaid seller
An unpaid seller of goods is a person who has not beenpaid the whole of the price or to whom the whole of the
price has not been tendered. The term "seller" includes anagent of the seller.
The seller of goods is deemed to be an "unpaid sellerif:
a e w o e o e pr ce, as no een pa or en ere ;
(b) when a bill of exchange or other negotiable instrumenthas been received as conditional payment, and the
condition on which it was received has not been fulfilled byreason of the dishonour of the instrument or otherwise.
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
13/17
RIGHTS OF AN UNPAID SELLER
Rights againstgoods
(a)Lien onthe oods
Rights Againstthe Buyer
Personally
Right to sue forthe rice and
(b) A rightof stoppage
in transit
(c) A rightof re-sale
The right to sue thebuyer for damages for
non-acceptance
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
14/17
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
15/17
Unfair Trade Practices (36A)Unfair Trade Practices (36A)Unfair Trade Practices (36A)Unfair Trade Practices (36A)
WhereWhereWhereWhere bybybyby anyanyanyany methodmethodmethodmethod whatsoeverwhatsoeverwhatsoeverwhatsoever ,,,, aaaa beliefbeliefbeliefbelief isisisis createdcreatedcreatedcreated inininin thethethethe mindsmindsmindsminds ofofofofconsumersconsumersconsumersconsumers asasasas totototo somesomesomesome qualityqualityqualityquality orororor utilityutilityutilityutility ofofofof goodsgoodsgoodsgoods orororor services,services,services,services, andandandand thethethethegoodsgoodsgoodsgoods orororor servicesservicesservicesservices actuallyactuallyactuallyactually fallfallfallfall shortshortshortshort ofofofof thosethosethosethose beliefs,beliefs,beliefs,beliefs, thethethethe methodmethodmethodmethod
adoptedadoptedadoptedadopted isisisis anananan unfairunfairunfairunfair tradetradetradetrade practicepracticepracticepractice....
36363636 AAAA ((((1111)))) :::: FalseFalseFalseFalse representationrepresentationrepresentationrepresentation ofofofof productsproductsproductsproducts orororor services,services,services,services, includingincludingincludingincluding
falsefalsefalsefalse description,description,description,description, guarantee,guarantee,guarantee,guarantee, warrantywarrantywarrantywarranty orororor performanceperformanceperformanceperformance ofofofof aaaa
productproductproductproduct orororor serv ceserv ceserv ceserv ce....
36363636 AAAA ((((2222)))) :::: AdvertisementAdvertisementAdvertisementAdvertisement ofofofof falsefalsefalsefalse bargainbargainbargainbargain pricepricepriceprice....
36363636 AAAA ((((3333)))) :::: Contest,Contest,Contest,Contest, lotteries,lotteries,lotteries,lotteries, gamegamegamegame ofofofof chancechancechancechance orororor skillskillskillskill forforforfor promotionpromotionpromotionpromotion ofofofof
salesalesalesale....
36363636A(A(A(A(4444)))) :::: SaleSaleSaleSale ofofofof goodsgoodsgoodsgoods notnotnotnot inininin conformityconformityconformityconformity withwithwithwith safetysafetysafetysafety standardsstandardsstandardsstandardsprovidedprovidedprovidedprovided bybybyby thethethethe lawlawlawlaw....
36363636A(A(A(A(5555)))) :::: HoardingHoardingHoardingHoarding orororor destructiondestructiondestructiondestruction ofofofof goodsgoodsgoodsgoods orororor refusalrefusalrefusalrefusal totototo sellsellsellsell goodsgoodsgoodsgoods....
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
16/17
Sec.33 Agreement restricting sale or purchase
For tie up or full line sale Exclusive dealing agreement Collective agreement of price fixation nd tendering Discriminatory dealings
Tuesday, February 19, 2013PROF. MAYUR MALVIYA
Restrict output or supply Restrict employment of any method Exclude any person from trade association Eliminate competition Restrict procurement Collective bidding Declared by govt. as restrictive Any enforciation of the above
-
7/28/2019 2.Sale of Goods Act and Restrictive Trade Practices
17/17
Tuesday, February 19, 2013PROF. MAYUR MALVIYA