CONTRACTS OF SALE OF GOODSCONTRACTS OF SALE OF GOODS

ii--There must be two partiesThere must be two partiesiiii--The object must be transfer of The object must be transfer of ‘‘ propertyproperty’’iiiiii--The subject matter of the contract of sale The subject matter of the contract of sale must be must be ‘‘ GoodsGoods’’iviv--Consideration for sale of goods must be Consideration for sale of goods must be ‘‘moneymoney’’vv--A contract may be in writing or word of A contract may be in writing or word of mouth or partly bothmouth or partly bothvivi--Includes actual sale and agreement to Includes actual sale and agreement to sellsell

ii--Transfer of propertyTransfer of propertyiiii--Risk of LossRisk of Lossiiiiii--Nature of contractNature of contractiviv--Consequences of breachConsequences of breachvv--Right to resellRight to resellvivi--Insolvency of buyerInsolvency of buyerviivii--Insolvency of sellerInsolvency of sellerviiiviii--Nature of rightsNature of rights

11--Ownership of goods is transferred from Ownership of goods is transferred from seller to buyerseller to buyer22--The buyer may use the goods as he likesThe buyer may use the goods as he likes33--There is no return of goods ,unless there There is no return of goods ,unless there is a breachis a breach44--The consideration is the priceThe consideration is the price55--Any charges to be paid either way does Any charges to be paid either way does not arisenot arise

11--There is transfer of possession ,not There is transfer of possession ,not ownershipownership22--A bailee can use the goods only according A bailee can use the goods only according to the directions of the bailorto the directions of the bailor33--The goods are retuned after the The goods are retuned after the accomplishment of purposeaccomplishment of purpose44--The consideration is an undertakingThe consideration is an undertaking55--The bailor has to repay the charges which The bailor has to repay the charges which the bailee has incurred.the bailee has incurred.

11--Transfer of property in the goodsTransfer of property in the goods22--Position of buyerPosition of buyer33--Insolvency of buyerInsolvency of buyer44--Passing of the title of the buyerPassing of the title of the buyer55--Sales TaxSales Tax66--Nature of the contractNature of the contract77--Termination of contractTermination of contract88--Instalments paidInstalments paid99-- Governing actGoverning act1010--Taking back possession of GoodsTaking back possession of Goods

11-- Possession or AcquisitionPossession or Acquisition22--CertainityCertainity33--Control over factors of ProductionControl over factors of Production

Section 2(10) of the Act defines Section 2(10) of the Act defines ‘‘ priceprice’’ as as the the ‘‘ money consideration for a sale of money consideration for a sale of goodsgoods’’Mode of Fixing priceMode of Fixing priceEarnest Money or depositEarnest Money or depositStipulation as timeStipulation as time

11-- Bill of LadingBill of Lading22--Dock WarrantDock Warrant33--Warehouse keeperWarehouse keeper’’s certificates certificate44--Railway receiptRailway receipt55--Delivery OrderDelivery Order

11--Term regarding goods forming part of the Term regarding goods forming part of the contract of salecontract of sale22--Essential to the main purpose of saleEssential to the main purpose of sale33--The breach of condition gives the The breach of condition gives the aggrieved party the right to treat the contract aggrieved party the right to treat the contract as repudiated, and also entitles him to claim as repudiated, and also entitles him to claim damagesdamages44--If contract of sale is broken ,the aggrieved If contract of sale is broken ,the aggrieved party can treat the contract as repudiated party can treat the contract as repudiated and reject the goodsand reject the goods

11--It is stipulation of term regarding goods It is stipulation of term regarding goods forming part of the contract of saleforming part of the contract of sale22--A term which is not essential to the main A term which is not essential to the main purpose of the contractpurpose of the contract33--Gives the aggrieved party only the right to Gives the aggrieved party only the right to sue for damagessue for damages

11--Relation to main purposeRelation to main purpose22--Rights of aggrieved partyRights of aggrieved party33--Treating condition as warrantyTreating condition as warranty44--Legal effects of breachLegal effects of breach55--Discharge on breachDischarge on breach

11--Relation to main purposeRelation to main purpose22--Rights of Aggrieved partyRights of Aggrieved party33--Treating condition as Treating condition as ‘‘ WarrantyWarranty’’44--Legal effects of breachLegal effects of breach55--Discharge on breachDischarge on breach

ii-- Conditions as to TitleConditions as to Titleiiii--Condition in case of sale by descriptionCondition in case of sale by descriptioniiiiii--Condition in case of sale by sampleCondition in case of sale by sampleiviv--Condition in case of sale by description Condition in case of sale by description and sampleand samplevv--Condition as to quality or fitnessCondition as to quality or fitnessvivi--Condition as to wholesomenessCondition as to wholesomenessviivii--Condition implied by customCondition implied by custom

ii--Warranties as to quit possessionWarranties as to quit possessioniiii--Warranty of freedom from encumbrancesWarranty of freedom from encumbrancesiiiiii--Warranty as to quality or fitness for a Warranty as to quality or fitness for a particular purposeparticular purposeiviv--Disclosures of dangerous nature of goodsDisclosures of dangerous nature of goods

11-- Conditions as the titleConditions as the title22--Sale by DescriptionSale by Description33-- Sale by SampleSale by Sample44-- Sale by sample as well as by descriptionSale by sample as well as by description55--Conditions as to fitness or qualityConditions as to fitness or quality66--Condition as to merchantabilityCondition as to merchantability77--Condition as to wholesomeCondition as to wholesome88--Condition implied by custom or usage of Condition implied by custom or usage of tradetrade

11--Quiet possessionQuiet possession22--Freedom from encumbranceFreedom from encumbrance33--Disclosure of dangerous nature of goodsDisclosure of dangerous nature of goods

Let the Buyer aware Let the Buyer aware ––A buyer purchases A buyer purchases the goods at his own risk provided the seller the goods at his own risk provided the seller is acting within the Lawis acting within the LawSubject to the provisions of this Act and any Subject to the provisions of this Act and any other law for the time being in force ,there is other law for the time being in force ,there is no implied warranty or conditions as the no implied warranty or conditions as the quality or fitness for any particular purpose quality or fitness for any particular purpose of goods supplied under a contract of saleof goods supplied under a contract of sale

11--Conditions as to quality of fitness for Conditions as to quality of fitness for buyerbuyer’’s purposes purpose22--Conditions as to merchantabilityConditions as to merchantability33--Conditions as to wholesomenessConditions as to wholesomeness44--Conditions implied by customsConditions implied by customs55--Sale under a patent or trade nameSale under a patent or trade name66--Consent obtained by fraudConsent obtained by fraud

The performance of the respective duties of The performance of the respective duties of the seller and the buyer as per the terms of the seller and the buyer as per the terms of the contractthe contractii--SellerSeller’’s duty to deliver the goodss duty to deliver the goodsiiii--BuyerBuyer’’s duty to accept the goods and pay s duty to accept the goods and pay the pricethe price

‘‘ DeliveryDelivery’’ means voluntary transfer of means voluntary transfer of possession from one person to anotherpossession from one person to anotherMay be May be -- ActualActual--SymbolicSymbolic--ConstructiveConstructive

11-- Mode of DeliveryMode of Delivery22-- Delivery and payment are concurrent Delivery and payment are concurrent conditionsconditions33--Effect of part deliveryEffect of part delivery44--Buyer to apply for deliveryBuyer to apply for delivery55--Place of deliveryPlace of delivery66--Time of deliveryTime of delivery77--Mannaer of deliveryMannaer of delivery88--Expenses of deliveryExpenses of delivery

99-- Delivery of wrong quantityDelivery of wrong quantity1010--Instalment deliveriesInstalment deliveries1111--Delivery to carrier or wharfingerDelivery to carrier or wharfinger1212--Goods delivered at a distant placeGoods delivered at a distant place1313--Examining the goods on deliveryExamining the goods on delivery1414--When acceptance is complete on When acceptance is complete on deliverydelivery1515--Liability of buyer for neglecting or Liability of buyer for neglecting or refusing delivery of goodsrefusing delivery of goods

11-- Risk follows ownershipRisk follows ownership22--Owner to take action against third partiesOwner to take action against third parties33-- Insolvency of the seller or the buyerInsolvency of the seller or the buyer44--SellerSeller’’s right to sue for prices right to sue for price

11-- Goods must be ascertained Goods must be ascertained 22--Intention of the partiesIntention of the partiesPassing of property is dependent on the Passing of property is dependent on the terms of contract. Parties to such contracts terms of contract. Parties to such contracts have evolved definite models for carriage of have evolved definite models for carriage of goodsgoods

11-- Passing of property at the time of contractPassing of property at the time of contract22--Passing of property delayed beyond the Passing of property delayed beyond the date of contractdate of contract

ii--Goods not in a deliverable stateGoods not in a deliverable stateiiii--When the price of goods is to be When the price of goods is to be

ascertainedascertained

ii--When he signifies his approval to the sellerWhen he signifies his approval to the selleriiii--When he does any other act adopting the When he does any other act adopting the transactiontransactioniiiiii--If he does not signify his approval to the If he does not signify his approval to the seller but retain the goods without giving seller but retain the goods without giving notice of rejection , beyond the time fixed for notice of rejection , beyond the time fixed for the return of goodsthe return of goods

11-- EstoppelEstoppel22--Sale by a Mercantile AgentSale by a Mercantile Agent33--Sale by one of several joint ownersSale by one of several joint owners44--Sale by a person in possession of goods Sale by a person in possession of goods under a voidable contractunder a voidable contract55--Sale by seller in possession after saleSale by seller in possession after sale66--Sale by unpaid sellerSale by unpaid seller

11-- Sale by finder of lost goodsSale by finder of lost goods22--Sale by Pawnee Sale by Pawnee pledgeepledgee33-- Sale by official assigneeSale by official assignee44--Sale by any liquidator of a companySale by any liquidator of a company55--Execution salesExecution sales66-- Sale by Executors and AdministratorsSale by Executors and Administrators77--Purchase in Market OvertPurchase in Market Overt88--Under the negotiable Instruments actUnder the negotiable Instruments act

11--Have delivery of goodsHave delivery of goods22--Right to reject the goodsRight to reject the goods33-- The buyer of goods is not bound to The buyer of goods is not bound to accept the delivery of goods in installmentsaccept the delivery of goods in installments44--Right to notice of InsuranceRight to notice of Insurance55--Right to examine the goods deliveredRight to examine the goods delivered66--Right to sue for breach of contractRight to sue for breach of contract

11--To take delivery of, and pay for goodsTo take delivery of, and pay for goods22--To apply for deliveryTo apply for delivery33--To demand delivery at a reasonable hourTo demand delivery at a reasonable hour44--To take risk of deteriorationTo take risk of deterioration55--Liability of buyer for neglecting or refusing Liability of buyer for neglecting or refusing delivery of goodsdelivery of goods66--Duty to accept installment delivery and Duty to accept installment delivery and pay for itpay for it

77--Duty to intimate the seller where he Duty to intimate the seller where he rejects the goodsrejects the goods88--Duty to pay damages for nonDuty to pay damages for non--acceptanceacceptance99--Deliver the goods to carrier or wharfingerDeliver the goods to carrier or wharfinger1010--Examine the goods deliveredExamine the goods delivered1111--Acceptance of the goods deliveredAcceptance of the goods delivered1212--Liability of buyer for refusing deliveryLiability of buyer for refusing delivery

11-- Suit for priceSuit for price22--Damages for nonDamages for non--acceptanceacceptance33--Damages for breach of contractDamages for breach of contract44--InterestInterest55--Special damagesSpecial damages

11-- Damages for nonDamages for non--deliverydelivery22--Specific performanceSpecific performance33--Remedy for breach of WarrantyRemedy for breach of Warranty44--Damages for breach of contractDamages for breach of contract55--InterestInterest66-- Special damagesSpecial damages

11-- When the whole of the price has not been When the whole of the price has not been paid or tenderedpaid or tendered22--When a bill of exchange or other When a bill of exchange or other negotiable instrument has been received as negotiable instrument has been received as conditional payment and conditions has not conditional payment and conditions has not been fulfilled by reason of the dishonor of been fulfilled by reason of the dishonor of the instrument or otherwisethe instrument or otherwise

11--When the property in the goods has When the property in the goods has passedpassed

ii--Right of LienRight of Lieniiii--Right of stoppage in transitRight of stoppage in transitiiiiii--Right of resaleRight of resale

22--When the property in the goods has When the property in the goods has not passednot passed

ii--Right of withholding deliveryRight of withholding deliveryiiii--Right of LienRight of Lieniiiiii--Right of stoppage in transitRight of stoppage in transit

ii-- Right to sue for priceRight to sue for price--When the property When the property in the goods has passed to the buyer and in the goods has passed to the buyer and the buyer refuses to paythe buyer refuses to payiiii--Right to sue for damagesRight to sue for damages--Where the Where the buyer wrongfully neglects or refuses to buyer wrongfully neglects or refuses to accept and pay for goodsaccept and pay for goodsiiiiii--Right to sue for interestRight to sue for interest--the court may the court may award interest as such rate as it thinks fitaward interest as such rate as it thinks fit

ii-- Unpaid sellerUnpaid seller’’s Liens Lien--iiii--Stoppage in transitStoppage in transitiiiiii--Right of resaleRight of resaleiviv--Right of withholding deliveryRight of withholding delivery

ii--No stipulation as to creditNo stipulation as to credit-- The unpaid The unpaid seller has a lien where the goods have been seller has a lien where the goods have been sold without any stipulationsold without any stipulationiiii--Sale on creditSale on credit--the unpaid seller has a lien the unpaid seller has a lien where the goods have been sold on credit where the goods have been sold on credit but the term of credit has expiredbut the term of credit has expirediiiiii--Insolvency of buyerInsolvency of buyer--The unpaid seller The unpaid seller has a lien where the buyer becomes has a lien where the buyer becomes insolventinsolvent

ii--Delivery to carrierDelivery to carrier--The unpaid seller The unpaid seller loses his lien when he delivers the goods to loses his lien when he delivers the goods to the carrier for the purpose of transmission to the carrier for the purpose of transmission to the buyerthe buyeriiii--Lawful possession by buyerLawful possession by buyer--The unpaid The unpaid seller loses his lien where the buyer or his seller loses his lien where the buyer or his agent lawfully obtains possession of goodsagent lawfully obtains possession of goodsiiiiii--WaiverWaiver--The unpaid seller loses his lien The unpaid seller loses his lien ,when he waves his lien expressly ,when he waves his lien expressly

ii--Goods care deemed to be in the course of Goods care deemed to be in the course of transittransitiiii--If the buyer or his agent in that behalf If the buyer or his agent in that behalf obtains delivery of the goods before their obtains delivery of the goods before their arrival at the destinationarrival at the destinationiiiiii--The Carrier or bailee acknowledges to the The Carrier or bailee acknowledges to the buyer that he holds goodsbuyer that he holds goodsiviv--If the goods are rejected by buyer and the If the goods are rejected by buyer and the carrier is in possession of goodscarrier is in possession of goods

vv--When the goods are delivered to a ship When the goods are delivered to a ship chartered by the buyer ,whether they are in chartered by the buyer ,whether they are in possession of the master as a carrierpossession of the master as a carriervivi--Where the carrier wrongfully, refuse to Where the carrier wrongfully, refuse to deliver the goods to the buyerdeliver the goods to the buyer\\agent in that agent in that behalf, the transit is deemed to be at an endbehalf, the transit is deemed to be at an endviivii--Where the part delivery of the goods has Where the part delivery of the goods has been made to the buyer been made to the buyer \\ agent in that agent in that behalf ,the remainder of the goods may be behalf ,the remainder of the goods may be stopped in transitstopped in transit

11-- Nature of rightNature of right22--Possession of goodsPossession of goods33--Commencement and endCommencement and end44--Insolvency of the buyerInsolvency of the buyer55--Mode of exercisingMode of exercising

ii-- When the goods are of perishable natureWhen the goods are of perishable nature, the unpaid seller may resell the goods , the unpaid seller may resell the goods without any notice to the buyer.without any notice to the buyer.When the unpaid seller has exercised right When the unpaid seller has exercised right of Lien , he has to give notice to the buyer of Lien , he has to give notice to the buyer for his intention to resellfor his intention to resell

11-- Suit for priceSuit for price22--Suit for damages for nonSuit for damages for non--acceptanceacceptance33--Repudition of contract before due dateRepudition of contract before due date44--Suit for interestSuit for interest

A A sale by auctionsale by auction is a public sale where is a public sale where different intending buyers try to outbid each different intending buyers try to outbid each other. The goods are ultimately sold to the other. The goods are ultimately sold to the highest bidder. The auctioneer who highest bidder. The auctioneer who conducts the auction is an agent of the conducts the auction is an agent of the sellersellerThe sale of Goods Act lays down various The sale of Goods Act lays down various rules in the cases of a sale by auctionrules in the cases of a sale by auction

This a contract for sale of goods to be This a contract for sale of goods to be delivered free on board a ship. The letter delivered free on board a ship. The letter F.O.B. stands for F.O.B. stands for ‘‘ free on boardfree on board’’ and word and word F.O.R. stands for Free on RailF.O.R. stands for Free on RailThere are various terms such as F.O.B There are various terms such as F.O.B ,F.O.R. ,C.I.F. , and C & F etc,F.O.R. ,C.I.F. , and C & F etc

ii--To load the sold goods safely on the ship To load the sold goods safely on the ship named by the buyernamed by the buyeriiii--The meet the expenses of Loading the The meet the expenses of Loading the goodsgoodsiiiiii--To enter into contract with the shipping To enter into contract with the shipping company for the transportation of goods and company for the transportation of goods and obtain a bill of Ladingobtain a bill of Ladingiviv--To deliver the bill of Lading to the buyerTo deliver the bill of Lading to the buyer

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