Download - 8th April 2010(Law)
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EXPLAIN THE INGREDIENTS OF
CONTRACT OF SALE????
WHAT ARE THE TYPES OF IMPLIED
CONDITIONS AND WARRANTIES???
Made by :
YAMINI BANSAL(47)
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CONTRACT OF SALE
Acc. To Sec.4(1)
A contract of sale of goods is a contract
whereby the seller transfers or agrees to
transfer the property in goods to the buyer fora price.
There may be a contract of sale between one
part owner and another.
A contract of sale may be absolute or
conditional depending upon the desire of
contracting parties .
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ESSENTIALS OF CONTRACT OF SALE
Two parties
Transfer ofOwnership
Goods
Price
All essentials of valid contract
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INGREDIENTS
Sale :- When property is transferred from seller
to buyer at the time of formation of contract,
an absolute sale occurs.
Agreement to sell :-When property in the goods
is to be transferred at somefuture date and not
at the time of contract, the contract of sale is
termed as an agreement to sell.
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POINTS OF DISTINCTION
SALE VS AGREEMENT TO SELL
Nature ofContract
Nature ofrights ofbuyer
Consequences ofbreach by buyer
Risk ofloss
Insolvency of the buyer
Insolvency of the seller
Consequences in case ofresale
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DISTINGUISH BETWEEN
Its an executed
(absolute) contract. Creates jus in rem
i.e.gives the rights to
buyers to claim the
goods as against
anybody who disturbstheir rights to use the
goods.
Its an executory
(implies a condition)contract.
Creates jus in
personam i.e. right of
either party against
each other for anydefault in fulfilling its
part of agreement.
SALE AGREEMENTTOSELL
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CONTD.
Ifbuyer refuses to
accept the goods &pay the price , the
seller may sue
him/her for the price.
In this if there is any
damage to goods itfalls on the buyer
In this case the seller
can sue for damages.
In this case the loss
falls on the selleralthough the goods
are with buyer.
SALE AGREEMENTTOSELL
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CONTD.
If the seller becomes
insolvent while the
goods are with him , the
buyer is entitled to
recover the goods.
If the buyer becomes
insolvent the seller
must deliver the goods.
In this case the buyer
cant claim for thegoods even if he has
paid the price . He can
only claim ratable
dividend for the
money paid. In this case the seller
may refuse to deliver
the goods.
SALE AGREEMENTTOSELL
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CONDITIONS &WARRANTIES
Acc to sec 12(1) Astipulation in a contract of
sale with reference to goods which are subject
matter there of, may be a condition or a
warranty.
These stipulations can be of two types
1) Conditions
2) Warranties
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Under sec 12(2) Acondition is a stipulation
essential to the main purpose of the
contract, the breach of which gives rise to a
right to treat the contract as repudiated.
Under sec 12(3) Awarranty is a stipulation
collateral to the main purpose of the
contract, the breach of which gives rise to a
claim for damages but not to a right to reject
the goods and treat the contract as repudiated.
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TYPES OF IMPLIED CONDITIONS
Condition as to title [sec 14(a)]
Condition as to description [sec 15]
Condition as to sample [ sec 17(2)]
Condition as to sample as well as description[sec 17(2)(a)]
Condition as to quality or fitness [ sec 16(1)]
Condition as to merchantability [ sec 16(2)]
Condition as to wholesomeness
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TYPES OF IMPLIED WARRANTIES
Warranty as to quiet possession [Sec 14(b)]
Warranty against encumbrances [Sec 14(c)]
Warranty to disclose the dangerous nature of
goods.
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THANK YOU!!!!!!!