law sale of goods act
TRANSCRIPT
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Sale of goods is like any other contract. therefore all the general provisions of the contract act is also applicable.whatare they?
THE SELLER & BUYER SHOULD BE COMPETENT TO CONTRACT.
CONSENSUS AD ITEM IS AN ESSENTIAL CONDITION.IT IS A
CONSESUAL CONTRACT
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DEFINE A CONTRACT OF SALE.
SALE OF GOODS IS A CONTRACT WHERE BY A SELLER TRANSFERS
OR AGREES TO TRANFER THE PROPERTYINTHE GOODS TO THE
BUYER FOR A PRICE.
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STUDENTS OF A HOSTEL TAKE MEALS IN THE MESS RUN BY THEM ON COOP LINES .IS THIS A SALE?
THE STUDENTS ARE THE UNDIVIDED JOINT OWNERS OF THE MEALS THEY SHARE.IT IS
NOT A SALE.
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JOINT OWNER & PART OWNER WHAT IS THE DISTINCTION ?
A PART OWNER CAN SELL HIS SHARE TO ANOTHER PARTOWNER WHERE AS A
JOINT OWNER CANNOT SELL TO ANOTHER JOINT OWNER .BECAUSE
HE HAS EQUAL RIGHT OVER THE PROPERTY WHICH IS NOT DIVISIBLE
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A PERSON CANNOT BUY HIS OWN GOODS – DO U AGREE? IS THERE ANY EXCEPTIONS?
HOWEVER IN “MOORE VS SINGER MANUFACTURING COMPANY A
PERSON IT WAS HELD THAT HE MAY BUY HIS OWN GOODS SOLD IN
EXECUTION OF A DEGREE TO AVOID TRANFER OF OWNERSHIP TO SOME
ONE ELSE.
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“PROPERTY IN THE GOODS” IS GOODS DIFFERENT FROM PROPERTY ?
OWNERSHIP GIVES U A BUNCH OF RIGHTS.RIGHT TO POSSESS
ENJOY , HIRE ,MORTGAGE , SELL AND SO ON.
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WHAT IS GENERAL PROPERTY & SPECIAL PROPERTY IN THE GOODS?
PAWNOR HAS GENERAL PROPERTY .THE PAWNEE HAS A SPECIAL
PROPERTY,INTEREST INTHEGOODS TO THE AMOUNT OF ADVANCE HE
HASMADE.
A MECHANIC ‘ RIGHT IS LIMITED TO THE EXTENT OF HIS REPAIR CHARGES.
ONE OF THE FOLLOWING IS NOT GOODS UNDER THE SALE OF GOODS ACT
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THINGS ATTACHED TO THE LAND AGREED TO be SEVERED
CUT GRASS
GROWING CROPS
STOCK & SHARES
ACTIONABLE CLAIMS & MONEY
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WHAT IS ACTIONABLE CLAIM? GIVE EXAMPLE.
BOOK DEBTS.BOOK BEDTS CANNOT BE SOLD IT CAN ONLY
BE ASSIGNED.
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CAN MONEY BE CONSIDERED AS GOODS?
HOW EVER VERY OLD COINS MAY BE BOUGHT AND SOLD AS
CURIOS
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What is consideration in a contract of sale?
Goods exchanged for goods is not covered by sale of goods act. it
is governed by transfer of properties act.
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Goods sold partly for cash & partly for money will it come under the purview?
Comes under the sale of goods act .ref:
(aldridge vs Johnson)
Distinguish between “sale” & agreement to sell.• Sale is an executed contract
• Agreement to sell is an executory contract
• Is a conditional sale.
• Example : 1)on jan 2011 x agrees to sell y his scooter for 25,000/= 2)b agrees to buy ‘a’s car for Rs 100000/= provided “c”stands surety.
• It becomes a sale when the time lapses or when the condition is fulfilled
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Explain the concept of “jus in rem” & “jus in personam”• Jus in rem: gives right to the buyer to enjoy the
goods as against the whole world
• Jus in personam : gives aright to the buyer or seller against the other for any default.
• Sale gives ,”jus in rem”
• Agreement to sell only , “jus in personam”
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State the 6 points of distinction between “sale” and “agreement to sell”• 1) property in the goods
• 2)risk of loss
• 3)consequences of breach
• 4)right of resale
• 5)insolvency of buyer
• 6) insolvency of seller
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risk
• Risk of loss in the case of sale is that of buyer
• And in the case of agreement to sell with the seller
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breach
• In the case of sale, the can sue the buyer for price
• And in the case of agreement to sell only damages.
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Right of resale
• In the case of sale,no resale
• And in the case of agreement to sell he can resell .
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Points of distinction
Sale Hire purchase
Property in the goods
Passes immediately Only when last instalment is received
Position Owner Bailee till last inst.
Termination Bound to pay the price
Return the goods no liab for future instl.
Risk/insolvency Owner Takes back the goods
1)A car bearing a particular registration no. 2)milk that a cow may yield during the year 3)agrees to sell
25 bales of egyptian cotton on arrival of the ship
Existing goods
• Specific &ascertained
• unascertained
Future goods
• Results only
• In agreement to sell
Contingent goods
• Only an agreement
• To sell
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A gives cloth to the tailor to make a suit,the stitching charges are agreed at Rs 1000/= on the appointed date for delivery of the suit A pays Rs 1000/=asks for the suit.though the suit is ready the tailor refuses deliver the suit till his previous due of Rs 500/ is paid
A right of particular lien can be excised only in respect of which
the charge is due
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A murphy dealer sells a radio to x for Rs 1000/=on the terms that he will pay Rs 500/ immediately and the balance in 2 instalments.It was further agreed in case of complaint the customer should return the radio in a week but not later.the customer defaults in final
instalment.can the dealer take back the radio?
It is a credit sale not hire purchase.
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A ,dealer in diamond gives a diamond to x on sale or return basis for Rs 10,000/=.on the same day x gives it to y on sale or return basis.From him the they are
lost.the dealer A claims payment from x. Is a correct?
By tranfering the diamonds further x has adopted the
transaction.
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Readers digest subscriber from delhi wrote to digest mumbai to send certain books by parcel.accordinglythey send the books.It never reached the subscriber.canreaders digest recover the cost from the subscriber?
On unconditional delivery to the post office buyer becomes the
owner.thereafter he should bear the loss
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B sold parley to x by sample.delivery to be made at mumbai terminal.x received the parley and sold to y at the same terminal after inspecting the sample.y rejected the parley as not being according to sample.thenxrejected the goods and refused to pay.willx succeed ?
On receipt and inspection, by resellingit to y, x has accepted
the goods ( constructively)therefore he will
notsucceed.
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At an auction sale A makes the highest bid of Rs 600/=for a typewriter but withdrew the offer before the fall of the hammer.but one of the conditions of the auction is that , “bidding once made shall not be withdrawn.”.A was sued fore the price.decide the case.
Auctioneer has a right to make his own terms & conditions
(the coffee board vs famous coffee & tea works AIR
1965.MAD.14)
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A BILL IS DRAWN PAYABLE AT 403, KRISHNA REGENCY,SECTOR -30,VASHI.NAVIMUMBAI.It did not mention the name. x resident of the above flat accepted it. Is the bill valid?
The drawee may be named or otherwise indicated in the bill
with reasonable certainty.
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A DRAWs a bill on x a fictitious person and negotiates to Z.not finding x, Z treats it as a promisory note.. Is the action of Z valid?
The drawee may be named or otherwise indicated in the bill
with reasonable certainty.
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