644852000-Sales-of-goods-Act-1930-1-ppt.ppt

Sales of Goods Acts

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THE SALES OF GOODS ACT,
1930

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THE ACT
•In1930,Sec.76to123ofIndianContractAct
weretakenoutandaseparateactwascreated
thatistheIndianSaleofGoodsAct,1930.It
cameintoforceon1
st
July,1930.Witheffectfrom
22
nd
September1963,thewordIndianwasalso
removed.Now,thepresentActiscalled‘TheSale
ofGoodsAct,1930’.ThisActextendstowholeof
IndiaexceptthestateofJammu&Kashmir.

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Meaning
•Accordingtosec.4(1)oftheSaleofGoods
Act,1930,“contractofsaleofgoodsisa
contractwherebythesellertransfersor
agreestotransferthepropertyingoodstothe
buyerforaprice.”
•Itincludesbothasaleaswellasan
agreementtosell.

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Essential elements of contract of sale
•Seller & buyer
•Goods
•Transfer of property
•Price
•Essential elements of valid contract

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SELLER & BUYER
•Asalehastobebilateralbecausethepropertyin
goodshastopassfromonepersontoanother.
Thesellerandbuyermustbedifferentpersons.
Apersoncannotbuyhisowngoods.However,a
pert-ownermayselltoanotherpart-owner.

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GOODS
•Sec.2(7).‘Goodsmeanseverykindof
movablepropertyotherthanpropertyof
actionableclaimsandmoney,andincludes
stockandshares,growingcrops,grass,and
thingsattachedtoorformingpartoftheland
whichareagreedtobeseveredbeforesaleor
undercontractofsale.’

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Classification of goods
•Existing Goods: Are those goods which are
owned or possessed by the seller at the time of
the contract
•Specific or Ascertained goods:Means goods identified
and agreed upon at the time of a contract of sale is made
•Goods are said to be ascertained when out of a mass of
unascertained goods, the quantity extracted for is
identified and set aside for a given contract.
•Unascertained Goods:These are the goods which are
not identified and agreed upon at the time when a
contract is made.

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•FutureGoods:meansgoodstobe
manufactured,orproducedoracquiredby
theselleraftermakingofthecontractofsale.
•ContingentGoods:Thesearethegoodsthe
acquisitionofwhichbythesellerdepends
uponacontingencywhichmayormaynot
happen.Contingentgoodsisapartoffuture
good.

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Transfer of property
•Propertymeansgeneralpropertyingoodsand
notmerelyaspecialpropertyingoods.
Generalpropertyingoodsmeansownershipof
thegoods.Specialpropertyingoodsmeans
possessionofgoods.Theremustbeeithera
transferofownershipofgoodsoran
agreementtotransfertheownershipofgoods.

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Price
•Theconsiderationinacontractofsaleshas
necessarilytobemoney.However,the
considerationcouldbepartlyinmoneyand
partlyingoods
•Differentcasesofconsiderationthatdonot
amounttosale:
•Barter
•Gift
•Some act in return of goods

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Essential elements of a valid contract
•A contract to sale must conform to all the other
essentials of a valid contract.
•Offer and acceptance
•Legal consideration
•Capacity to contract
•Intention to create legal relations
•Free consent
•Certainty and possibility of performance
•Lawful object
•Legal formalities

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Absolute or conditional
•Acontractofsalemaybeabsoluteor
conditionalaccordingtothedesireofthe
buyerandtheseller.

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Sale & Agreement to sell
•Whereunderacontractofsale,theproperty
inthegoodsistransferredfromthesellerto
thebuyer,itiscalledasale.
•Agreementtosellmeansacontractofsale
underwhichthetransferofpropertyingoods
takesplaceatafuturedataorsubjectto
someconditionsthereaftertobefulfilled.