business law ppt.ppt

Business law

1. UNIT II –SALE OF
GOODS ACT
BY TARANJOTSINGH|3186
ISHARSINGH |3122
GURSHANTSINGH|3161

2. CLASSIFICATION OF GOODS
oExisting goods
(a) Specific goods
(b) Ascertained goods
(c) Unascertained goods
oFuture goods
oContingent goods

3. EXISTING GOODS
Goods which physically exist and are owned and possessed by the seller at the time
of formation of contract of sale are called existing goods. Existing goods may be:
(a)SPECIFIC GOODS -The goods which are identified and agreed upon at the time of
making of contract of sale are called specific goods.
EXAMPLE-A visits honda city car showroom where six different models are displayed and he
agrees to buy white colour accord model of Hondacity car. This is a contract for sale of specific
goods.
(b) ASCERTAINED GOODS -The goods which are identified and agreed upon
subsequent to formation of contract of sale are ascertained goods.
EXAMPLE-If, after having made a contract for purchase of car, A identifies a particular model of
car. The car so obtained become ascertained.

4. (c) UNASCERTAINED GOODS –Goods which are not identified but are agreed upon
at
the time of formation of contract of sale are called unascertained goods.
EXAMPLE -Sale of one car of a particular model out of 6 cars is a sale of unascertained goods
presuming the car has not been identified.
FUTURE GOODS
Future goods can be defined as the goods to be manufactured or produced or
acquired by the seller after making of the contract. The contract for the sale of future
goods will never have the actual sale in it, it will always be an agreement to sell.
EXAMPLE –A agrees to sell all the apples which will be grown in his garden next year. This is an
agreement to sell future goods as apples are not in existence.

5. CONTINGENT GOODS
There may be a contract for sale of goods the acquisition of which by the seller depends
upon a contingency which may or may not happen. In such a case, goods sold are called
contingent goods.
EXAMPLE –A, a farmer, agrees to sell, mangoes provided there is good amount of rain during
season. This is a contract for sale of contingent goods and the contract will not be enforceable if
sufficient rain does not happen.

6. THE EFFECT OF PERISHING
SPECIFIC GOODS
SPECIFIC GOODS: THERE ARE THE GOODS IDENTIFIED AND AGREED UPON A T THE
TIME A CONTRACT OF A SALE IS MADE. FOR EXAMPLE, A PARTICULAR RIN G, NECKLACE
OR CAR.
DESTRUCTION OF GOODS: SECTION 7 & 8 DEAL WITH THE EFFECT OF DEST RUCTION OF
GOODS IN CASE OF CONTRACT OF SALE AND IN CASE OF AN ARRANGEMENT TO SELL
RESPECTIVELY.
(SECTION-7) GOODS PERISHING BEFORE MAKING OF CONTRACT
(SECTION-8) GOODS PERISHING BEFORE SALE BUT AFTER AGREEMENT TO S ELL

7. SECTION -7)GOODS PERISHING BEFORE
MAKING OF A CONTRACT:
Where there is a contract for the sale of specific goods, the contact is VOID if the
goods without the knowledge of the seller have, at the time when the contract was
made, perished or become so damaged as no longer to answer to their description in
the contract.
SECTION -7 lays down that a contract of sale is VOID if the following three
conditions are fulfilled:
a)There must be a contract of sale of specific goods.
b)The goods must have perished or become so damaged that they no longer answer to
their description in the contract
c)The seller must not be aware of such destruction of the goods

8. EXAMPLE:A sold 100 bags of rice lying in his
warehouse to B. Unknown to A, all the 100 bags were
stolen before the contract was entered into. The
contract will thus be considered VOID. Similarly, if the
rice was spoiled due to heavy rainfall –it no longer
answers to its description and the sale will be VOID.
Incase just 50 bags were stolen, A cannot compel B to
accept the remaining 50 bags because the contract was
specific and indivisible.

9. SECTION –8)GOODS PERISHING BEFORE SALE BUT
AFTER AGREEMENT TO SELL:
Where there is agreement to sell specific good, and
subsequently the goods without any fault on the part of
the seller or buyer perish or become so damaged as no
longer to answer to their description in the agreement
before the risk passes to the buyer, the agreement is
thereby avoided.
An agreement to sell, under section 8, will become
VOID if the following four conditions are fulfilled:

10. a)There must be a agreement to sell a specific good.
b)The good must have perished or become so damaged that they no
longer answer to their description in the agreement.
c)There must be no fault of the buyer or the seller.
d)The risk must not have passed to the buyer-the goods must have
perished before the agreement to sell became a sale.
EXAMPLE: A agreed to sell his horse to B at the expiry of 7 days.
The horse was delivered on trial for 7 days. Without any fault of the
buyer or the seller the horse died on the third day. It was held that the
agreement became VOID and A could not recover the price from B.
NOTE* SECTION 7 & 8 ARE APPLICAPLE ONLY TO SPECIFIC GOODS AND
NOT TO UNASCERTAINED GOODS ARE DESTROYED EITHER BEFORE
MAKING AGREEMENT , THE CONTRACT WILL NOT BECOME VOID.



11. STIPULATION AS TO TIME
Meaning of stipulation as to time –the maximum time to provide the
service by the designated person .
For example –if you run a fencing company and you offer a sale ,you must
assure that your customer should get his or her product by a certain date and
time

12. STIPULATIONS AS TO TIME
FALLS UNDER TWO CATEGORIES
1. STIPULATION RELATING TO THE TIME OF PAYMENT OF PRICE
2. STIPLUTION RELATING TO TIME OF DELIVERY OF GOODS

13. STIPULATION RELATING TO THE
TIME OF THE PAYMENT OF PRICE
STIPULATION AS TO TIME FOR PAYMENT OF PRICE ARE NOT
REGARDED AS ESSENCE OF CONTRACT , UNLESS A DIFFERENT
INTENTIONS APPEARS FROM THE TERMS OF THE CONTRACT

14. STIPULATION RELATING TO THE
TIME
OF DELIVERY OF GOODS
STIPULATION RELATING TO THE TIME OF DELIVERY OF GOODS IS
REGARGDED AS THE ESSENCE OF CONTRACT .