Sale of Goods Act, 1930 under the subject business laws

Sale of Goods Act, 1930

1. Sale of goods act,1930

2. Introduction (act 3 of 1930) Title of Act : Sale of Goods Act,1930 Extent of Act : Whole of India Commencement of Act : 1 st July,1930

3. A CONTRACT OF SALE u/s 4(1) Definition "A contract of sale of goods is a contract whereby the seller transfers or agree to transfer the property in goods to a buyer for a price ”

4. A Contract Where a Seller Transfers the ownership rights of goods to buyer Agrees to transfer the ownership rights of goods to buyer in future Absolute Sale Conditional Sale u/s 4(3) u/s 4(4)

5. To constitute a sale An agreement Competent Parties Purpose of contract is to transfer property in goods Transferred for a price in return

6. Essentials of COS A Valid Contract Two Parties Transfer of Property Subject Matter of Contract is “Goods” Price of Goods Express or Implied Performance by Parties

7. a valid contract A COS must fulfill all the essentials of a valid contract u/s 10 of ICA,1872. It consists of: Lawful offer Lawful acceptance Competent parties Free consent Lawful consideration Legality of object

8. Two parties There must be two distinct parties to a contract of sale, viz., a buyer and a seller . A person cannot buy his own goods. There may be a contract of sale between one “Part-owner” and another.

9. transfer of property “ Property ” here means “ Ownership ”. A mere transfer of possession of goods cannot be termed as sale At the time of making the contract At Future Time Sale Agreement to Sell A transfer of property may take place

10. “goods” u/s 2(7) The subject-matter of contract of sale must be “goods”. “Goods” means every kind of movable property . Goods do not include : “ Money ” means current money. “ Actionable claims ” means claims which can be enforced by a legal action or suit. e.g., account book or Bahi , bill of exchange or a promissory note. “ Immovable Property ” These cannot be sold but could assigned as per the “Transfer of property Act, 1982”.

11. price of goods u/s 2(10) The consideration for a contract of sale must be money consideration called the “ price ”. Modes of fixing the price ( Section 9 ) Price expressly stated in the contract Fixed according to agreed manner Determined by course of dealing Reasonable price Valuation by third party

12. a cos could be express or implied u/s 5 COS Express Implied

13. Performance by parties It is upto the parties to the COS to decide upon the performance by them. The parties may decide: To make delivery & payment happen simultaneously. To make payment on instalments . To deliver goods in future. To postpone both the delivery & payment in future.

14. Basis Sale/Absolute Sale Agreement to Sell/Conditional Sale 1) Meaning Where the seller tranfers the property in goods to buyer for a price Where the seller agrees to tranfer the property in goods to buyer for a price at some future date 2) Nature of Contract An executed contract An executory contract. 3) Transfer of Property Passes from seller to buyer immediately. Passes from seller to buyer at some future date 4) Risk of Loss Risk of loss falls on the buyer Risk of loss falls on a seller 5) Breach by Buyer Seller can sue for the price & claim damages Seller can sue for the damages only Difference between Sale & Agreement to Sell

15. Difference between Sale & Agreement to Sell 6) Breach by Seller Buyer can sue for possession, ownership along with claim for damages Buyer can only sue the seller for the damages 7) Insolvency of Seller Contract is performed by the official assignee of Seller Buyer can claim damages but not the performance by seller 8) Insolvency of Buyer Contract is performed by the official assignee of Buyer Damages can be claimed 9) Rights in REM & PERSONAM Buyer gets the RIGHTS in REM Buyer gets the Rights in PERSONAM 10) Rights to Re-Sell Seller can not resell Seller can resell

16. Goods Existing Goods Future Goods Contingent Goods 1) Specific Goods 2) Ascertained Goods 3) Unascertained Goods Goods existing at the time time of making contract & owned by seller Goods to be yet acquired or produced in future after making the COS Goods the acquisition of which depends on a contingency