THE SALE OF GOODS ACT 1930 (BBA students

This Ppt discusses the provisions of sale of goods act 1930 for BBA students.

1. THE SALE OF GOODS ACT 1930 DR. DEEKSHA TEWARI

2. BACKGROUND SECTION 76-123 INDIAN CONTRACT ACT, 1872 THE SALE OF GOODS ACT,1930

3. SALES PITCH: https://youtu.be/hrwtlSDzQHM?si=u3nDe7uTLfqSakbh BUYER SELLER MONEY GOODS DELIVER AGENT

4. INTRODUCTION It came into force on 1 July, 1930 It extends to the whole of India General Provision of the Indian Contract act, 1872 apply to contract of sale of goods

5. Definitions Buyer and Seller (section 2) section 2(13) section 2(1) Seller Buyer sells or agrees to sell Buy or agrees to Buy

6. Goods Defined Goods : Movable goods included( Tangible and Intangible) but Immovable goods not included Exceptions Actionable Claim Money in Circulation 3. Also Includes Stocks and shares Growing Crops Grass and Things attached to or forming part of land which agreed to be severed

7. Types of Goods Existing Goods – Existing at the time of contract. There are three types of existing goods Specified goods: identified at the time of contract Ascertained goods : This type of goods not defined in act but judicially interpreted (goods identified after contract or selected from lot. Unascertained goods: not specifically identified at the time of contract (defined only by description or sample Future Goods : Goods Manufactured to be or after contract Contingent Goods

8. Delivery section 2(2)b Seller Voluntary transfer of possession Buyer from one person to another

9. Forms of Delivery Actual Delivery : Goods physically delivered Constructive Delivery Symbolic delivery

10. Document of title of goods section 2(4) Bill of landing Dock warrant Warehouse keeperls certificate Wharfingers certificate Railway receipt Multimodal transfer document

11. Quality of Goods section 2(12) State or Condition of goods

12. Sale and Agreement to Sell (Section 4) Sale : https://youtube.com/shorts/pofBYoRD-VQ?si=GWBz5cLLvn29YPfp Agreement to sell: https://youtu.be/yg0tGG54rTM?si=RS9mClLN8SPEHN7Z SALE A PROPERTY TRANSFER B TIME ELOPED CONDITION SATISFIED AGREEMENT TO SELL A PROPERTY TRANSFER IN FUTURE B

13. Sale and Agreement to Sell section 4 The following elements must co-exist so as to constitute a contract of sale of goods under the Sale of Goods act 1930 There must be atleast two parties seller and buyer and two must be different persons. A person cannot be both a seller and buyer. The subject matter of a contract must necessarily be goods covering only movable property. It may be either existing goods, owned or possessed by the seller or future goods. A price in money (not in kind) should be paid or promised. But there is nothing to prevent the consideration from being partly in money and partly in kind. A transfer of property in goods from seller to the buyer must take place. The contract of sale is made by an offer to buy or sell goods for a price by one party and the acceptance of such offer by other.

14. Sale and Agreement to Sell section 4 5. A contract of sale may be absolute or conditional. 6. All other essential elements of a valid contract must be present in the contract of sale, e.g. free consent of parties competency of parties, legality of object and consideration etc.

15. Contract of Sale How Made? Section 5 According to section 5(1) a contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer. The contract may provide for the immediate delivery of the goods or immediate payment of the price or both, or for the delivery or payment by instalments or that the delivery or payment or both shall be postponed. Further as per sub section 2 of section 5 subject to the provisions of any law for the time being in force, a contract of sale may be made in writing or by word of mouth or partly in writing and partly by word of mouth or may be implied from the conduct of the parties.

16. Contract of Sale How Made? Section 5 20,00000 + A B NEW CAR

17. Subject Matter of Contract of Sale (section 6, 7, 8) Existing or Future Good (Section 6) Existing Goods Future Goods Contingent Goods

18. Subject Matter of Contract of Sale A contract for the sale of a bag to be made by a factory, for example, is a legal contract. If, without the consent of the purchaser, a particular product is lost or impaired at the time the contract of sale is entered into, the contract shall be deemed void ab initio. The Section is based on the rule that if both parties to a contract are in error with respect to a matter of fact which is relevant for the contract, the contract shall be null and void, as referred to in Section 7 of the Act. Section 8 of that act, however, deals with the goods which have died before the sale but after the agreement to sell, so this section again highlights the goods which, without any fault of the seller or the buyer, damage or perish. This just happens to be an example of a contract to sell.

19. Ascertainment of Price (Section 9 and 10) Ascertainment of price section 9 The price in a contract of sale may be fixed by the contract or may be left to be fixed in manner there by agreed or may be determined by the course of dealing between the parties. Where the price is not determined in accordance with the foregoing provisions the buyer shall pay the seller a reasonable price. What is a reasonable price is a question of fact dependent on the circumstances of each particular case.

20. Ascertainment of Price (Section 9 and 10) Agreement to sell at valuation section 10 Where there is an agreement to sell goods on the terms that the price is to be fixed by the valuation of third party and such third party cannot or does not make such valuation, the agreement is there by avoided. Where such third party is prevented from making the valuation by the fault of the seller or buyer the party not in fault may maintain a suit for damages against the party in default.

21. Ascertainment of Price section 10 A B C

22. Conditions and Warranties https://youtube.com/shorts/nynadgwLJrY?si=XH92ttpvXh27LEd4 Stipulation : representation or statements by salesman is stipulation https://youtube.com/shorts/mPlxUrE5Uu0?si=JWjZ_C_ZWSENKRcB Statement of the seller was important in this case stipulation was important.

23. Conditions and Warranties Stipulation as to time section 11 Price for goods may be fixed by the contract or may be agreed to be fixed later on in a specific manner. Stipulation as to time of delivery are usually the essence of the contract.

24. Conditions and Warranties (section 12) A condition 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. A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a collateral for damages but not to a right to reject the goods and treat the contract as repudiated.

25. When Condition is to be treated as Warranty section 13 When buyer may for his own benefit voluntary waive a stipulation. When buyer claim only damages instead of repudiating the contract. Where the contract is non-severable. Where the fulfilment of any condition or warranty is excused by law by reason of impossibility or otherwise.

26. Express and Implied Conditions and Warranties section 14-17 Express conditions are those which are agreed upon between the parties at the time of contract and are expressly provided in the contract. Implied conditions are those which are presumed by law to be present in the contract.

27. Implied conditions Condition as to title Sale by sample Condition as to quality or fitness Condition as to wholesomeness Sale by sample as well as by description Condition as to merchantability Condition as to description

28. Implied warranties Warranty as to undisturbed possession Disclosure of dangerous nature of goods Warranty as to quality or fitness by usage of trade 2. Warranty as to non-existence of encumbrances

29. Transfer of ownership and delivery of goods A SALE OF GOODS INVOLVED TRANSFER B SELLER OF OWNERSHIP OF PROPERTY BUYER

30. Passing of Property section 18to 26 Passing of property implies passing of ownership. If the property has passed to the buyer, the risk in the goods sold is that of buyer and not of seller, though the goods may still be in the seller’s possession. Two basic factor of transfer of property Identification of Goods: section 18 provides that where there is a contract of sale for unascertained goods, the property in goods can not pass to the buyer unless and until the goods are ascertained. The buyer can get the ownership right on the goods only when the goods are specific and ascertained. Intentions of Parties:- Section 19 the property in goods is transferred to the buyer at such time as the parties to the contract intend it to be transferred.

31. Passing of property Specific or Ascertained Goods Passing of Unascertained Goods Goods sent on approval or on sale or return Transfer of property in case of reservation of right to disposal

32. Specific or Ascertained Goods section 19 Specific goods in a deliverable state Specific goods to be put into a deliverable state Specific goods in a deliverable state when seller has to ascertain price.

33. Specific goods in deliverable state section 20 Example you went to reliance digital to buy Tv and checked the features and got the delivery . Ownership transfer immediately and good ready to be delivered instantly.

34. Specific goods to be put into a deliverable state section 21 In this the seller is bound to do something to the goods for the purpose of putting them into a deliverable state. For example: if the windows operating system does not have installed The computer does not pass until such thing is done and the buyer has notice thereof.

35. Specific goods in a deliverable state when seller has to ascertain price (section 22) There is a contract of the sale of specific goods in a deliverable state, but the seller is bound to weigh, measure, test or do some other act. The property does not pass until such act or thing is done and the buyer has notice thereof.

36. Passing of Unascertained Goods Where there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained Sale of ascertained goods by description and appropriation section 23 Delivery of the goods to the carrier section 23

37. Sale of unascertained goods by description and appropriation section 23 Appropriation of goods involves selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer.

38. Delivery of the goods to the carrier section 23 The seller delivers the goods to the buyer or to a carrier or other bailee for the purpose of transmission to the buyer and does not reserve the right of disposal, he is deemed to have unconditionally appropriated the goods to the contract.

39. Goods sent on approval or on sale or return section 24 When goods are delivered to the buyer on approval or on sale or return or other similar terms the property therein passes to the buyer- When he signifies his approval or acceptance to the seller or does any other act adopting the transaction. If he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, then if a time has been fixed for the return of the foods. He does something to the good which is equivalent to accepting the goods he pledges or sells the goods.

40. Reservation of right of disposal section 25 This section preserves the right of disposal of goods to secure that the price is padi before the property in goods passes to the buyer. If the goods are shipped or delivered to a railway administration of carriage and by the bill of lading or railway receipt as the case may be the goods are deliverable to the order of the seller or his agent, then the seller will be prima facie deemed to have reserved to the right of disposal. Where the seller draws a bill on the buyer of the price and sends to him the bill of exchange together with the bill of lading or the railway receipt to secure acceptance or payment thereof, the buyer must return the bill of lading if he does not accept or pay the bill.

41. Risk prima facie passes with the property section 26 The goods remains at the sellers risk until the transfer of the goods doesnot take place to the buyer but when the property is transferred to the buyer.

42. Transfer of Title by non owners sec 27-30 Sale by person who are not owners section 27 This rule is the expression in the latin maxim Nemo dat quod non habet which means that no one can give what he has not got. The transfer of title is that the seller cannot transfer a better title to the buyer for goods than he himself has. If the seller is not the owner of goods then the buyer aLSO WILL NOT BECOME THE OWNER. THE TITLE OF THE BUYER SHABB BE THE SAME AS THAT OF THE SELLER.

43. Sale by person not the owner section 27 Exceptions to protect the interests of innocent buyers Sale by mercantile agent section 27 Sale by one of the joint owners section 28 Sale by a person in possession under voidable contract section 29 Sale by one who has already sold the goods but continues in possession thereof section 30 Sale by buyer obtaining possession before the property in the goods has vested in him section 30 Effect of Estoppel Sale by an unpaid seller Sale under the provisions of other acts.

44. Duties of seller and buyer section 31 It is the duty of the seller to deliver the goods and of the buyer to accept and pay for them, in accordance with the terms of the contract of sale. Payment and delivery are concurrent conditions section 32 The seller shall be ready and willing to give possession of the goods to the buyer in exchange for the price and the buyer shall be ready and willing to pay the price in exchange for possession of the goods.

45. Delivery Section section 33 Delivery of goods sold may be made by doing anything which the parties shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or any person authorized to hold them on his behalf. effect of part delivery section 34 A delivery of part of goods in progress of the delivery of the whole has the same effect for the purpose of passing the property in such goods as a delivery of the whole but a delivery of part of the goods with an intention of severing it from the whole, does not operate as a delivery of the remainder.

46. Buyer to apply for delivery section 35 Apart from any express contract the seller of goods is bound to deliver them until the buyer applies for delivery section 35 .