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Law of Sales of Goods Presentation Transcript:
1.Discussion Topics
Law of sales of goods
Contract of sale
Essentials of Contract of sale
The rules regarding transfer of property in goods
Modes of delivery
Rules of delivery of goods
2.Law of sale of Goods
The law as to the sale of goods was originally embodied in sections 76 to 123 of the Indian Contract Act 1872.
It is well known that our sale of Goods Act 1930 is based upon and is largely a reproduction of the English sale of Goods Act 1893 and in principle the law of sale.
3.Contract Formation
A contract for the sale of goods can be made in any manner that shows agreement between the buyer and seller.
A contract may be made orally or in writing or through any other conduct by both parties that acknowledges the existence of a contract.
4.What is Contract of Sale
A contract of sale is a legal contract an exchange of goods, services or property to be exchanged from seller to buyer for an agreed upon value in money paid or the promise to pay same. It is a specific type of legal contract.
5.Essentials of a valid Contract of Sale
There must be Two parties.
Transfer of property
Goods
Price
An Agreement to Sell
Other formalities
6.There must be Two parties.
There must be at least two parties, i.e. one buyer and the other seller. A person cannot buy his own goods.
Example:
“A” sells his computer to “B”. “A” is seller and “B” is buyer.
7.Transfer of property
It is the ownership that is transferred in a Contract of sale.
Example:
“A” sells his car to “B”. The ownership of the car is transfer from “A” to “B”.
8.Goods
The subject matter of contract of sale must be movable goods. It can be movable property other then actionable claim and money.
An actionable claim means a debt or a claim for money which a person may have against other.
Example:
“A” sells his car to “B” here is a contract between both the persons because car is a move able thing.
9.Price
Consideration in a contract of sale has necessarily to be money. Thus, if for instance, goods are offered as consideration for goods, it will not amount to sale, but it will be called a 'barter'.
Similarly, in case there is no consideration, it amounts to gift and not sale. However the consideration may be partly in money and partly in goods.
Example:
“A” sells his car to “B” it is contract of sale.
10.An Agreement to Sell
Where under a construct of sale, the transfer of property in the goods is to take place at a future time or subject to some condition there after to be fulfilled the contract is called an “Agreement to Sale”
An agreement to sell becomes a sale where no time elapses or the conditions are fulfilled subject to which the property in the goods was to be transferred.
11.Other formalities
There is no specific procedure to make a contract. Apart from the above all other essentials of valid contract like capacity of parties, free consent, legality of object etc. should also be there in contract of sale
12.Condition
A term or requirement stated in a contract, which must be met for the other party to have the duty to fulfill his/her obligations.
13.Warranty
In business and legal transactions, a warranty is an assurance by one party to the other party that specific facts or conditions are true or will happen the other party is permitted to rely on that assurance and seek some type of remedy if it is not true or followed.
A warranty may be express or implied depending on what you bought
14. The rules regarding transfer of property in goods
Unascertained goods
Intention of parties
Goods in deliverable state
15.Unascertained goods
Ascertainment is the process by which goods are identified and separated
The property in the goods does not pass to the buyer until the goods are ascertained.
Example:
“A” agrees to sell 100 kg of rice out of rice lying in a godown. “B” becomes the owner when 100 kg rice will be separated the rest.
