Thursday, 26 March 2020

Law of Sale of Goods

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Law of Sale of Goods


A contract of sale is a contract whereby the seller transfers or agrees to transfer the property
in goods to the buyer for a price.
Sale is to be distinguished from an agreement to sell.
Where under a contract of sale, the property in goods is transferred from the seller to the
buyer, it is a called a sale. On the other hand, an agreement to sell means a contract of sale
under which the transfer of property in goods is to take place at a future date or subject to
conditions thereafter to be fulfilled.
Goods may be classified as existing, future and contingent.
In contract of sale, parties make certain stipulations. All stipulations are not treated on the
same footing. These stipulations are technically known as conditions and warranties.
These conditions and warranties may be express or implied.
The doctrine of caveat emptor is a fundamental principle of the law of sale of goods. There
are however, certain exceptions to the doctrine.
The Act contains a number of rules for passing the property in the goods from the seller to
the buyer.
The contract of sale of goods is to be performed, as any other contract.
The act provides for the duties of the seller and the buyer, and rules regarding delivery of
goods.
In case the buyer fails or refuses to pay for the goods, the seller is known as unpaid seller,
and he is given certain rights by the law.


Condition: It 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.
Delivery: It is defined as a voluntary transfer of possession from one person to another.
Notes Goods: It means every kind of movable property, other than actionable claims and money; and
includes stocks and shares, growing crops, grass and things attached to or forming part of the
land which are agreed to severed before sale or under the contract of sale.
Warranty: It is a stipulation collateral to the main purpose of the contract, the breach of which
gives rise to a claim for damages but not to a right to reject the goods and treat the contract as
repudiated.
Unpaid Seller: A seller of goods is an unpaid seller when (i) the whole of the price has not been
paid or tendered, or (ii) a bill of exchange or other negotiable instrument has been received as
conditional payment and the condition on which it was received has not been fulfilled by reason
of the dishonour of the instrument or otherwise.

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