Sale of goods act and restrictive trade practices

BY PROF. MAYUR MALVIYA

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Contract of Sale
Definition (Section 4) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for price". ESSENTIALS OF CONTRACT OF SALE From the above definition, the following essentials of a contract of sale may by noted: 1. There must be at least two parties 2. Transfer or Agreement to transfer the ownership of goods. 3. The subject matter of the contract must necessarily be 'goods'. 4. The consideration is Price. 5. A Contract of sale may be absolute or conditional 6. All other essentials of a valid contract must be present.

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Sale and Agreement to Sell

1. A sale is an executed contract 1.An Agreement to sell is an executory contract.

2. In a sale, since the property has passed to the buyer, the seller can sue the buyer for the price of the goods.

2.In an agreement to sell, in case of breach, the seller can only sue for damages, unless the price was payable at a stated date. 3.An agreement to sell creates a right in personam

3. A sale creates a right in rem

4. In case of loss of goods, the loss will 4.The loss in this case shall be borne by fall on the buyer, even though the goods the seller, even though the goods are in are in the pos-session of the seller. It is the pos-session of the buyer. because 'Risk' is as-sociated with ownership

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Hire Purchase Agreement

It is an agreement for hire, with an option to purchase. The hirer, under this agreement, is required to pay every month a particular sum of money, and if he pays in that way for a fixed number of months, the hirer will become the owner of the goods on the payment of the last instalment. But, if the hirer fails to pay any particular instalment, the owner can terminate the contract and take away the goods, because the ownership continues to remain in the owner. A "Hire-purchase agreement" is distinct from "Sale" in which price is payable by instalments A 'Hire-purchase agreement,' does not result in passing of the property unless the option to purchase is exercised, usually by payment of all the instalments. Till such time, it constitutes bailment.

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

CONDITIONS
In a contract of sale, parties make certain stipulations, i.e., agree to certain terms. Some of them may be intended by the parties to be of a fundamental nature, e.g., quality of the goods to be supplied. The stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated. Such stipulations are known as `Conditions`.

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Stipulation Remedy Exercise of option as to treatment as breach of warranty 1. Option of buyer 2. Waived by buyer 3. Sale is not severable or contract is for specific goods

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Warranties
The 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. Here the stipulations are known as `warranties

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Warranty as to title By description By sample Quality or fitness Free from any charges over goods

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Conditions and warranties'

The stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated. Such stipulations are known as `Conditions`.

. The 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. Here the stipulations are known as `warranties

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

CAVEAT EMPTOR
Caveat Emptor is a fundamental principle of the law of sale of goods. It means "Caution Buyer", i.e. "Let the buyer beware". In other words, it is not the duty of the seller's duty to point out defects of his own goods. The buyer must inspect the goods to find out if they will suit his purpose. Exceptions: Custom of trade Fraud For specific purposes - Dr.Grant vs.Australian knitting mills Merchantable quality

1. 2. 3. 4.

Caveat venditor Let the seller beware

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

DUTIES OF SELLER AND BUYER

Duty of the seller To deliver the goods, in accordance with the terms of the contract of sale. Delivery and payment of price are concurrent conditions. The seller of goods has the duty of giving delivery according to the terms of the contract. Duty of the buyer Pay for the goods; Accept delivery; and Pay compensation to the seller in case he wrongfully refuses to accept delivery.

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Unpaid seller
An unpaid seller of goods is a person who has not been paid the whole of the price or to whom the whole of the price has not been tendered. The term "seller" includes an agent of the seller. The seller of goods is deemed to be an "unpaid sellerif: (a) the whole of the price, has not been paid or tendered; (b) when 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.

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

RIGHTS OF AN UNPAID SELLER

Rights against goods Rights Against the Buyer Personally Right to sue for the price; and The right to sue the buyer for damages for non-acceptance

(a)Lien on the goods (b) A right of stoppage in transit (c) A right of re-sale
PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Restrictive Trade Practices

The term restrictive trade practice is used for any strategy used by producers to restrict competition within a given market. market. Collusion resulting in the formation of a cartel is one such practice. practice. Other practices that fall short of the formation of a cartel but are nonetheless against the public interest and illegal include: include: (a) the setting of minimum prices; prices; (b) agreements to share markets; markets; (c) the refusal to supply retailers that stock the products of other competitors; competitors; (d) setting different prices for different buyers (discriminatory pricing); pricing); (e) exchanging information. information. The aim of restrictive practices is to raise prices and restrict output to the benefit of the companies practicing them. them.

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Unfair Trade Practices (36A)

Where by any method whatsoever , a belief is created in the minds of consumers as to some quality or utility of goods or services, and the goods or services actually fall short of those beliefs, the method adopted is an unfair trade practice. practice. 36 A (1) : False representation of products or services, including false description, guarantee, warranty or performance of a product or service. service. 36 A (2) : Advertisement of false bargain price. price. 36 A (3) : Contest, lotteries, game of chance or skill for promotion of sale. sale. 36A( 36A(4 A(4) : Sale of goods not in conformity with safety standards provided by the law. law. 36A( 36A(5 A(5) : Hoarding or destruction of goods or refusal to sell goods. goods.

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

Sec.33 Agreement restricting sale or purchase For tie up or full line sale Exclusive dealing agreement Collective agreement of price fixation nd tendering Discriminatory dealings Resale price maintenance Restrict output or supply Restrict employment of any method Exclude any person from trade association Eliminate competition Restrict procurement Collective bidding Declared by govt. as restrictive Any enforciation of the above

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013

PROF. MAYUR MALVIYA

Tuesday, February 19, 2013