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EXPLAIN CONDITIONS AND WARRANTIES IN A CONTRACT OF SALE OF GOODS.
Express Conditions & Warranties:Conditions and warranties are those which are included in clear words and all parties are agreed at the time of contract.
IMPLIED CONDITIONS :Those conditions are not included in the contract but the law presumes their existence in the contract are called implied conditions. Following conditions are included by law in to a contract of sale of goods.
1. Right To Sell :This right is considered as an implied conditions in every sale contract. It is presumed that he can sell the goods and he can enter in sale agreement.
2. Sale By Description :In this case implied condition is that goods shall the correspond with the description. A buyer can reject if the goods if these are not according the description.
3. Sale By Sample :In this case goods must be supplied according the sample agreed upon condition. i. ii. iii. The buyer may be able to compare the sample with the bulk. The goods should be free from any defect. The bulk should match with the quality of the sample.
4. Sale By Sample and Description :In this case goods supplied must correspond with sample and description both. So there is implied condition in it that if bulk does not match with one even then buyer may reject the goods.
When someone makes a sale of contract about the eatable goods this condition is applied. Naveed. Example :. Dangerous Nature Must Be Disclosed :It is necessary that seller should disclose the dangerous nature of the good sold to the buyer.S194744. The company was held liable in damages. Baqir son of Mr. IMPLIED WARRANTIES 1. Example :. It is implied condition that goods shall serve the purpose of buyer.S195155 . In case of any disturbance a buyer can claim the damages from the seller. Conditions As Quality To Fitness :Sometimes buyer informs the seller that he wants to purchase the goods for particular purpose. Wholesomeness Condition :It means conductive to health. Naveed due to the ignorance of the nature of camel Mr. It is implied condition. As the buyer relays on the sellers skill then seller should provide the goods according the description. Vicky. Possession Of Goods :It is an implied warranty on the part of the seller that buyer shall enjoy the quiet possession of goods sold to him without any disturbance. Condition of Merchantable Quality :Merchantable quality means that the goods must be sale able in the market as goods of that description are sold. In case of any defect a seller must inform the buyer. 2. Noor sold the camel to Mr. 2 S194469. The camel killed to Mr.Sams Food Company supplied food on the marriage party of Mr.GLUL 2023 BUSINESS LAW 5. After eating the food people were infected and died. If someone supply the goods and it damages to health then supplier will be liable for damages. If he does not disclose then any type of loss suffered by the buyer will be compensated by the seller. But he did not told about the nature of the camel.Mr. Naveed which is very dangerous. Noor will be liable to compensate Mr. 6. 7.
growing crops. Mr. After a month. In this case of breach of warranty and Mr. it is a contract so specified goods. In this case contract completes by delivering two goods agreed upon. Karim. Jawad. ii. it is called unascertained good. It has two kinds : i. It is a contract of unascertained goods. In this case seller is not bound to supply any particular good. Burden on Property :Before selling the goods. The goods must be in actual existence. Jawad has to make the payment of pledged amount to Mr.Mr. Specific Goods :When goods are identified and agreed upon at the time of contract of sale are called specific goods. GOODS It is defined in the following words. Karim.GLUL 2023 BUSINESS LAW 3. Such type of goods are described by sample or description. pledges it with Mr. Mr."X" agrees to sell "Y" a Honda motor cycle which bears number. Karim for some purpose and sells it to the Mr. Existing Goods :The seller possessing the goods at the time of entering into contract are called existing goods. "Goods mean every kind of moveable property other then actionable claims on money and includes stocks.S195155 3 . Example :. S194469. Khaliq the owner of a horse. it is necessary that these should be free from any charge or encumbrance from any third party.S194744. Unascertained Goods :If the goods cannot be identified separately at the time of contract. The buyer can claim such damages from seller. Khaliq obtains possession of the horse from Mr. If a sellers does not tell about such burden on the goods to the buyer and later on the buyer suffers a loss." KINDS OF GOODS :Following are the important kinds of goods : 1.If "A" agrees to sell "B" one hen out of 100 living in shed. Example :. Karim goes to Jwad and tells him the pledge story. Example :. shares. Jawad is entitled to claim compensation from Mr. Khaliq. Mr.
CONDITION It is defined in the following words. Future goods are produced or acquired by the seller after making the contract. Define and distinguish or Difference between warranty and conditions with reference to the contract of the sale of the goods act. Dane agrees to sell Mr. George the diamond provided he is able to import. the breach of which give rise to a right to treat the contract as repudiated.S195155 .Mr. Contingent Goods :Such goods are not available at the time of contract like future goods. Zain agrees to sell Mr." The above definition shows that for the implementation of a contract warranty is not essential. The acquisition of the such goods by the seller depends upon contingency which may happen or not. The breach of condition will be regarded as the breach of the whole contract. Example :. 4 S194469. So there may be agreement to sell for future goods.S194744. 3. "A warranty 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. Jack a computer which he will import after a month. It is a contract for the sale of contingent goods." So according the above definition it is clear that condition is very essential for the performance of a contract. "A condition is stipulation essential breach to the main purpose of the contract. Future Goods :Such type of goods are not in the possession of the seller and not available at the time of contract. WARRANTY Sales act defines the warranty in the following words.Mr.GLUL 2023 BUSINESS LAW 2. For the breach of warranty only damages can be claimed. Example :. It is contract of sale.
" A contract to transfer the ownership of goods from seller to the buyer is known as contract of sale. Sales of Goods Act :It is defined in these words.GLUL 2023 BUSINESS LAW Difference or Distinction Between Condition and Warranty 1.S194744. 3. : A warranty has no direct link with the essential part of the contract. Link With Contract :Condition Warranty : A condition has a direct link with the essential part of the contract. "A contract where by the seller transfers or agrees to transfer the property or the goods to the buyer for price. 5 S194469. 4. Define the sales of goods act and discuss the essential characteristics of a contract of sales of goods.S195155 . : Breach of warranty gives right to the party to claim the damages only. : A breach of warranty may not be treated as a breach of condition. Difference In Rights :Condition Warranty : Breach of condition gives right to the party to reject the contract. Difference In Importance :Condition Warranty :A condition is essential to the main purpose of a contract. 2. Superiority of Condition :Condition Warranty : A breach of condition may be treated as a breach of warranty. : Breach of warranty gives right to the party to claim the damage only.
Buyer and Seller :One person cannot become buyer and also the seller. So possession and ownership both will be transferred to buyer. S194469. It is a contract of sale.Every kind of movable property except actionable claims (which can be enforced by legal action) and money is regarded as goods. Kashif sells the shop to Mr. Transfer of Ownership :To constitute the sale contract the seller must transfer or agree to transfer the property ownership to the buyers. Example :. Example :. buyer and seller. The possession and ownership both will transfer to "Y". Zahir. Example :. Example :. 2. It is a sale. Yuva sells his car to Mr. 5. It is agreement to sell. Kashif is a seller and Mr.GLUL 2023 BUSINESS LAW Main Features or Essentials 1."X" buys a pen from the "Y" and pays the whole price on his hand.Mr. 3. But the transfer of bus will take place after one year. Bazooka agrees to purchase Mr."X" sells a book to "Y" for RM 300.Mr.S194744. there are always two parties to a contract of sale.Mr. Larson for RM 7 millions. Example :. so it is a contract of sale. Price :Price must be the consideration in the contract of sale."X" sells the car to "Y" for 6 millions.S195155 6 . Example :. Mr. Zahir is a buyer in this case. Tito bus for RM 25 millions. 4. Goods . Agreement to Sell :When the transfer of ownership in the goods is to take place at a future date the contract is called agreement to sell. Sale :When ownership and possession of the good is immediately transferred from seller to buyer it is called contract of sale. 6. In this case car is a moveable property. If goods are exchanged with goods it is barter and not a contract of sale.
Transfer of Goods :Sale Agreement to sell : In case of sale property is transfers from seller to buyer.Suppose Miss. An Agreement to Sell :The contract is called agreement to sell when transfer of property takes place at a future time subject to some condition to be fulfilled. Rina enters into contract of sale of horse in the hand of Mr. It is a sale." There are two parts of this definition: 1.000 to Miss. Example :. 2.S195155 7 .S194744. Rights of Buyer and Seller :Sale Agreement to sell : Goods become the property of the buyer in case of sale. An actual Sale :An actual sale property in goods transfers from sellers to buyers under the contract of sale. Rina and she delivers her horse to Mr. : In case of agreement only promise is made to transfer the goods. Guru against RM 30. S194469. Guru pays RM 30. 2. Nature of Performance :Sale Agreement to sell : A sale is a contract which is being performed. Poonam agrees with Mr. DIFFERENCE BETWEEN SALE AND AGREEMENT TO SELL :- We can analyses the difference by the following facts : 1. : An agreement to sell is a contract which is to be performed. Mirza to sell him her house against RM30 millions after the construction next year.000. "A contract whereby the seller transfers or agrees to transfer the property or the goods to the buyer for a price. : Goods remain the property of the seller in case of agreement. Example :.Suppose Miss. Guru. 3.GLUL 2023 BUSINESS LAW CONTRACT OF SALE :- It is defined in the following words. Mr.
7. : In case of agreement seller can refuse to deliver the goods if price is 5. 8. Seller's Default :Sale Agreement to sell : In case of sale the buyer has a personal remedy. : In case an agreement the seller can claim only for damages. a seller can claim for the price of goods. Insolvency of Buyer :Sale Agreement to sell not paid. : In a sale case seller can use his right of lien or stoppage. : In case of sale the responsibility of loss by accident falls on the 8 S194469. : In case of agreement the buyer can claim only for damages. : In case of agreement a buyer can claim only dividend. 6.GLUL 2023 BUSINESS LAW 4. Agreement to sell : In case an agreement to sell responsibility of loss falls on the sellers.S195155 . Responsibility of Loss :Sale buyers.S194744. Buyer's Default :Sale Agreement to sell : In case of sale. Seller's Insolvency :Sale Agreement to sell : In case of sale a buyer has no risk.
The purpose of these terms actually not to give the burden to the seller. although not aware of his rights. indirect provisions will provide a form of protection to him.GLUL 2023 BUSINESS LAW CONCLUSION Overall. the implied term is important because these terms will exist in every contract of sale as provided Sale of Goods Act 1957. now we know that the sales of goods contract. but more to provide protection to the purchaser or in particular the user.S194744. as long as certain conditions are met first. 9 S194469. When a buyer buys an item. unless there is agreement or a clear provision to the contrary is made.S195155 .
1995). Baviera.S194744. Books 1) 2) 3) A. (1/04/2003). (8th Edition. Pitman Publishers. Eastern Book Company. Avtar Singh.html>. <www. 1981). International Company and Commercial Law Review.S Atiyah. “Sale of Goods”.com>. Lucknow.GLUL 2023 BUSINESS LAW BIBLIOGRAPHY Articles 1) Paul J Omar.com>. <www. (3rd Edition. Westlaw. Websites 1) Kevin’s English Law Glossary.com/lawglos_title.manupatra. P. 1998. 10 S194469.kevinboone. “Sales”.S195155 . Phillipines. <www. 2) 3) Manupatra.westlawinternational. “Contracts for the Sale of Goods – French and British Approaches”. New Delhi. 1985). (UP Law Centre. “Principles of the Law of Sale of Goods & Hire Purchase”.
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