An

Assignment Report (2)

Title- CORPORATE SOCIAL

RESPONSIBILITY

SUBMITTED TO:
Anil chandhok

SUBMITTED BY :
Tanuj Bhasin
18 BBA 1462
INTRODUCTION

Your business doesn't exist in isolation, simply as a way of making money. Your
employees depend on your business. Customers, suppliers and the local community are all
affected by you and what you do. Your products, and the way you make them, have an
impact on the environment.

Corporate social responsibility (CSR) takes all this into account and can help you create
and maintain effective relationships with your stakeholders. It isn't about being "right on", or
mounting an expensive publicity exercise. It means taking a responsible attitude, going
beyond the minimum legal requirements and following straightforward principles that apply
whatever the size of your business. This guide explains how you can exploit the benefits that
CSR can bring to your bottom line.

Definition
CSR:
‘Corporate,’ ‘Social,’ and ‘Responsibility.’ In broad terms, CSR relates to responsibilities
corporations have towards society within which they are based and operate, not denying the
fact that the purview of CSR goes much beyond this. CSR is comprehended differently by
different people.
Philip Kotler and Nancy Lee (2005):
“A commitment to improve community well being through discretionary business
practices and contributions of corporate resources”
MallenBaker:
“A way companies manage the business processes to produce an overall positive
impact on society.”

World Business Council for Sustainable Development

“Corporate Social Responsibility is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large”.

BACKGROUND OF CSR
The role of corporates by and large has been understood in terms of a commercial
business paradigm of thinking that focuses purely on economic parameters of success. As
corporates have been regarded as institutions that cater to the market demand by providing
products and services, and have the onus for creating wealth and jobs, their market position
 has traditionally been a function of financial performance and profitability. However, over
the past few years, as a consequence of rising globalisation and pressing ecological issues, the
perception
of the role of corporates in the broader societal context within which it operates, has been
altered. Stakeholders (employees, community, suppliers and shareholders) today are
redefining the role of corporates taking into account the corporates’ broader responsibility
towards society and environment, beyond economic performance, and are evaluating whether
they are conducting their role in an ethical and socially responsible manner. As a result of this
shift (from purely economic to ‘economic with an added social dimension’), many forums,
institutions and corporates are endorsing the term Corporate Social Responsibility (CSR).
They use the term to define organisation’s commitment to the society and the environment
within which it operates. The World Business Council on Sustainable Development’s

(WBCSD) report was titled Corporate Social Responsibility:

Making Good Business Sense and the OECD Guidelines for 1 Multi-National
Enterprises which includes a discussion on how CSR is emerging as a global business
standard. Further, there is a global effort towards reinforcing CSR programmes and initiatives
through local and international schemes that try to identify best-in-class performers.

Arguments for socially-responsible behaviour

 It is the ethical thing to do

 It improves the firm’ public image
 It is necessary in order to avoid excessive regulation
 Socially responsible actions can be profitable
 Improved social environment will be beneficial to the firm
 It will be attractive to some investors
 It can increase employee motivation
 It helps to corrects social problems caused by business

CSR behaviour can benefit the firm in several ways

 It aids the attraction and retention of staff

 It attracts green and ethical investment
 It attracts ethically conscious customers
 It can lead to a reduction in costs through re-cycling
 It differentiates the firm from its competitor and can be a source of competitive
advantage
 It can lead to increased profitability in the long run .

Corporate Social Responsibility (CSR) is a concept whereby organizations consider the

interests of society by taking responsibility for the impact of their activities on customers,
employees, shareholders, communities and the environment in all aspects of their operations.
This obligation is seen to extend beyond the statutory obligation to comply with legislation
and sees organizations voluntarily taking further steps to improve the quality of life for
employees and their families as well as for the local community and society at large.
With businesses focusing on generating profits, sustainability was not a popular
concern among companies up until recently. Now, in an era of globalization, multinational
corporations and local businesses are no longer able to conduct destructive and unethical
practices, such as polluting the environment, without attracting negative feedback from the
general public. With increased media attention, pressure from non-governmental
organizations, and rapid global information sharing, there is a surging demand from civil
society, consumers, governments, and others for corporations to conduct sustainable business
practices. In addition, in order to attract and retain employees and customers, companies are
beginning to realize the importance of being ethical while running their daily operations. The
corporate response has often meant an adoption of 'a new consciousness', and this has been
known as Corporate Social Responsibility since the 1970’s. As stated by the department of
Trade and Industry in the United Kingdom, CSR represents "the integrity with which a
company governs itself, fulfills its mission, lives by its values, engages with its stakeholders,
measures its impact and reports on its activities". Although most people appreciate the recent
advancement of CSR, some argue that corporations are still not doing enough or are only
acting in self interest. These people say that multinational corporations are acting ethically in
areas that are highly regulated, such as North America, but at the same time, they are acting
in an opposite manner in other parts of the world (such as using cheap or child labour). In
addition, while corporations must have good CSR policies in order to maintain their
reputation, they are also expected to maximize profits for stakeholders such as shareholders,
employees, and customers. Therefore, people argue that businesses do not put in a sufficient
amount of resources to achieve what they have promised in their CSR policies.
In any case, companies are now expected to perform well in non-financial areas such as
human rights, business ethics, environmental policies, corporate contributions, community
development, corporate governance, and workplace issues. Some examples of CSR are safe
working conditions for employees, environmental stewardship, and contributions to
community groups and charities. The practice of CSR is subject to much debate and criticism.
Proponents argue that there is a strong business case for CSR, in that corporations benefit in
multiple ways by operating with a perspective broader and longer than their own immediate,
short-term profits. Critics argue that CSR distracts from the fundamental economic role of
businesses; others argue that it is nothing more than superficial window-dressing; still others
argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful
multinational corporations.

Advantages of corporate social responsibility

 Japanese companies often have 100 year business plans. If you are planning to be
around in business for the long-run then making sure ALL your stakeholders are
looked after is wise. If you mess the environment up people notice. If you mess
people around people remember. If you mistreat people they never forget. And yet
 when you care for the environment you are awarded. When you care for people you
are awarded. You are rarely forgotten when you genuinely care. A business enterprise
is no different to a human - people will have feelings about it and that impacts
business positively or negatively.

 Many companies say they care and yet they may not take the actions of caring. Going
beyond what is expected becomes exemplar and noted. An enterprise' actions are
notes the most by its employees and staff. The business team that runs an organization
knows what is going on. They know all the high and low points of a company. These
exact same people interact each and every day with the businesses customers. How
they feel about the company they work for impacts the bottom line of a company
directly. A sales person who loves his work and the company will sell more. The
receptionist who cares for her company will care for its customers making them feel
better and of course they are then more likely to return.

 Many businesses make a loss the very first time a customer shops with them. This is
an amazing little known fact outside of the business world. It may cost thousands of
dollars for some companies to gain new customers because of long lead times or
expensive advertising campaigns. If they only sell to a customer once then they don't
ever recover their investment in acquiring that new customer or make a profit.
Customers these days are spoilt for choice. Many customers choose a business on how
they feel about the company of the people in the company. Most purchasing decisions
are subjective. Adding subjective and hard to measure components to a business such
as solid CSR programmes add to the perceived value added benefit a customer
received when they shop with the company.

 2008's Good purpose™ global study of consumer thinking showed that almost seven
out of 10 (68%) consumers say they would remain loyal to a brand during an
economic downturn if it supports a good cause. Surprising. And logic-defying!

 That same very recent study highlighted some other interesting things too. Like this:
half (52%) of global consumers are more likely to tell others about a brand that
supports a good cause over one that does not, with 54% saying they would help a
brand promote a product if there was a good cause behind it. And going even
further…Around the world, consumers have voiced a strong desire for business
marketers to link their brands to social action. Forty-two percent say that if two
products are identical in price and quality then the one that has the commitment to a
social purpose trumps key factors like design, innovation and brand loyalty when
selecting one brand over the other. Stunning isn't it?

 The citizen brand emerges. And this comment from this key report just says it all: It
means that putting meaning into marketing is more important than ever. One of the
reporters puts it this way: "These findings present brands with an opportunity to
 engage in 'mutual social responsibility'-brands and consumers working together to
effect positive social change for mutual benefit -and to realize a 'return on
involvement,' a new metric that looks at participation and involvement as true builders
of brand loyalty. When a brand acts as a 'citizen brand,' contributing to community
and society beyond its functional benefits, 'doing good' can translate to 'doing well'
and the brand can forge a stronger emotional bond with its consumers.

Forms and Dimensions of Corporate Social Responsibility (CSR)

i. Economic Responsibility:
A corporation has to meet its economic responsibilities in terms of reasonable return to
investors, fair compensation to employees, goods at fair prices to customers, etc. Thus,
meeting economic responsibility is the first-layer of responsibility and also the basis for the
subsequent responsibilities. The fact remains that meeting economic responsibility is must for
all corporations to survive in the time.

ii. Legal Responsibility:

The legal responsibility of business corporations demands that businesses abide by the law of
land and play by the rule of the game. Laws are the codification of do’s and don’ts do’s in the
society.

Abiding by laws is the prerequisite for any corporation to be socially responsible. Corporate
history is replete with instances where violation of laws disallowed corporations to run any
longer. Enron, Union Carbide, Global Trust Bank, etc. are some of such illustrative corporate
cases of social rejection and boycott.

iii. Ethical Responsibility

These responsibilities refer to obligations which are right, just, and fair to be met by
corporations. Just abiding by law, procedure, and rule and regulations does not make business
conduct always as ethical or good. The conduct of corporations that go beyond law and
contribute to social well being is called ethical.

Hence, corporations have an ethical responsibility to do, even going beyond law and rule and
regulations, what proves good for the society. In other words, ethical responsibilities consist
of what is generally expected by society from corporations over and above economic and
legal expectations.
Dimensions of CSR:
The facets and dimensions of corporate social responsibility include the obligations a
business has to its interest groups also called ‘stakeholders.’ The stakeholders in a business
include shareholders / owners, consumers, employees, government, society, etc.

Shareholders:

It is the primary responsibility of every business to see that the owners or shareholders get a
fair rate of dividend or fair return on capital invested. This is a legitimate expectation of
owners from business. Naturally the expectations have to be reasonable and consistent with
the risks associated with the investment. Owners also expect economic and political security
of the capital invested. If such security is not ensured, the inevitable consequence is
withdrawal of capital and search for alternative channels other than business.

Employees:
As regards responsibility towards employees, the major issues governing the employer-
employee relationship pertain to wages and salaries, superior- subordinate relations and
employee welfare. It is the responsibility of management to provide for fair wages to workers
based on the principal of adequacy, equity and human dignity.

Maintaining a harmonious relationship between superiors and subordinates and providing for
welfare amenities for employees are also the responsibilities of management. There are
specific laws in India governing factory employment tinder which provision of satisfactory
working conditions for safety, health and hygiene, medical facilities, canteen, leave and
retirement benefits are obligations on the part of employer.

There are other laws as well providing for the security of workers against the contingencies
of sickness, maternity, employment injury and death, provident fund and pension for
employees.

Government:
Social responsibility of business towards government requires that:
(i) the business will conduct its affairs as a law-abiding unit, and pay all taxes and other dues
honestly,

(ii) management will desist from corrupting public servants or the democratic process for
selfish ends, and no attempt will be made to secure political support by money or patronage.

Community:
Arising out of their social responsibility towards the community and public at large,
businessmen are expected to maintain a balance between the needs of business and the
requirements of society. In general, business should be so managed as to make the public
good become the private good of the enterprise rather than the old doctrine that “what is good
for the business is good for the society”.

Trends in Corporate Social Responsibility

‘Thinking globally’ to ‘Thinking locally”

 The last decade has seen a mad rush amongst multinational companies to gain first
mover advantages in emerging markets by establishing operations and subsidiaries.
However most of the firms have found out to their cost that local competition was not
as easy to overcome as they had thought with matters made being worse by cutthroat
competition amongst the multinationals themselves. Most multinationals are
beginning to realise that loss making operations cannot be continued year after year
under the pretext of investment for future expectation of profits. It is high time that
the local subsidiaries start to deliver profits of their rather than continuing to act as
sinks of the firm’s global resources.
 According to Dawar and Chattopadhyay (2000) “Local operations now realize that the
three to five percent of consumers in emerging markets who have global preferences
and purchasing power no longer suffice as the only target market. Instead, they must
delve deeper into the local consumer base in order to deliver on the promise of
tapping into billion-consumer markets”. Batra (1999) argues that the usual business
strategy of using products that have been historically successful in developed nations
will not work in emerging markets. Prahlad and Lieberthal (1998) point out that
companies must make the transition in their business strategy of ‘thinking globally’ to
‘thinking locally’ as each of the merging markets represents an intriguing challenge
for marketing with its vast diversities existing across nations and even within nations
in culture and socio economic conditions. It is in marketing across such diverse
cultures and varying conditions that the concept of corporate social responsibility
becomes critical to success. In this paper, we will focus on two main paradigms of
marketing in which CSR plays an important part.

CSR trends that provide rewards for companies, communities and the world…

 Return on Investment (ROI): More businesses are recognizing the benefits of CSR,
from cost savings on energy and materials to direct benefits like enhanced reputation
among customers and clients and indirect benefits like employee satisfaction. Most
importantly, CSR programs provide rewards—and increased monetary value—
through the creation of products and services that support sustainability.
 Increasing Rewards for Communities and Workers: Companies are working to
mitigate their impacts on community resources such as water through conservation
and by promoting sustainable development that benefits communities and employees.
  New Media and the Fight for Customers’ Mindshare: Through CEO blogs, YouTube
videos and other new media tools, smart companies are arming customers with more
information about CSR efforts.
 Carbon Footprinting Reaches Supply Chains: More companies are gathering credible
data about the carbon emissions in their global supply chain.
 New Opportunities in Environmental Markets: Beyond reducing their climate impact
through decreased carbon emissions, advanced companies are working to monetize
and develop markets for environmental services like water, nutrients and biodiversity.
EX: Yahoo! Launches New Business & Human Rights Initiative

THE FUTURE OF CORPORATE SOCIAL RESPONSIBILITY

Companies today are increasingly sensitive about their social role. The companies not
only concentrate on how they will position their product or how they will sell it but also they
have a social strategy because they have started feeling that brands are built not only around
good quality of the product; but also around emotions and values that people ascribe to those
products

In addition to be more precisely defined, the CSR movement is evolving following

some trends that I intend to describe briefly:
 First, there are no more a few companies, which have consecrated themselves to this
new doctrine, but the majority of large enterprises have introduced it in their agenda.
Philip Kotler and Nancy Lee in their book “Corporate Social Responsibility” indicate
that charitable giving has risen from $9.6 b in 1999 to $12, 19 b. In spite of some
opponents like the survey in The Economist last year which maintains that CSR is
eroding the basis of the free enterprise system, every time more this new doctrine is
catching the attention of business people.
 Second, since the term “triple bottom line” (people, planet and profit) was carried in
1994, an accelerating progression from early concerns about safety, health and
environment to a growing range of social concerns have been seen, among them
human rights and diversity. Recently other concerns like fair trade pricing and fair
wages as well as socially increasingly have increasingly made headlines. There is an
increasing conviction that there is not a conflict but a positive correlation between
CSR and profitability and that profit can go hand-in-hand with social and
environmental responsibility.
 Third, the social responsible enterprises every time more publish their activities for
their shareholders and the public in general, either in their general annual report or in
CSR specific reports. According to a survey of KPMG in 2002, 45% of co portions
issued environmental, social or sustainability reports compared with 35% in their
1999 survey. Greater transparency is a means to improve accountability and trust.
 Fourth, CSR has ceased to be a form of philanthropy so that it is no more the case to
sign a check at the end of each financial year, after a positive result - and CSR enters
 into the normal activities of the corporation before declaring its profits and becoming
a all year around responsibility. It is a shift to making long-term commitments to
especial social issues providing more than cash contributions, sourcing funds from
business units as well as philanthropic budgets, forming strategic alliances, etc. CSR
is becoming as much as anything a way of thinking about and doing business.
Corporate investment decisions driven by quarterly profit earnings are short-sighted
and sacrifice long-term wealth creation.
 Fifth, it is no longer the owner or the CEO the one which decides to write the check,
but it is the collective commitment of all the corporation from the CEO until the last
employee; it is precisely the employees’ satisfaction one of the objectives of CSR.
There is an increasing awareness of CSR among the workforce.
 Sixth, before a social activity generally dissociated from the cooperation, the trend is
that the activity be totally related with the core business of the cooperation, its
products or services (for instance when an electronic corporation decides to train the
students of a school on the use of computers).
 Seventh, the establishment of a social norm to do good. As William Clay Ford Ford
Motor Company CEO “there is a difference between a good company and a great
company. A good company offers excellent products ands services. A great company
also offers excellent products and services but also thrives to make the world a better
place”. From the philosophy of “doing good to look good”, to the conviction of
“doing well and doing good”.
 Eighth, it is clear today that CSR’s success requires the decisive cooperation of the
government and business in a strong symbiosis. This is particularly clear in
developing countries. As the World Summit on Sustainable Development
(Johannesburg 2000) recognized, partnership between business, government and civil
society is the key to the progress we need on sustainable development.
 Ninth, every time sectoral projects on CSR are materializing like in the mining
industry, the energy industry or the apparel industry, for example, the Multi-fibre
Arrangement Forum, or like the Equator Principles where a group of large financial
institution decided to impose conditions particularly environmental conditions to their
clients’ projects.
 Ten. Up to now CSR has been something voluntary (voluntary to adopt and voluntary
to comply with). Today there is a big debate where CSR should remain voluntary or
should become compulsory. Many believe for example that the limitation off the CO2
in the atmosphere emissions will not stop voluntary unless it becomes a legal duty.

All of these trends mean that businesses need to manage their environmental and social
impacts much better: corporate responsibility has to cease being a bolt-on to business
operations; and instead be built-in to business purpose and strategy. This involves a clear link
to business values and culture; strong leadership form the top; and the active engagement of
stakeholders.
 Some of the drivers pushing business towards CSR include:

1. The shrinking role of government

In the past, governments have relied on legislation and regulation to deliver social and
environmental objectives in the business sector. Shrinking government resources,
coupled with a distrust of regulations, has led to the exploration of voluntary and non-
regulatory initiatives instead.
2. Demands for greater disclosure

There is a growing demand for corporate disclosure from stakeholders, including

customers, suppliers, employees, communities, investors, and activist organizations.

3. Increased customer interest

There is evidence that the ethical conduct of companies exerts a growing influence on
the purchasing decisions of customers. In a recent survey by Environics Internationals, more
than one in five consumers reported having either rewarded or punished companies based on
their perceived social performance.

4. Growing investor pressure

Investors are changing the way they assess companies' performance, and are making
decisions based on criteria that include ethical concerns. The Social Investment Forum
reports that in the US in 1999, there was more than $2 trillion worth of assets invested in
portfolios that used screens linked to the environment and social responsibility. A separate
survey by Envirnics Internationals revealed that more than a quarter of share-owning
Americans took into account ethical considerations when buying and selling stocks. (More on
socially responsible investment can be found in the 'Banking and investment' section of the
site.)

5. Competitive labour markets

Employees are increasingly looking beyond pay checks and benefits, and seeking out
employers whose philosophies and operating practices match their own principles. In order to
hire and retain skilled employees, companies are being forced to improve working conditions.

6. Supplier relations

As stakeholders are becoming increasingly interested in business affairs, many

companies are taking steps to ensure that their partners conduct themselves in a socially
responsible manner. Some are introducing codes of conduct for their suppliers, to ensure that
other companies' policies or practices do not tarnish their reputation.

Some of the positive outcomes that can arise when businesses adopt a policy of social
responsibility include:
 Company benefits:
• Improved financial performance;
• Lower operating costs;
• Enhanced brand image and reputation;
• Increased sales and customer loyalty;
• Greater productivity and quality;
• More ability to attract and retain employees;
• Reduced regulatory oversight;
• Access to capital;
• Workforce diversity;
• Product safety and decreased liability.
Benefits to the community and the general public:

 Charitable contributions;
 Employee volunteer programmes;
 Corporate involvement in community education, employment and homelessness
programmes;
 Product safety and quality.

Environmental benefits:

 Greater material recyclability;

 Better product durability and functionality;
 Greater use of renewable resources;
 Integration of environmental management tools into business plans, including life-
cycle assessment and costing, environmental management standards, and eco-
labelling.
 An
Assignment Report (3)

Title- Brief Profile of contract of

sale of Goods Act , 1930

SUBMITTED TO:
Anil chandhok

SUBMITTED BY :
Tanuj Bhasin
18 BBA 1462

The sale of goods act, 1930

Contract of Sale of Goods:
It is a contract whereby the seller transfer or agrees to transfer the property in goods to the
buyer for a price.

Essentials of Contract of Sale

 There must be at least two parties: -

 Seller and buyer, as the property in the goods have to pass from one person to another.
The buyer and the seller must be different persons. A person cannot by his own
goods.

 Transfer or Agreement
 Transfer or Agreement to transfer the “ownership” of goods

 Subject matter must be “Goods”

 Sale of immovable property is not covered by this Act.

 Consideration is price
 Consideration in a contract of sale, has to be the legal tender. Where goods are
exchanged for goods, it would amounts to Barter, not sale. Similarly, where there in
no consideration, it would be a gift and not a sale. Where goods are sold for a price,
which is to be paid partly in cash and partly in goods, that is a sale.

 Absolute or qualified: - A contract of sale may be absolute or conditional.

 All other essentials or a valid contract must be present.

Goods
 1. Goods means every kind of movable property other than actionable claims and money
and includes stock and shares, growing crops, grass, and things attached to or forming
part of the land which are agreed to be severed before sale or under the contract of
sale.
2. Thus, immovable are not goods and the Act does not apply to sale of immovable
property like land, building, plant erected at site etc. Thing attached to earth like
‘Standing crop or ‘tree’ is ‘goods’ only when it is agreed to be served before sale or
under contract of sale.
3. Actionable claim is a claim which can be enforced by going to the court. An overdue
debt is an actionable claim, since the creditor can take action against the debtor to
enforce the claim by going to a court of law. Thus, an actionable claim cannot be
bought and sold as goods, though it can be assigned.

Existing goods are such goods as are in existence at the time of the contract of sale, i.e.,
those owned or possessed by the seller.

Future goods: means goods to be manufactured or produced or acquired by the seller after
making the contract of sale. Thus, under the Act, a contract of sale of future goods, e.g. 1,000
quintals of potatoes to be grown on A’s field, is not illegal, though the actual sale of future
goods is not possible. This is an example of “agreement to sell”

Contingent Goods: - Goods, the acquisition of which by the seller depends upon
happening/ non – happening of an uncertain event (contingency). They are also a type of
future goods. E.g.: x agrees to sell 10 units of an article provided the ship, which is bringing
them reaches the port safely.

Specific, ascertained and unascertained Goods:

(i) Specific Goods: - Goods identified and agreed upon at the time a contract
of sale is made Eg: A car, a table.
(ii) Ascertained Goods: - Goods identified subsequent to the formation of the
contract of sale. The terms, ascertained and specific are commonly used
for the same kind of goods. The goods are ascertained when out of a mass
 of unascertained goods, the quantity contracted for is identified and set
aside, Eg: - A, a TV shop owner, agreed to sell B a particular model TV
identified by the customer out of the several TVs on display.
(iii) Unascertained Goods: - Goods not identified at the time of making of the
contract of sale. They are no definite and specific. They are goods defined
by description only. Eg. A visits a TV sales showroom and agrees to buy a
TV out of the 50 models on display. The shop owner agrees to sell. This
sale agreement is for unascertained goods as the specific TV is yet to be
identified.

Sale and Agreement to sell

In sale of goods, the property in them is transferred from the seller to the buyer immediately,
but whereas in an agreement of sale, the property in the goods passes only after the seller has
fulfilled certain conditions subsequently.

Sale and Agreement to sell’ distinguished

Sale Agreement to sell

Time of transfer of ownership
The transfer of ownership passes from The transfer of ownership passes from
seller to buyer immediately. seller to buyer subsequent to the formation
of agreement to sell.
Risk of loss of goods
The goods are at the risk of the buyer as The goods are at the risk of the seller until
soon as sale takes place. the agreement to sell becomes a sale.
Remedies for breach by seller
In case of breach by seller, the buyer has In case of breach by seller, the buyer’s
the legal right to obtain the possession of remedy is to claim damages for non –
the goods. performance of the contract.
Remedies for breach by the buyer
In case of breach by the buyer, the seller In case of breach by the buyer, the seller
has the legal right to sue the buyer for can not sue the buyer for recovery of price
recovery of price of goods. of goods. His right is limited to claim
damages.

Right of resale
In case of sale, the seller has no legal right In case of agreement to sell, the seller can
to resell the goods. resell the goods to any other person.
Insolvency of the buyer
If the buyer becomes insolvent, the official If the buyer becomes insolvent, the official
assignee/ official receiver shall have a right assignee/ official receiver shall have no
over the goods. right over the goods.
Insolvency of the seller
If the seller becomes insolvent, the official If the seller becomes insolvent, the official
assignee/ official receiver shall have no assignee/ official receiver shall have a right
right over the goods. over the goods.
Nature of rights
In case of ‘sale’ the buyer gets the right In case of ‘agreement o sell’ the buyer gets
against the whole world, i.e.. jus in rem. the rights only against the seller, i.e.. jus in
personam.