LEGAL ASPECTS OF

IT BUSINESS
SUBMITTED TO:
SAGAR BEDRE

Assessment-1

Submitted By: Aashi Jadhav

Section: D

PRN NO: Name of Student

20030241206 Aashi Jadhav

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1-What are the legal remedies available to Mc Dowell and company Ltd in this case?

Answer-

Mr. Dowell and Mr. Garg, the buyer and seller, are now in a difficult situation because they
had no idea that the car had been stolen. This is a question that concerns both of them. Mr.
Garg accidently purchased a car from a guy with the registration number (DLSCB-310).
Which was taken and sold to "McDowell's firm.".

 Mr. Garg took 3790000/- Rs. as a condition of contract of sale. And Mc Dowell's
business took possession and ownership of the car. Because the contract has been made, this
transaction will be governed by the Sale of Goods Act of 1930.

 Section 27 of the Sale of Goods Act of 1930 states that if a person who does not have
the rights to sell a good sell it and the buyer buys it, he must pay the price even if he acted in
good faith.

 Under the implied condition of Section 14 of the Sale of Goods Act, one must have
clear title to sell the goods and no issues with the ownership of the goods.

 Furthermore, under implied warranty, i.e., "Warranty as to undisturbed possession of

section 14(2), the buyer shall enjoy the uninterrupted possession" of section 14(2), the buyer
shall enjoy the uninterrupted possession of goods covered by the implied warranty.

 Police have now taken control of the car from Mc Dowell Company, in violation of
section 14(2) of the Sale of Goods Act. Because Mr. Garg was not the legal owner of the car,
the contract became void. In this scenario, Mc Dowell's firm can sue Mr. Garg for damages
and obtain the money back, including interest and charges, to make up for any losses
experienced by Mc Dowell and Co.

 Under the sale of goods act 1930, Rights against breach of contract are-

o Suit for damages (1)

o Suit for price (2)

o Suit for specific performance (3)

o Suit for breach of warranty (4)

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 o Suit for interest (5)

o Repudiation of contract before due date (6)

 McDowell's company can use rights 1, 2, 4, and 5, as well as section 14 breach of

contract, to win the case against Mr. Garg the Seller.

2-Is there a breach of condition under sale of goods Act 1930? What are the conditions
and warranty under sale of goods Act, 1930?

Answer-

Yes, there is a breach of condition under Sale of Goods Act, 1930. In the given case, there are
two breaches that took place that is –
 Breach of Conditions under Section – 14 that is Condition as to title.
 Breach of Warranty that is “Warranty as to undisturbed possession”.

Sale of Goods Act, 1930 defines under Section 12(2) that “A condition 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”. And Warranty states that under Section 12(3) that “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”.

Different types of conditions are –

Expressed Condition
 It is defined as a statement in a legal agreement that says something must be done or exist
in the contract. The conditions which are imperative to the functioning of the contract and
are inserted into the contract at the will of both the parties are said to be expressed
conditions.

Implied Condition
 There are several implied conditions which are assumed by the parties in different kinds
of contracts of sale. Implied conditions are described in Section 14 to 17 of the Sale of
Goods Act, 1930.

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 The implied contracts come under the section 14 to 17 of Sale of Goods Act, 1930 which
are as follow:
o Implied Conditions as Title
o Implied Condition as To Description

Types of warranty are –

Expressed Warranty
 The warranties which are generally agreed by both the parties and are inserted in the
contract, it is said to be expressed warranties.

Implied Warranty
 Implied warranties are those warranties which the parties assumed to have been
incorporated in the contract of sale despite the fact that the parties have not specifically
included them in the contract. Subject to the contract, the following are the implied
warranties in the contract of sale:
o Warranty as to undisturbed possession
o Warranty as to freedom from Encumbrances
o Implied warranty to disclose Dangerous nature of the goods sold

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