A Study On The Application Of Sale Of Goods Act In Bangladesh.

1.Introduction : This
Act may be called the Sale of Goods Act, 1930. It extends to
the whole  of Bangladesh. 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
a price. There may be a contract of sale between one part-owner and another.
It is expedient to define the law relating to the sale of goods. The Act came
into force 1st July, 1930. There should be an offer to buy or sell goods for a price. Acceptance
of such offer. The contract may provide for immediate delivery or payment or both. In case payment
or delivery by instalment, both delivery or payment can be postponed.

2. What Is Sale Of Goods Act,1930? : It provides for the setting up of contract where the seller
transfers or agrees to transfer the title (ownership) in the goods to the buyer for consideration. It is
applicable all over India. Under the act, goods sold from owner to buyer must be sold for a certain
price and at a given period of time. A contract of sale of goods results, like any other contract, by an
offer by one party and its acceptance by the other. Thus, it is a consensual transaction. The parties
to the contract enjoy unfettered discretion to agree to any terms they like relating to delivery and
payment of price, etc. The Act leaves the parties free to modify the provisions of the law by
express stimulations.

Reference :M C Kuchha, Vivek Kuchhal. MERCANTILE LAW.(Eight Edition,2008). Published By VIKAS

PUBLISHING.

3.Application As To Formation Of Contract Of Sale Of Goods :Section 4(1) of the Sale Of Goods
Act defines a contract of sale of goods as “a contract whereby the seller transfers or agrees to
transfer the property in goods to the buyer for a price”. This definition reveals many essential
elements of a contract of sale of goods. Such as : (1) Movable Goods, (2)Movable Goods for
Money,(3)Two Parties, (4) Formation of the contract of sale, (5) Method of forming the contract,
(6) The term ls of contract. The terms “Goods” includes every kind of moveable property except
Actionable Claims and Money. Goods may be classified into three types : Existing Goods, Future
Goods and Contingent Goods.

Reference : :M C Kuchha, Vivek Kuchhal. MERCANTILE LAW.(Eight Edition,2008). Published By

VIKAS PUBLISHING. ARUN KUMAR SEN, JITENDRA KUMAR MITRA.COMMERCIAL LAW AND
INDUSTRIAL LAW.(25th edition 2008,Published By WORLD PRESS.

4.Application As To Stipulation Of The Contract Of Sale Of Goods: A stipulation in a contract of sale

is either a condition or is a warranty depending in either case on the construction of the contract. A
stipulation may be a condition, though called a warranty in the contract. A condition is a stipulation
which is essential to the main purposes of the contract, whereas a warranty is a stipulation which is
collateral to the main purpose of thr contract. A breach of condition may be treated as a breach of
warranty. But a breach of warranty cannot be treated as a breach of condition. The breach of a
condition gives the aggrieved party the right to repudiate the contract and also to claim damages,
whereas the breach of warranty gives the aggrieved party a right to claim damages only. Conditions
and warranties may be either express or implied. They are said to be express when at the will of
the parties they are inserted in the contract, and they are said to be implied when the law presumes
their existence in the contract automatically though they have not been put into it in express
words.

Reference :M C Kuchha, Vivek Kuchhal. MERCANTILE LAW.(Eight Edition,2008). Published By VIKAS

PUBLISHING.

5.Application As To Transfer Of Ownership Of Goods : The phrase “transfer of property in goods “

means transfer of ownership of the goods. Sale of goods involves of ownership of property from the
seller to buyer. It is necessary to determine the precise moment of time at which the ownership of
the goods passes from the seller to the buyer. For this there are two reasons: (1) Risk passes with
property, (2) Passing Of Risk. Section 26 of the Sale of Goods Act, 1930 states the goods are the
owner's risk if the property in them has not been transferred to the buyer. It is also possible that
that the title, risk, and possession of the property pass independent of each other from the seller to
the buyer in a sale's transaction. The rules regarding transfer of property following two heads : (1)
Transfer of property in specific or ascertained goods.(2) Transfer of property in unascertained and
future goods. The general rule relating to the transfer of title on sale is that “the seller cannot
transfer to the buyer of goods a better title than he himself has”.If the title of the seller is defective
the buyer's title will also be subject to the same defect. Section 27 also lays down to the same
effect and provides that “where goods are sold by a person who is not the owner thereof and who
does not sell them under the authority or with the consent of the owner, the buyer acquires no better
title to the goods than the seller had.

Reference :M C Kuchha, Vivek Kuchhal. MERCANTILE LAW.(Eight Edition,2008). Published By VIKAS

PUBLISHING.

6.Application On As To Performance Of Contract Of Sale Of Goods : Section 2(2) of the Sale Of

Goods Act says that Delivery of goods means voluntary transfer of possession of goods from one
person to another. The Sale Of Goods Act lays down the following rules regarding delivery and
other matters concerning the performance of the contract of sale : (1) Possession of buyer, (2)
Effect of part delivery, (3) Application for delivery, (4) place of delivery, (5) Time of delivery ,
(6)Possession of Third Person,(7) Expenses of Delivery, (8) Delivery of the wrong Quantity . The
mere fact that the buyer has taken the delivery of the goods does not amount to acceptance of
them. According to section 42, the buyer is deemed to have accepted the goods in either of the
following circumstances, namely : (1) when he intimates to the seller that he has accepted the
goods. Before intimating about accepting the buyer has a right, under section 41, to examine and
test the goods in order to be sure as to whether they are in conformity with the contract regarding
quality etc.(2) when he does ant act in relation to the goods which is inconsistent with the
ownership of the seller.

Reference : ARUN KUMAR SEN, JITENDRA KUMAR MITRA.COMMERCIAL LAW AND INDUSTRIAL
LAW.(25th edition 2008,Published By WORLD PRESS.

7.Application As To Contractual Dispute and Remedial Measures :The seller of goods is deemed
to be an ‘unpaid seller' (a) when the whole of the price has not been paid or tenderer, or (b) where a
bill of exchange or other negotiable instrument has been received as a conditional payment An
unpaid seller has two-fold rights : (1) Rights of unpaid seller against the goods, and (2) Rights of
unpaid seller against the buyer personally. The buyer has many rights against the seller for breach
of contract. Such as : (a) Suit for damages for non- delivery, (b) Suit for specific performance, (c) Suit
for damages for breach of warranty, (d) Suit for rescission of contract and for damages for breach
of condition, (e) Suit for recovery of the price together with interest.

Reference : M C Kuchha, Vivek Kuchhal. MERCANTILE LAW.(Eight Edition,2008). Published By

VIKAS PUBLISHING.

8.Conclusion : This Act show the relationship between the buyer and seller and covers such issue
as the correct and duties of the parties and their remedies in the result of a breach it help a lot
for the customer to protect them self from getting cheated. From this the seller also has a
difficulty to cheat their customer for their own use (profit). Trade and commerce has been
changed in various ways but this Act still same and having lot of gap to cope up with the present
time.

Reference : All Answers ltd, 'Essay on The Sale of Goods Act 1979' (Lawteacher.net, December 2021)
<https://www.lawteacher.net/free-law-essays/commercial-law/definition-of-sale-of-goods-act-
commercial-lawvn-essay.php?vref=1> accessed 17 December 2021.