Sales of Goods Act 1930

Contract of sale= a contract whereby the seller agrees to transfer goods to the
buyer at an agreed price, not only are the goods transferred but the risks and
rewards and the ownership too.

Seller= any person who sells/agrees to sells the goods

Buyer=any person who buys or agrees to buys the goods

Essentials of a valid contract of sale

1. All the requirements of a valid contract must be fulfilled

2. 2 parties must be present
3. There has to be some goods as the subject matter (moveable properties)
4. The property must be transferred to the buyer
5. There must be some price for the goods under question

SALE AGREEMENT TO SALE

Ownership is transferred immediately The ownership will be transferred to

the buyer in the future
Executed contract Executory contract
The buyer is responsible for any loss to The seller is responsible for any loss to
the goods the goods
If the seller refuses to deliver the If the seller refuses to deliver the
goods, the buyer can recover by filling a goods, the buyer can not recover the
suit against the seller goods, but can only claim damages
from the seller
If the buyer refuses to pay the price, If the buyer refuses to pay the price,
the seller can recover it by filling a suit the seller can not recover it but can
against the buyer only claim damages by filling a suit
against the buyer
Sometimes if the physical possession of Generally the possession will be with
the goods is with the seller they will still the seller. But the seller is not supposed
belong to the buyer and the seller to sell to third party incase he does it’s
cannot resell to anyone, in case if he
does the buyer will have the right to
recover it from the third party only if
the third party did not act in good faith.
But if third party acted in good faith
then goods can not be recovered only
damages can be claimed.
In case the buyer becomes insolvent
before paying for the goods, the seller
has to deliver goods to the official
receiver and the receiver will pay him
accordingly.
In case the seller becomes insolvent,
and the goods are taken from him by
the official receiver, in such case the
buyer who has paid for the price is
entitled to recover the goods from the
receiver as he is the owner.
a breach of contract and the original
buyer can claim damages. But he can
not recover goods from the third party
whether third party acted In good faith
or not
In case the buyer becomes insolvent
before paying for the goods, the seller
can refuse to deliver goods to the
official receiver until he is paid the full
price of the goods.
In case the seller becomes insolvent,
and the goods are taken from him by
the official receiver, in such case the
buyer who has paid for the price is NOT
entitled to recover the goods from the
receiver as he is not the owner.

Types of goods:

 EXISTING GOODS
 FUTURE GOODS
 CONTINGENT GOODS

Unpaid seller=If any price whether whole or a portion is not paid that is an unpaid
seller.

RIGHTS OF AN UNPAID SELLER AGAINST GOODS:

A) Where ownership of the goods is transferred to the buyer

B) Where ownership of the goods is not transferred to the buyer
 1. Rights of Lien
2. Right of stoppage in transit
3. Right of resale

RIGHTS OF AN UNPAID SELLER PERSONALLY:

1. Sue the buyer
2. Claim damages
3. Suit for interest

Price= Is the money consideration for the sale of goods. No valid sale can take
place without a price. If no consideration is present then it would be a gift not a
sale. Old and rare coins are not included in the term money. Price can be partly in
terms of cash and partly in terms of valued goods.

Modes of fixing the price:

1. The price may be expressly stated in the contract

2. The contract may provide for the manner in which the price is to be fixed
3. The price may be determined by the course of dealing between the parties
4. If price is not determined by the above 3 modes then the buyer shall pay
the seller a reasonable price
5. The agreement may provide that the price is to be fixed by the valuation of
a third party.