Sale of Goods Act

1930
 Background
• Chapter VII of the Indian Contract Act,1872
• Repealed and re-enacted as the Sale of Goods
Act, III of 1930
• Came into effect from 1st July 1930
• Largely based on the English Sale of Goods
Act,1893
• Extends to the whole of India, except Jammu and
Kashmir.
• Does not effect rights, interest, obligations and
title acquired, or accrued before enforcement of
this Act.
What is the contract of sale
of goods?
• Section 4: 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
price.
• Goods
• Transfer of property in goods
• Buyer and seller
• Price
 Self Study
• Sale vs Agreement to sell
• Sale of Goods vs Hire Purchase
• Sale of Goods vs Work, labour and
materials
 Goods
• “Goods” comprise of all kinds of movable
(and not immovable) property , other
than actionable claims and money. It ,
however , includes stocks and shares,
growing crops, grass, and other things
attached to or forming part of the
land(and not the land itself, as it is an
immovable property), which are agreed to
be severed from land before the sale or
under the contract of sale.
Document of title to Goods?
• Railway receipt
• Bill of lading
• Dock Warrant
• Warehouse Keeper’s Certificate
• Warrant or Order for delivery of
goods
 Classification of Goods
(Self Study)
• Existing Goods
• Future Goods
• Contingent Goods
 Price
• Monetary consideration for sale of
goods
• Rules and Mode of fixing Price.
(Section 9)
» Expressly fixed by contract itself
» Fixed in accordance with agreed manner
provided in the contract
» Determined by the course of dealings between
the parties
» Buyer bound to pay a reasonable price
 Doctrine of Caveat Emptor
• A purchases a horse from B. A needed the
horse for riding but did not mention this
fact to B.The horse is not suitable for
riding but is suitable only for being driven
in the carriage.
• A sent some pigs to the market to be sold
by auction. B purchased all the pigs with
all faults and errors of description. A knew
that his pigs were suffering from some
fever but he did not disclose the same to
B. (Ward vs Hobbs)
Exceptions( Self Study)
 Preparation-For Next Class
• Condition and Warranty
– Definition
– Distinguish
– When breach of condition treated as breach of
Warranty
– Implied Conditions
– Implied Warranty
 Preparation-For Next Class
• Transfer of Property
– Meaning
– Importance of Knowing the exact time of passing
of property
 Preparation-For Next Class
• Performance of Contract of sale
– Delivery
– Rules of delivery
 Preparation-For Next Class
• Rights of Unpaid Seller
– Please go through the entire chapter