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Amity Business School

Amity Business School


MBA ( G), Semester I
Economic and Business Legislation
Monica Suri

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Amity Business School

SALE OF GOODS ACT


OF 1930

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Rights of an unpaid seller

Unpaid seller (section 45)

• Whole price not paid

• B/E has been received as a conditional payment or has been dishonoured

RIGHTS CAN BE ENFORCED


• Against the goods
• And against the buyer personally

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RIGHTS AGAINST THE GOODS:


1.RIGHT OF LIEN (SEC 47 to 49): RIGHT TO RETAIN
POSSESSION AND REFUSE TO DELIVER TILL PRICE IS
PAID.
2. RIGHT OF STOPPAGE OF GOODS (SEC50 to 52):
RIGHT TO STOP WHEN THEY ARE IN TRANSMISSION
WHICH CAN BE DONE
Either by taking actual possession // giving notice of his claim
to the carrier.
3.RIGHT OF RESALE( SEC 54)

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RIGHTS AGAINST THE BUYER


1. SUIT FOR PRICE (SEC 55)

2. SUIT FOR DAMAGES FOR NON


ACCEPTANCE (SEC 56)

3. SUIT FOR INTEREST ( SEC 61)

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Remedies to the Buyer against the Seller


1. SUIT FOR DAMAGES FOR NON-DELIVERY
( SEC 57)
2. SUIT FOR SPECIFIC PERFORMANCE ( SEC 58)
3. SUIT FOR BREACH OF WARRANTY
( SEC 59)
4. SUIT FOR RESCINDING THE CONTRACT
( SECTION 60)
5. SUIT FOR RECOVERY OF PRICE AND
INTEREST ( SEC61)

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CONDITIONS AND WARRANTIES:

Stipulation means a requirement or specified item in an


agreement. It can be of two types:

•Condition
•Warranty

A stipulation is a condition if it is essential to main purpose of


contract.
A stipulation is a warranty if it is collateral to the main purpose
of the contract.

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• TYPES OF CONDITIONS AND WARRANTIES

• Both may be either


• Expressed
• Implied
• Expressed are in the Contract and defined in
terms of sale.

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• IMPLIED CONDITIONS:
1. Condition as to title eg : a stolen car cannot have
a good title.
2.Sale by description eg : selling a new LG
machine as in invoice , but on delivery found to
be second hand.
3. Sale by sample: eg sample of cloth supplied and
given differs. Contract can be avoided by buyer.

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• 4. Sale by sample as well as description

• 5. Condition as to quality or fitness.


• Eg : buying a tweed coat and catching disease.
The seller cannot be guilty.

• 6. Condition as to merchantibility.

• 7. Condition as to wholesomeness

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• IMPLIED WARRANTIES
1. Warranty of quiet possession
2. Warranty of freedom from
encumbrances
3. Warranty as to quality or fitness by usage
of trade
4. Warranty to disclose dangerous nature of
goods
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• FAQ
1. Conditions and warranties are
indispensable to formation of contract.
2. Doctorine of Caveat emptor and it’s
exceptions.
3. What are the various types of goods.

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