Sales of Goods Act :1930

Part B
Dr. Vilas Kulkarni
 Coverage
• Provisions related with Conditions & Warranties.
(Chapter II Section11-17)
• Provisions related with Transfer of Property/Ownership.
(Chapter III Section 18-30).
• Provisions relating performance of the contract. &
Delivery & its Rules.(Chapter IV Section 31-44).
• Unpaid Seller & His Rights (Chapter V Section 45-54).&
Suit for breach of Contract (Chapter VI Section 55 to
Section 61)
• Auction Sale Chapter VII Section 64.
 Conditions & Warranties.
• Provisions related with Conditions &
Warranties.(Chapter II Section11-17)
• Section 11.Stipulation as to Time.
• Section 12. Definition of Condition & Warranty
• Section 13. When the conditions to be treated
as Warranty.
• Section 14. Implied undertaking as to title.
• Section 15. Sale by Description.
• Section 16. Implied undertaking to the quality
of fitness.
• Section 17. Sale by sample.
 Condition?(sec.12(2))
A condition is a stipulation essential to the main purpose of the contract, breach of which gives rise to a right to treat the contract as repudiated or broken.
 Warranty? [Sec.12(3)]

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 or broken.
 
 Types of Condition
• Expressed Conditions.
• Implied Conditions.
• Verbal Conditions.
 Types of Warranties.
• Warranty as to title.
• Warranty to sale by Description.
• Sale by sample.
• Sale by Sample as well as by Description.
• Warranty as to the quality or Fitness.
• Warranty as to quite the possession or free
from encumbrances.
 Difference.
• Section No.
• Meaning/ Definition.
• Stipulation.
• Exercise of option as to the treatment.
• Term of Contract.
• Remedy.
• Volume of Compensation.
• Impact on Title.
 Transfer of Property
• Chapter III (Section 18-30): Effect of the
Contract.: There are two techniques.
• A)Transfer of property as between Seller and
Buyer.
• B)Transfer of Title.
A)Transfer of property as between Seller and
Buyer.
• Section 18. Goods must be ascertained.
• Section 19. property passes when intended to
pass.
• Section 20. Specific goods in a deliverable state,
• Section 21. Specific goods to be put in to
deliverable state.
• Section 22. Specific goods in a deliverable state,
when the seller has to do anything thereto in
order to ascertain the price.
• Section 23. Sale of uncertain goods &
appropriation delivery in to the carrier.
• Section 24. Goods sent on approval of ‘On sale
or return’.
• Section 25. Reservation of right of Disposal.
• Section 26. Risk prima facie passes with
property.
 Transfer of Title
• Section 27. Sale by person and not by owner.
• Section 28. Sale by one of joint owner.
• Section 29. Sale by person in possession under
voidable contract.
• Section 30. seller or Buyer
 Performance of Contract.
• Chapter IV Section 31-44.
• The performance of contract actually takes
place with help of :
• A)By Performing the duties by both Seller &
Buyer (Section 31)
• B)By understanding by both Seller & Buyer
that payment & Delivery are concurrent
conditions. ( Section 32)
• C) By Delivery and observing various rules of
Delivery. ( Section 33)
• Delivery of Goods: Section 2(2): It is an act of
voluntary transfer of possession of goods from
one person to another.
• Delivery of Goods may be made by doing
anything which the parties agree shall be
treated as delivery or which has the effect of
• Putting the goods in the possession of the
buyer or of any person authorized to hold
them on his behalf.
• Types of Delivery: a) Physical Delivery
• b) Symbolic Delivery
 Rules of Delivery
• Section 34. Effect of part delivery
• Section 35. Buyer to apply for delivery.
• Section 36. Misc rules of delivery.
• Section 37. Delivery of wrong quantity.
• Section 38. Installment delivery.
• Section 39. Delivery to carrier.
• Section 40. Risk factor of delivery of goods at distant
places.
• Section 41. Buyers right of examining the
goods.
• Section 42. Acceptance of Goods.
• Section 43. Buyer not bound to return the
rejected goods.
• Section 44. Liability of buyer for neglecting or
refusing the delivery of the goods.
 Unpaid Seller.
• Chapter V (Section 45 )
• Unpaid Seller: means the person who has not
been paid the total worth of the goods he
sold.
• Who has been paid partly.
• Whose instrument is dis honored by an
authorized person when he deposited.
• Buyer has lost his capacity to pay to seller.
 Rights of Unpaid Seller.(Sec.46)
• A) Right against Goods.
• B) Right against person/Buyer.
• A) Rights against Goods: a) To lien on goods.
Section 47, 48,49
• To stop the goods in transit. Section 50,51,52.
• To sell the goods to the third party. Section 53.
• B)Rights against person/ Buyer.
• a) Suit for Price: Section 55.
• b) Suit for Damage :Section 56 & 57: Damage for
non acceptance & Damage for non delivery.
• c) Suit for the specific performance: Section 58.
• d) Remedy for the breach of Warranty: Section
59.
• e) Repudiation of Contract before due date:
Section 60.
• ) Suit for Interest: Section 61
 Auction Sale ( Section 64)
• Definition: It is one of the type of special sale
initiated either by seller or by third party
appointed to conduct this sale to receive or
recover the desired amount from the other
person having an aspiration to achieve the
same.
• Techniques: a) Ordinary Auction.
• Legal Auction.
 General/ Ordinary Auction.
• In this case the goods are put up in lots for the
sale and each lot is prima facie deemed as
separate contract with new buyer buying each
different lot.
• In this sale rights of seller are reserved on his
goods.
 Legal Auction sale.
• This auction sale is initiated either by private
auctioneer or the auctioneer appointed by legal
authority. In this sale the legal rights of the seller are
withdrawn.
• Prerequisites: Public Notice b) appointment of
auctioneer c) fixing of base figure d) avoiding proxy
bidders during auction sale e)use of customary
method of hammer to declare end of complete
auction sale f) Legal documentation of transfer of
ownership g) other formalities.
Difference between sale and Auction Sale.

• Section No.
• Meaning or definition.
• Public Notice.
• Presence of legal authority.
• Physical availability of goods.
• Legal Remedy.
• Formality of traditional method.
• Bargaining Status.