SALE OF GOODS ACT

Sale Of Goods Act

The Act came into force in 1 July 1930.The provisions of this act extends to whole India expect J&k. Certain minor Amendments were made in this act in 1963
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Definition Of Contract of sale Section 4(1) the sale of Goods Act defines Contract of sale goods as A contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for price

The term Contract of Sale includes both sale and Agreement to sell

Sale:
The contract in which the Property in goods is transferred from Seller to buyer is called Sale

Agreement to sell:
Where the transfer of property is to take place in future or subject to Some conditions to be fulfilled in future is called Agreement to sell.

Essentials Of a Contract Of sale

Two Parties Goods Price Transfer of General Property Essentials Of Valid Contract

Contract of Sale how made

A Contract for Sale is made by an Offer and Acceptance to buy and Sell. The Contract may provide for: Immediate delivery of goods or payment of price or both Delivery or payments by installments or Postponement of delivery or payment or both

Difference Between sale And Agreement to Sell

Basis
Transfer of Property Type of Goods Risk of Loss

Sale

Agreement to Sell

Goods Passes from Goods And Seller to Buyer ownership is with the Seller Existing & Specific future and Goods Contingent goods Loss Falls on buyer Loss falls on Seller

Consequences of The Seller Can sue Seller can only sue breach the buyer for for only Damages payment

Right to Re-Sell Seller Cannot Resell the Goods

Seller Can Re-Sell The Goods

Insolvency of Buyer Insolvency of seller

Seller Can claim Seller is not bound rateable dividend for to part with the price of Goods goods until he is alone paid for Buyer entitled to Buyer can claim recover goods from only the rateable official receiver dividend and not goods

Contract of Sale Vs other Contract

Sale Vs Barter: Goods are Exchanged for Goods is called as Barter deal. Goods are transferred from seller to buyer for price is called Sale Sale Vs Bailment: In Sale the property of goods is transferred from Seller to Buyer. In bailment there is only transfer of possession from bailor to bailee. The bailee can deal the goods according to directions of bailor

Subject Matter Of contract of sale Goods:

According to Sec2(7) 'goods' means every kind of movable property other than actionable claims and money.

Types Of Goods:
1.Existing goods (a)Specific Goods (b)Generic Goods 2.Future goods 3. Contingent Goods

Existing goods: These are those Goods which are owned by the Seller at time of making contract (a)Specific goods: These are those Goods which are identified by both parties (b)Generic Goods: existing Goods that have not been specially identified by the parties Future goods: Goods that are in possession of the Seller at time of contract

 Contingent

Goods: These are same as

Future Goods , the acquisition of which by seller is dependent on contingency which may or may not happen.

Effect of Destruction of Goods:

Goods perishing before making of contract Goods perishing after the agreement to sell but before the sale is effected

PRICE: The price in contract sale means the money considerations for sale of Goods[sec2(10)]
Ascertainment

of price:

Price in contract of sale may be (a)fixed by the contract itself (b)Fixed in a agreement manner (c)Determined by the course of dealing between the parties. when the price is not determined the buyer have to pay reasonable price depend on circumstances.

Agreement to Sell at valuation: when under agreement to sell price is to be set as per valuation by third party and such third party cannot make such valuation, the agreement is void. Buyer have to pay reasonable price for the goods or part of goods received by him.

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