lecture-14 - INTODUCTION TOSALELESSON 14: ACT, 1930...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Learning Outcomes After reading the lesson, you should be able to know: · Contract of Sale of Goods · Formation of Sale of Goods · Difference between Sale and Agreement to Sale Introduction Contract of Sale of Goods We have already studied rules relating to Indian Contract Act, 1872. These rules are applicable to contract of Sales of Goods Act as for as they are not in consistent with the express provi- sions of sales of goods Acts. This Act came into force on first July 1930. The provisions of this Act extends to the whole of India except the state of J&K. certain minor amendments where made in this Act in 1963. Some of the provisions of Indian Contract Act apply to this Act for example the rules relating to Capacity of parties, free consent, agreements in Restaurant of trade , wagering agree- ments and measure of damages. However the definition of consideration stands modified to the extent that in a contract of sale of goods consideration must be my way of ‘Price’, only money consideration. Just like Indian Contract Act, there should be offer and acceptance in the case of sales of goods. The parties to the contract enjoy unfettered discretion to agree to any terms they like, for example delivery of goods and payment of Price etc. The sales of goods Act does not seek to fetter this discretion; it simply lays down certain positive rules of General application for those cases where the parties have failed to contemplate expressly for contingencies which may interrupt the smooth performance of a contract of sale, such as destruction of goods sold, before it is delivered or in solvency of the buyer. However the law gives full freedom to the parties to modify any provisions. Definition of Sale of goods Section 4 (1) the sales of goods Act defines a contract of sale of goods as “A contract where by the seller transfers or agrees to transfer the property in goods to the buyer for a price”. Essential Characteristics of Sale of Goods 1. Two parties: There should be two parties namely the buyer and seller. Incase the students of a Hostel take meals in a mess run by them , there is no contract of sale because the student are undivided joined owners, who are running the mess on cooperative basis. An undivided join owners must be distinguished from a ‘part-owner’ who is a join owner with divisible share. Example supposes X and Y jointly owns a typewriter and X sells the type writer to Y the ownership of type writer goes to Y. Although the general rule is that a person cannot buy his own goods, there is one exemption i.e. where a person’s goods are sold in execution of a decree, he himself may buy them. 2.Transfer of Property: ‘Property’ here means ‘ownership’. Transfer of property in the goods is another essential of a contract of sales of goods. A mere transfer of possession of the goods cannot be termed as sale. To constitute a contract of sale the seller must either transfer or agree to transfer the property in the goods to the buyer. Further, the term ‘property,’ as used in the Sale
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

lecture-14 - INTODUCTION TOSALELESSON 14: ACT, 1930...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online