[Edn. 2008(Pb)]
Contents
CHAPTER 1
The Sale of Goods Act, 1930
Introduction
1
Statement of Objects and Reasons
Charts
6
CHAPTER 2
Definitions and Essentials of Sale
1. Short title, extent and commencement
8
2. Definitions
2(i) Buyer and Seller
9
2(ii) Delivery
10
2(iii) Documents of Title to Goods
2(iv) Bill of Lading
2(v) Dock Warrant
2(vi) Warehouse-Keeper's Certificate
2(vii) Delivery Order
11
2(viii) Railway Receipts
2(ix) Multimodal Transport Document
2(x) Goods
CHAPTER 3
Formation of the Contract
1. Essentials of Sale
13
2. Bilateral Contract
Q. Define sale with the help of relevant cases
14
3. Money consideration
15
Q. What do you mean by money consideration?
4. Sale and Contract for Work and Material
5. Goods
Q. Write note on `goods'
6. Sale and Agreement to Sell
16
Q. Distinguish between sale and agreement to sale
7. Sale and Hire Purchase
Q. What is the difference between sale and hire purchase?
8. Formalities of the Contract
17
9. Subject-matter of Contract
18
10. Effect of Damage
Q. What do you mean by effect of damage? Discuss it in light of the provision given in section 7 of the Act.
Q. What are the effects on contract if goods perish before making the contract?
11. Goods perishing before Sale but after Agreement to Sell
19
12. Price
Q. Discuss the determination of price with the help of relevant case.
20
13. Agreement to Sell at Valuation
CHAPTER 4
Conditions and Warranties
1. Stipulations as to Time
23
Q. "Time stipulation for the payment is not essence of the contract" substantiate with relevant example.
1.1 Stipulations as to Time of Payment
1.2 Stipulation as to Time of Performance of other Terms
Q. In which cases time is considered as essence of the contract? Explain.
24
2. Condition and Warranty
Q. Discuss conditions or warranties of a contract of sale as given in section 12 of the Sale of Goods Act, 1930.
2.1 Baldry v. Marshall, (1925) 1 KB 260: (1924) All ER Rep 515
25
2.2 We can find the illustration of Warranty in the case; Harrison v.Knowles and Foster, (1917) 2 KB 606: (1918-19) All ER Rep 306
3. Condition to be Treated as Warranty
26
3.1 Waiver by Buyer
3.2 Acceptance of Goods by Buyer
4. Implied undertaking as to title etc.
Q. Can a buyer claim the price of goods if it was found on possession that it was stolen and seller sold it knowingly?
27
5. Sale by Description
28
Q. Under the provision of section 15 of the Sale of Goods Act discuss the sale by description. Cite relevant cases also.
6. Sale by Sample
30
Q. Discuss the provision of section 15 of the Sale of Goods Act,which deals with `Sale by Sample'.
7. Conditions implied by way of Exceptions to Rule of Caveat Emptor
Q. What is the significance of the exceptions of the rule `caveat emptor' in contract?
31
8. Division of section 16
32
8.1 Fitness for Buyer's Purpose
Q. What do you mean by fitness for buyer's purpose under section 16(1).
8.1(i) Sale under Trade Name
33
8.1(ii) Sale to consumer statutory changes
34
8.1(iii) Sale by Agent
35
8.2 Merchantable Quality [Section 16(2)]
Q. What is merchantable quality of goods.
8.2(i) Purchase by Description
Q. Write note on "Purchase by Description".
8.2(ii) Marketability
8.2(iii) Sale of Pictures: A General Observation
36
8.2(iv) Packing
8.2(v) Goods should not violate Applicable Statutes
8.2(vi) Test of Merchantable Quality
37
Q. Define and discuss the test of Merchantable Quality".
8.2(vii) Statutory Definition of Merchantability
8.3 Conditions Implied by Trade Usage [Section 16(3)]
38
8.4 Express Warranty [Section 16(4)]
9. Sale by Sample
Q. Discuss `Sale by Sample' with the help of relevant cases.
39
9.1 Bulk to Correspond with Sample
9.2 Opportunity to compare Bulk with Sample
9.3 Goods free from any defect, rendering them unmerchantable
Q. Discuss under section 17 the requirement of goods to be merchantable.
9.4 Buyer's State of Knowledge about Goods
40
Q. Upto what extent a buyer is responsible regarding his knowledge about the goods? Explain it with the help of relevant cases.
41
CHAPTER 5
Effects of the Contract
1. Introduction
44
Q. Define `ascertained goods' and differentiate it with `unascertained goods'.
2. Importance of transfer of property
45
3. Property passes when intended to pass
Q. What are the circumstances in which it can be said that the goods have been passed?
4. Sale of Specific Goods
47
5. Meanings of terms
48
5.1 Specific Goods
5.1(i) Shankar Das v. Bhanna Ram, AIR 1926 Lah 606
5.1(ii) Kursell v. Timber Operators and Contractors Ltd.,(1926) 135 LT 223
49
5.1(iii) Aluminium Industries Ltd. v. Minerals and Metals Trading Corporation of India Ltd., MANU/TN/0836/1997 : AIR 1998 Mad 239
5.2 Deliverable State
Q. What do you mean by `deliverable state' of goods? Discuss it in the light of provision of section 2(3).
50
5.3 Unconditional Contract
6. Goods to be put in Deliverable State
51
Q. What do you mean by "to put the goods in deliverable state".Discuss it with the help of relevant cases.
7. Goods to be Weighed or Measured
(a) Zagury v. Furnell, (1809) 2 Camp 240: 11 RR 704
52
(b) Sanwick v. Sothern, (1839) 48 RR 740
(c) Shoshi Mohun Pal Chowdhry v. Nobo Kristo Poddar, (1878) 4 ILR Cal 801
8. Sale of Unascertained Goods and Appropriation (Section 23)
8.1 Some more points on Appropriation
53
Q. Why it is mandatory on part of seller to sort out the goods for appropriation of goods.
8.2 Appropriation without Buyer's Assent
54
8.3 Buyer's Assent may be Express or Implied
8.4 Appropriation _ Unconditional and Goods of Contract Quality
9. Delivery to a Carrier
55
• Acknowledgement by Bailee
10. Goods Sent on Approval or `On Sale or Return _ Section 24 of the Act says as
56
10.1 Delivery of Goods on Sale or Return
Q. Is it essential on the part of buyer to approve or `on sale or return' before the goods passes to the buyer?
10.2 Risk of Loss or Damage
10.3 Delivery on Sale or Return and Conditional Sale
57
11. Reservation of right of disposal
Q. Explain the provision of section 25 of the Sale of Goods Act as—"Where there is a contract for the sale of specific goods or where goods are subsequently appropriated to the contract, the seller may,by the term of the contract or appropriation reserve the right of disposal of the goods until certain conditions are fulfilled."
12. Transfer of Risk
58
Q. When it is decided that risk of goods has been transferred to buyer?Discuss it with the help of relevant cases.
12.1 Separation of Risk from Property
12.2 Delay in Delivery of Goods
12.3 Express Agreement
59
CHAPTER 6
Transfer of Title
61
2. Buyer is without Title when Sale is by a Person who is not the Owner of the Title
62
Q. Explain the meaning of—Buyer is without title when sale is by a person who is not the owner of the title."
3. Nemo Dat Quod Non Habet
63
Q. Explain the maxim nemo dat quod non habet
4. Estoppel
Q. What do you mean by estoppel in the sale of goods?Explain with the help of relevant cases.
64
• Estoppel by Negligence
5. Sale by Mercantile Agent
65
5.1 Mercantile Agent
Q. Define `mercantile agent'.
5.2 In Possession as Mercantile Agent
66
5.3 With Owner's Consent
5.4 Must sell while acting as Mercantile Agent
5.5 Good faith and without Notice
67
6. Sale by one of Joint Owners
7. Sale by Person in Possession under Voidable Contract
7.1 Seller under Voidable Title
68
Q. What do you mean by sale by person who is in possession of goods under voidable contract?
7.2 Goods must be Obtained in Pursuance of a Contract
70
8. Seller or Buyer in Possession after Sale
71
8.1 Seller in Possession after Sale [Section 30(1)]
72
Q. Explain the conditions as mendtioned under section 30(1).
8.2 Buyer in Possession before Sale [Section 30(2)]
73
CHAPTER 7
Performance of the Contract
76
2. Duties of Seller and Buyer
77
3. Payment and Delivery, two Concurrent Conditions (Section 32)
Q. Do you agree with the facts that payment and delivery in sale of goods are two concurrent conditions, to be fulfilled in sale?
78
• Readiness and Willingness
4. Delivery
4.1 Delivery of Goods
Q. What is symbolic delivery? Explain it with the help of relevant cases.
79
4.2 Acceptance and Receipt
4.3 Symbolic Delivery
4.4 Constructive Delivery
Q. What is constructive delivery? Discuss it with the help of some cases.
80
5. Effect of Part Delivery (Section 34)
81
Q. Explain the effect of part delivery with relevant case laws.
6. Buyer to apply for Delivery
• Buyer's Duty to Apply for Delivery
7. Rules to Delivery [Section 36]
82
Q. Define the rules of delivery.
7.1 Place of Delivery
83
Q. What are the rules of delivery of goods? Under provisions of section 36 of the Sale of Goods Act?
7.2 Time for Delivery
7.3 Duty of Seller to Dispatch
7.4 Delivery `as required'
84
7.5 Attornment of Bailee
7.6 Expenses of Delivery
8. Delivery of Wrong Quantity
8.1 Delivery of less Quantity of Goods
85
8.2 Delivery in Excess of Contract Quantity
8.3 Delivery of contractual goods together with others
86
9. Instalment Deliveries
9.1 Instalment Deliveries
9.2 Entire Contracts
87
9.3 Severable Contracts
9.4 Failure in paying an Instalment
Q. What would be the effect of non-payment of an instalment on contract? Discuss with case laws.
10. Delivery to Carrier or Wharfinger
10.1 Delivery to Wharfinger or Carrier
88
10.2 Duty of Seller on Delivering Goods in a Carrier
10.3 Transit by Sea
89
11. Risk where Goods are delivered at a Distant Place
12. Buyer's Right of Examining the Goods
90
Q. Can a buyer reject the goods after delivery if he finds that the supplied goods do not commensurate with the quality agreed at the time of contract? Explain it.
13. Acceptance
91
Q. When it can be said that the goods have been accepted by the buyer? Explain it with the help of relevant cases.
• Time for Rejection
92
14. Buyer not bound to return Rejected Goods
93
Q. Is buyer bound to return the rejected goods?
15. Liability of Buyer for Neglecting or Refusing Delivery of Goods
CHAPTER 8
RIGHTS OF UNPAID SELLER AGAINST THE GOODS
97
2. `Unpaid seller' defined
2.1 Unpaid Seller
2.2 Payment by Bill _ Conditional Payment
98
2.3 Payment by Credit Card
3. Unpaid Seller's Rights
99
Q. What are the rights of unpaid seller?
• Rights where Property Remains in the Seller
4. Seller's Lien
100
4.1 Seller's lien
4.2 When lien exists
5. Part Delivery
5.1 Lien Available though Seller has Parted with Possession of Part of the Goods 100
5.2 Instalment Deliveries
6. Termination of Lien
101
6.1 Loss of Lien
6.2 Buyer Tortiously obtaining Possession
6.3 Waiver of lien
6.4 Waiver of lien by Wrongful Acts
102
7. Right of Stoppage in Transit
Q. What are the grounds to invoke the provisions of section 50 if the seller wants to stop the goods in transit?
8. Duration of Transit
Q. When a transit deemed to be at an end. Explain in the light of provisions of section 51.
103
8.1 Delivery to the Buyer [Section 51(1)]
8.2 End of Transit before its Destination [Section 51(2)]
104
8.3 Acknowledgement to the Buyer [Section 51(3)]
8.4 Rejection of Goods by Buyer [Section 51(4)]
8.5 Delivery to a Ship Chartered by a Buyer [Section 51(5)]
105
8.6 Wrongful refusal to deliver the Goods [Section 51(6)]
8.7 Part Delivery [Section 51(7)]
9. How Stoppage in Transit is Effected (Section 52)
106
9.1 Notice to Principal
Q. What are the ways by which the unpaid seller stops the goods in transit?
9.2 Duties of the Carrier and the Seller
107
10. Effect of Sub-sale or Pledge by Buyer [Section 53]
10.1 Seller's rights do not get affected by the Buyer's dealing with the goods
10.2 Transfer of the Bill of Lading
108
Q. Discuss `transfer' of the bill of lading with the help of relevant cases.
10.3 Good Faith
109
11. Sale not Generally Rescinded by Lien or Stoppage in Transit (Section 54)
11.1 Further rights of the Unpaid Seller against the Goods
11.2 Contract not Rescinded by the Buyer's Default in Payment
110
11.3 The Seller's Right to Resale
11.4 Lawful Resale by the Seller
CHAPTER 9
Suits for Breach of Contract
112
2. Suit for Price (Section 55)
3. Damages for non-acceptance [Section 56]
113
• Damages for Breach of Contract
114
Q. Discuss `damages for breach of contract' and cite some cases relevant to it.
4. Damages for non-delivery (Section 57)
Q. What are the remedies available for a buyer if he doesn't get delivery of goods from the seller.
115
• Duty of Mitigation
5. Specific Performance (Section 58)
116
Q. What is specific performance? Describe it under the provision of section 58 of the Sale of Goods Act.
6. Remedy for Breach of Warranty (Section 59)
6.1 Notice to Seller of Defective Condition
117
6.2 Resale by Buyer
118
6.3 Acceptance of Goods without Inspection
7. Repudiation of Contract before Due date (Section 60)
7.1 Measure of Damages
7.2 Measure of Damages when Goods are to be Delivered by Instalments
119
8. Interest by way of Damages and Special Damages (Section 61)
CHAPTER 10
Miscellaneous
1. Exclusion of Implied Terms and Conditions (Section 62)
122
1.1 By Express Contract
1.2 Course of Dealing
123
1.3 Trade Usage
124
2. Section 63 of the Act speaks about the Reasonable time
3. Auction Sale
3.1 Aim
125
3.2 `Ring' or `knock-out'
126
3.3 Bidder's Right to Withdraw Bid
3.4 Auctioneer's Right not to Accept any Bid
4. In Contracts of Sale, Amount of Increased or Decreased Taxes to be Added or Deducted (Section 64A)
5. Repeal
127
6. Savings
128
CHAPTER 11
Questions and Answers
• Table of Cases
138
• Section Index
145
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