In this presentation, we will help you to understand the essentials of sales contract; difference among sales and agreement, future goods, contingent goods etc. We will also talk about various terminologies that include price, conditions, warranty and approval for sale. We will also discuss various acts and rights on sales, goods, stoppage, transits. To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html

1. CONTRACTS OF SALE OF GOODS

2. i-There must be two parties
ii-The object must be transfer of ‘ property’
iii-The subject matter of the contract of sale
must be ‘ Goods’
iv-Consideration for sale of goods must be ‘
money’
v-A contract may be in writing or word of
mouth or partly both
vi-Includes actual sale and agreement to

3. i-Transfer of property
ii-Risk of Loss
iii-Nature of contract
iv-Consequences of breach
v-Right to resell
vi-Insolvency of buyer
vii-Insolvency of seller
viii-Nature of rights

4. 1-Ownership of goods is transferred from
seller to buyer
2-The buyer may use the goods as he likes
3-There is no return of goods ,unless there
is a breach
4-The consideration is the price
5-Any charges to be paid either way does
not arise

5. 1-There is transfer of possession ,not
ownership
2-A bailee can use the goods only according
to the directions of the bailor
3-The goods are retuned after the
accomplishment of purpose
4-The consideration is an undertaking
5-The bailor has to repay the charges which
the bailee has incurred.

6. 1-Transfer of property in the goods
2-Position of buyer
3-Insolvency of buyer
4-Passing of the title of the buyer
5-Sales Tax
6-Nature of the contract
7-Termination of contract
8-Instalments paid
9- Governing act

7. 1- Possession or Acquisition
2-Certainity
3-Control over factors of Production

8. Section 2(10) of the Act defines ‘ price’ as
the ‘ money consideration for a sale of
goods’
Mode of Fixing price
Earnest Money or deposit
Stipulation as time

9. 1- Bill of Lading
2-Dock Warrant
3-Warehouse keeper’s certificate
4-Railway receipt
5-Delivery Order

10. 1-Term regarding goods forming part of the
contract of sale
2-Essential to the main purpose of sale
3-The breach of condition gives the
aggrieved party the right to treat the contract
as repudiated, and also entitles him to claim
damages
4-If contract of sale is broken ,the aggrieved
party can treat the contract as repudiated
and reject the goods

11. 1-It is stipulation of term regarding goods
forming part of the contract of sale
2-A term which is not essential to the main
purpose of the contract
3-Gives the aggrieved party only the right to
sue for damages

12. 1-Relation to main purpose
2-Rights of aggrieved party
3-Treating condition as warranty
4-Legal effects of breach
5-Discharge on breach

13. 1-Relation to main purpose
2-Rights of Aggrieved party
3-Treating condition as ‘ Warranty’
4-Legal effects of breach
5-Discharge on breach

14. i- Conditions as to Title
ii-Condition in case of sale by description
iii-Condition in case of sale by sample
iv-Condition in case of sale by description
and sample
v-Condition as to quality or fitness
vi-Condition as to wholesomeness
vii-Condition implied by custom

15. i-Warranties as to quit possession
ii-Warranty of freedom from encumbrances
iii-Warranty as to quality or fitness for a
particular purpose
iv-Disclosures of dangerous nature of goods

16. 1- Conditions as the title
2-Sale by Description
3- Sale by Sample
4- Sale by sample as well as by description
5-Conditions as to fitness or quality
6-Condition as to merchantability
7-Condition as to wholesome
8-Condition implied by custom or usage of
trade

17. 1-Quiet possession
2-Freedom from encumbrance
3-Disclosure of dangerous nature of goods

18. Let the Buyer aware –A buyer purchases
the goods at his own risk provided the seller
is acting within the Law
Subject to the provisions of this Act and any
other law for the time being in force ,there is
no implied warranty or conditions as the
quality or fitness for any particular purpose
of goods supplied under a contract of sale

19. 1-Conditions as to quality of fitness for
buyer’s purpose
2-Conditions as to merchantability
3-Conditions as to wholesomeness
4-Conditions implied by customs
5-Sale under a patent or trade name
6-Consent obtained by fraud

20. The performance of the respective duties of
the seller and the buyer as per the terms of
the contract
i-Seller’s duty to deliver the goods
ii-Buyer’s duty to accept the goods and pay
the price

21. ‘ Delivery’ means voluntary transfer of
possession from one person to another
May be
- Actual
-Symbolic
-Constructive

22. 1- Mode of Delivery
2- Delivery and payment are concurrent
conditions
3-Effect of part delivery
4-Buyer to apply for delivery
5-Place of delivery
6-Time of delivery
7-Mannaer of delivery
8-Expenses of delivery

23. 9- Delivery of wrong quantity
10-Instalment deliveries
11-Delivery to carrier or wharfinger
12-Goods delivered at a distant place
13-Examining the goods on delivery
14-When acceptance is complete on
delivery
15-Liability of buyer for neglecting or
refusing delivery of goods

24. 1- Risk follows ownership
2-Owner to take action against third parties
3- Insolvency of the seller or the buyer
4-Seller’s right to sue for price

25. 1- Goods must be ascertained
2-Intention of the parties
Passing of property is dependent on the
terms of contract. Parties to such contracts
have evolved definite models for carriage of
goods

26. 1- Passing of property at the time of contract
2-Passing of property delayed beyond the
date of contract
i-Goods not in a deliverable state
ii-When the price of goods is to be
ascertained

27. i-When he signifies his approval to the seller
ii-When he does any other act adopting the
transaction
iii-If he does not signify his approval to the
seller but retain the goods without giving
notice of rejection , beyond the time fixed for
the return of goods

28. 1- Estoppel
2-Sale by a Mercantile Agent
3-Sale by one of several joint owners
4-Sale by a person in possession of goods
under a voidable contract
5-Sale by seller in possession after sale
6-Sale by unpaid seller

29. 1- Sale by finder of lost goods
2-Sale by Pawnee pledgee
3- Sale by official assignee
4-Sale by any liquidator of a company
5-Execution sales
6- Sale by Executors and Administrators
7-Purchase in Market Overt
8-Under the negotiable Instruments act

30. 1-Have delivery of goods
2-Right to reject the goods
3- The buyer of goods is not bound to
accept the delivery of goods in installments
4-Right to notice of Insurance
5-Right to examine the goods delivered
6-Right to sue for breach of contract

31. 1-To take delivery of, and pay for goods
2-To apply for delivery
3-To demand delivery at a reasonable hour
4-To take risk of deterioration
5-Liability of buyer for neglecting or refusing
delivery of goods
6-Duty to accept installment delivery and
pay for it

32. 7-Duty to intimate the seller where he
rejects the goods
8-Duty to pay damages for non-acceptance
9-Deliver the goods to carrier or wharfinger
10-Examine the goods delivered
11-Acceptance of the goods delivered
12-Liability of buyer for refusing delivery

33. 1- Suit for price
2-Damages for non-acceptance
3-Damages for breach of contract
4-Interest
5-Special damages

34. 1- Damages for non-delivery
2-Specific performance
3-Remedy for breach of Warranty
4-Damages for breach of contract
5-Interest
6- Special damages

35. 1- When the whole of the price has not been
paid or tendered
2-When a bill of exchange or other
negotiable instrument has been received as
conditional payment and conditions has not
been fulfilled by reason of the dishonor of
the instrument or otherwise

36. 1-When the property in the goods has
passed
i-Right of Lien
ii-Right of stoppage in transit
iii-Right of resale
2-When the property in the goods has
not passed
i-Right of withholding delivery
ii-Right of Lien
iii-Right of stoppage in transit

37. i- Right to sue for price-When the property
in the goods has passed to the buyer and
the buyer refuses to pay
ii-Right to sue for damages-Where the
buyer wrongfully neglects or refuses to
accept and pay for goods
iii-Right to sue for interest-the court may
award interest as such rate as it thinks fit

38. i- Unpaid seller’s Lien-
ii-Stoppage in transit
iii-Right of resale
iv-Right of withholding delivery

39. i-No stipulation as to credit- The unpaid
seller has a lien where the goods have been
sold without any stipulation
ii-Sale on credit-the unpaid seller has a lien
where the goods have been sold on credit
but the term of credit has expired
iii-Insolvency of buyer-The unpaid seller
has a lien where the buyer becomes
insolvent

40. i-Delivery to carrier-The unpaid seller
loses his lien when he delivers the goods to
the carrier for the purpose of transmission to
the buyer
ii-Lawful possession by buyer-The unpaid
seller loses his lien where the buyer or his
agent lawfully obtains possession of goods
iii-Waiver-The unpaid seller loses his lien
,when he waves his lien expressly

41. i-Goods care deemed to be in the course of
transit
ii-If the buyer or his agent in that behalf
obtains delivery of the goods before their
arrival at the destination
iii-The Carrier or bailee acknowledges to the
buyer that he holds goods
iv-If the goods are rejected by buyer and the
carrier is in possession of goods

42. v-When the goods are delivered to a ship
chartered by the buyer ,whether they are in
possession of the master as a carrier
vi-Where the carrier wrongfully, refuse to
deliver the goods to the buyeragent in that
behalf, the transit is deemed to be at an end
vii-Where the part delivery of the goods has
been made to the buyer agent in that
behalf ,the remainder of the goods may be
stopped in transit

43. 1- Nature of right
2-Possession of goods
3-Commencement and end
4-Insolvency of the buyer
5-Mode of exercising

44. i- When the goods are of perishable nature
, the unpaid seller may resell the goods
without any notice to the buyer.
When the unpaid seller has exercised right
of Lien , he has to give notice to the buyer
for his intention to resell

45. 1- Suit for price
2-Suit for damages for non-acceptance
3-Repudition of contract before due date
4-Suit for interest

46. A sale by auction is a public sale where
different intending buyers try to outbid each
other. The goods are ultimately sold to the
highest bidder. The auctioneer who
conducts the auction is an agent of the
seller
The sale of Goods Act lays down various
rules in the cases of a sale by auction

47. This a contract for sale of goods to be
delivered free on board a ship. The letter
F.O.B. stands for ‘ free on board’ and word
F.O.R. stands for Free on Rail
There are various terms such as F.O.B
,F.O.R. ,C.I.F. , and C & F etc

48. i-To load the sold goods safely on the ship
named by the buyer
ii-The meet the expenses of Loading the
goods
iii-To enter into contract with the shipping
company for the transportation of goods and
obtain a bill of Lading
iv-To deliver the bill of Lading to the buyer

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