Subject: The Sale of Goods Act, 1930
By
Prof. Abhijit Thombre
BE (Prod.), DMM, MMM, MFM, LLB, LLM (Cr.)
1
TOPICS Covered:
• Definitions
• Goods and classification of goods
• Delivery of Goods
• Rules governing Delivery of Goods
• Rights and Duties of Buyer
• Rights of Unpaid Seller
2
Definitions
Section 4(1) defines "A contract of sale of goods is a contract whereby the
seller transfers or agree to transfer the property in goods to a buyer for a
price”
■ Analysis of Defn of Sale/Essential features of “Sale”
• Distinct Parties OR two different parties (Seller & Buyer)
• Transfer of Goods (transfer of movable goods only)
• Transfer of Ownership (general property means ownership of goods transferred)
• Price - The consideration for a contract of sale must be money consideration
called the “price”
• Include both Sale & an agreement to sell
3
GOODS AND THEIR CLASSIFICATON
S.2(7) Goods means every kind of movable property other than actionable
claims and money ; and includes stock and shares ,growing crops , grass,
and things attached to or forming part of the land which are agreed to be
severed before sale and under the contract of sale
■ Classification OR Types of Goods:
Existing goods which are owned or possessed by seller at the time of sale. It
may be either Specific, Ascertained or Unascertained
Future Goods means goods to be manufactured or produced or acquired by
seller after making of the contract of sale.
Contingent Goods. Similar to future goods but procurement of these goods
depends on the contingency.
4
DELIVERY OF GOODS
S.2(2) defines “delivery” as “Voluntary transfer of possession of Goods from
one person to another”.
■ Modes of Delivery of Goods:
Actual Delivery: Involves handing over the goods by the seller to the buyer or his duly
authorized representative.
Symbolic Delivery: When the seller gives the docs of title to goods or hands over the
keys of go-down or warehouse in which the goods are stored to buyer or his
authorized agent.
Constructive Delivery: When a 3rd person who is in possession of goods either as an
agent or representative of seller or bailee, at the time of sale, acknowledges to the
buyer that he holds the goods on behalf of buyer consequent upon such sale. Also
called delivery by attornment.
5
RULES GOVERNING DELIVERY OF GOODS
• Delivery & Payment: The delivery of the goods by seller and the payment of the
price of the goods by buyer should be in accordance with the terms of
contracts.
• Buyer to apply for delivery
• Effect of part-delivery: A delivery of part of goods out of the entire quantity of
goods has the same effect of passing the property in the entire quantity of
goods.
• Time of Delivery: If no time mentioned then seller bound to send the goods
within reasonable time.
• Place of Delivery
• If the goods are in possession of 3rd person
• Expenses of the Delivery: must be borne by the seller
6
RIGHTS & DUTIES OF BUYER
■ Rights:
• Right to examine the goods (S.41)
• Right to reject the Goods (S.37)
• Right to repudiate the contract [S.38(1)]
• Right to sue the seller for breach of contract 9S.57)
• Right in case of repudiation of contract before due date (S.60)
• Right to claim interest (S.61)
■ Duties:
• Duty to accept and pay (S.31)
• Duty to apply for delivery (S.35)
• Duty to accept the risk of deterioration of goods in transit (S.40)
• Duty to intimate the seller in the case of rejection (S.43)
• Duty to compensate the seller (S.44)
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RIGHTS OF UNPAID SELLER
Acc. To S.45(1), a person is called an “unpaid seller” i) When the whole of the price
has not been paid or tendered ii) when a BOE or other NI has been received as
conditional payment and the condition on which it was received, has not been fully
paid by reason of dishonor of the instrument or otherwise.
■ Rights of unpaid seller against the Goods:
• Right of Lien
• Right of stoppage in transit
• Right of re-sale
• Right of withholding delivery
■ Rights of unpaid seller against the buyer personally:
• Suit for price
• Suit for damages for non-acceptance
• Suit for repudiation of contract before due date
• Suit for interest by way of damages and special damages
