CONTRACT OF SALE OF GOODS SALE OF GOODS ACT 1930

• SALE OF GOOD ACT 1930
  CONTRACT OF SALE OF GOODS
  SHASHI AGGARWAL ECONOMIC AND LAW CLASSES
• INTRODUCTION

1. THE SALE OF GOODS ACT.1930 IS MAINLY BASED ON THE ENGLISH SALE OF GOODS ACT 1893
2. EARLIER THE ACT WAS COVERED UNDER CHAPTER VII OF INDIAN CONTRACT ACT 1872
3. NEW ACT SALE OF GOODS HAD COME INTO FORCE IN FIRST JULY 1930
4. WHICH EXTENDS TO THE WHOLE OF INDIA EXCEPT THE STATE OF JAMMU AND KASHMIR
5. THE SALE OF GOODS ACT.1930 DEALS WITH THE LAW RELATING TO SALE OF GOODS IN INDIA
6. GOODS MEANS EVERY KIND OF MOVABLE PROPERTY OTHER THAN MONEY AND ACTIONABLE CLAIMS

• CONTRACT OF SALE
• SECTION 4 OF THE SALE OF GOODS DEFINES A CONTRACT OF SALE AS UNDER :

·         CONTRACT OF SALE OF GOODS IS A CONTRACT WHERBY THE SELLER TRANSFERS OR AGREES TO TRANSFER THE PROPERTY IN GOODS TO A BUYER FOR A PRICE

·         A CONTRACT OF SALE CONSISTS OF THE FOLLOWING

1. SALE ( ABSOLUTE SALE)
2. AGREEMENT TO SALE ( CONDITIONAL SALE)

• CONTRACT OF SALE
• SALE OR ABSOLUTE SALE
• WHERE THE PROPERTY ( OWNERSHIP) IN THE GOODS IS IMMEDIATELY TRANSFERRED FROM SELLER TO THE BUYER.
• AGREEMENT TO SELL OR CONDITIONAL SALE:
• WHERE THE TRANSFER OF PROPERTY IN THE GOODS SHALL TAKE PLACE IN FUTURE OR ON THE FULFILLMENT OF CERTAIN CONDITIONS.
• THE PROPERTY ( OWNERSHIP ) IN GOODS SHALL NOT E TRANSFERRED FROM THE SELLER TO THE BUYER UNTIL AND UNLESS SOME CONDITION IS FULFILLED FOR THE COMPLETION OF SALE
• TRANSFER OF PROPERTY
• UNION OF INDIA V CENTRAL OF INDIA MACHINERY MFG CO
• PROPERTY  MEANS THE GENERAL PROPERTY OF GOODS AND NOT MERELY  SPECIAL PROPERTY
• GENERAL PROPERTY MEANS THE RIGHT OF OWNERSHIP
• ESSENTIAL OF CONTRACT OF SALE

1. A VALID CONTRACT
2. TWO PARTIES
3. AGREEMENT FOR THE TRANSFER OF OWNERSHIP
4. GOODS
5. PRICE

• ESSENTIAL OF CONTRACT OF SALE
• VALID CONTRACT: SATISFY THE ALL THE ESSENTIALS OF CONTRACT UNER INDIAN CONTRACT ACT 1872. SATISFY THE SECTION 10,VALID OFFER,VALID ACCEPTANCE,FREE CONSENT,VALID AND LAW FUL CONSIDERATIONS,COMPETENT PARTIES AND LAWFUL OBJECT
• TWO PARTIES:-TWO PERSONS AND ONE THE SELLER AND THE OTHER IS BUYER. SELLER AND BUYER MUST BE DIFFERENT
• CASE STUDY : GRAFT  V EVANS
• A CLUB SUPPLIES FOOD AND DRINKS TO FIXED PRICE. THIS WAS HELD TO BE NOT SALE AS A MEMBER OF THE CLUB PAYS TO THE MEMBERS JOINTLY. MEMBERS OF A CLUB ARE UNDIVIDED JOINT OWNERS AND NOT PART  OWNERS.
• TWO PARTIES ( SOME EXCEPTIONS)

1. WHERE A PERSON’S GOODS ARE SOLD IN EXECUTION OF A DECREE,HE MAY HIMSELF BUY THEM
2. A PART OWNER CAN SELL HIS SHARE TO OTHER PART OWNER SO AS TO MAKE THE OTHER PART OWNER THE SOLE OWNER OF THE GOODS
3. WHERE A PAWNEE SELLS THE GOODS PLEDGED WITH HIM ON NON PAYMENT OF BILL MONEY,THE PAWNOR MAY HIMSELF BUY SUCH GOODS
4. A PARTNER MAY ALSO BUY THE GOODS FROM THE FIRM IN WHICH HE IS A PARTNER AND VICE VERSA
5. IN CASE THERE IS SALE BY THE AUCTION,THE SELLER MAY RESERVE THE RIGHT OF  MAKING A BID AT THE AUCTION AND PURCHASE HIS OWN GOODS

• AGREEMENT FOR THE TRANSFER OF OWNERSHIP: ESSENTIAL TO TRANSFER THE GENERAL PROPERTY IN THE GOODS FROM THE SELLER TO BUYER WITH OR WITHOUT PHYSICAL POSSESSION OF THE GOODS. THERE SHOULD BE IMMEDIATE TRANSFER OR AN AGREEMENT TO TRANSFER THE GENERAL PROPERTY IN GOODS SOLD OR  AGREED TO BE SOLD
• GOODS:- THE SUBJECT MATTER OF THE CONTRACT OF SALE MUST BE GOODS
• ACCORDING TO SECTION 2(7) ,” GOODS MEANS EVERY KIND OF IMMOVABLE PROPERTY OTHER THAN ACTIONABLE CLAIMS AND MONEY AND INCLUDES STOCK AND SHARES,GROWING CROPS,GRASS.TREES AND THINGS ATTACHED TO OR FORMING PART OF THE LAND WHICH ARE AGREED TO BE SEVERED IT BEFORE SALE OR UNDER CONTRACT OF SALE.

• DEFINITION OF GOODS
• EXCLUDED FROM THE DEFINITION OF THE GOODS:-

1. MONEY : AS THE PRICE OF THE GOODS HAS TO BE EXPRESSED IN MONEY AND THEREFORE MONEY IT SELF CAN NOT BE SUBJECT OF SALE
2. ACTIONABLE CLAIMS:- WHICH CAN BE ENFORCED BY A LEGAL ACTION OR A SUIT
3. THE SALE OF IMMOVABLE PROPERTY :NOT COVERED UNDER THE SALE OF GOODS ACT. COVERED BY TRANSFER OF PROPERTY ACT.1882

• KURSEER VS TIMBER OPERATORS AND CONTRACTORS LTD
• WHERE THE TREES WERE SOLD AND THEY WERE CUT OUT AND SEPARATED FROM LAND AND TAKEN AWAY BY THE BUYER. THE CONTRACT WAS FOR THE SALE OF TREES AS MOVABLE GOODS

• PRICE: CONSIDERATION MUST BE PAID IN MONEY OR PROMISED. WHEN NO MONEY IS INVOLVED THERE IS NO CONTRACT OF SALE. WHEN GOODS ARE EXCHANGED FOR GOODS THEN IT IS NOT SALE. BUT CONSIDERATION PARTLY MAY BE IN CASH AND PARTLY IN GOODS.
• ALDRIGE V JOHNSON
•  A AGREED TO EXCHANGE WITH B 100 QUARTER OF BARLEY AT 2 POUND PER QUARTER FOR  52 BULLOCKS VALUED AT 6 POUND AND PAY THE DIFFERENCE IN CASH