LAW OF SALE OF GOODS ACT, 1930 Lecture Notes

INTRODUCTION

            Till 1930, transactions relating to sale and purchase of goods were regulated by the Indian Contract Act, 1872.  In 1930, Sections 76 to 123 of the Indian Contract Act, 1872 were repealed and a separate Act called ‘The Indian Sale of Goods Act, 1930 was passed.  It came into force on 1st July, 1930.  With effect from 22nd September, 1963, the word ‘Indian’ was also removed.  Now, the present Act is called ‘The Sale of Good Act, 1930’.  This Act extends to the whole of India except the State of Jammu and Kashmir.

            According to Section 3, the provisions of the Indian Contract Act, 1872, still continue to apply to contracts for the sale of goods except where ‘The Sale of Goods Act’, 1930 provides for the contrary.

Meaning of contract of Sale

            According to Section 4(1) of the Sale of Goods Act, 1930, “Contract of sale of  goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price”.  ‘Contract of Sale’ is a generic term which includes both a sale as well as an agreement to sell.

Essential Elements of Contract of Sale

The aforesaid definition clearly indicates the essential elements shown below .








There must be a seller as well as a buyer.  ‘Buyer’ means a person who buys or agrees to buy goods [Section 2(1)].  ‘Seller’ means a person who sells or agrees to sell goods [Section 2(13)].
‘Good’ means every kind of movable property other than actionable claims and money.
Property means the General property in goods, and not [Section 2(11)].  General property in goods means ownership of the goods.
There must be a price.  Price here means the money consideration for a sale of goods [Section 2(10)].  When the consideration is only goods, it amount to a ‘barter’ and not sale.
In addition to the aforesaid specific essential elements, all the essential elements of a valid contract as specified under Section 10 of Indian Contract Act, 1872 must also be present.

DISTINCTION BETWEEN SALE AND AGREEMENT TO SELL

What   does ‘Contract of Sale’ Include

The term ‘Contract of Sale’ includes both a ‘sale’ and ‘agreement to sell’ as shown below.




          


 
When does Agreement to Sell become Sale [Section 4(4)].
An Agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the ownership in the goods, is to be transferred.

Distinction between Sale and Agreement to Sell 

A ‘Sale’ and an ‘Agreement to Sell’ can be distinguished as under: 

Basis of distinction

Sale
Agreement to sell
1. Transfer of ownership
Transfer of ownership of goods takes place immediately
Transfer of ownership of goods is to take place at a future time or subject to fulfillment of some condition.  
2. Executed contract or Executory contract
It is an executed contract because nothing remains to be done.
It is an executory contract because something remains to be done.
3. Conveyance of property
Buyer gets a right to enjoy the goods against the whole world including seller.  There fore, a sale creates jus in rem (Right against property). 
Buyer does not get such right to enjoy the goods.  It only creates jus in personam (Right against the person).
4. Transfer of risk
Transfer of risk of loss of goods takes place immediately because ownership is transferred.  As a result, in case of destruction of goods, the loss shall be borne by the buyer even though the goods are in the possession of the seller.  
Transfer of risk of loss of goods does not take place because ownership is not transferred.  As a result, in case of destruction of goods, the loss shall be borne by the seller even though the goods are in the possession of the buyer.
5. Rights of seller against the buyer’s breach
Seller can sue the buyer for the price even though the goods are in his possession.  
Seller can sue the buyer for damages even though the goods are in the possession of the buyer.


6. Rights of buyer against the seller’s breach 
Buyer can sue the seller for damaged and can sue the third party who bought those goods, for goods. 
Buyer can sue the seller for damages only.
7. Effect of insolvency of seller having possession of goods
Buyer can claim the goods from the official receiver or assignee because the ownership of goods has transferred to the buyer. 
Buyer cannot claim the goods even when he has paid the price because the ownership has not transferred to the buyer.  The buyer who has paid the price can only claim rateable dividend.  
8. Effect of insolvency of the buyer before paying the price
Seller must deliver the goods to the official receiver or assignee because the ownership of goods has transferred to the buyer.  He can only claim rateable dividend for the unpaid price.
Seller can refuse to deliver the goods unless he is paid full price of the goods because the ownership has not transferred to the buyer.

Meaning of Goods [Section 2(7)]

            Goods means every kind of movable property other than actionable claims and money, and includes the following:
(a)    Stock and shares
(b)   Growing crops, grass and thing attached to or forming part of the land which are agreed to be served before sale or under the Contract of Sale. 
   

Type of Goods

 

Types of Goods


Existing goods mean the goods which are either owned or possessed by the seller at the time of contract of sale.

Future goods [Section 2(6)] Future goods mean goods to be manufactured or produced or acquired by the seller after the making of the contract of sale.

These are the goods the acquisition of which by the seller depends upon a contingency which may or may not happen.

CONDITIONS AND WARRANTIES

It is usual for both seller and buyer to make representations to each other at the time of entering into a contract of sale.  Some of these representations are mere opinions which do not form a part of contract of sale.   Whereas some of them may become a part of contract of sale.   Representations which become a part of contract of sale are termed as stipulations which may rank as condition and warranty e.g. a mere commendation of his goods by the seller doesn’t become a stipulation and gives no right of action of the buyer against the seller as such representations are mere opinion on the part of the seller.  But where the seller assumes to assert a fact of which the buyer is ignorant, it will amount to a stipulation forming an essential part of the contract of sale.

Meaning of Stipulation [Section 12(1)]

A stipulation in a contract of sale of goods may be a condition or warranty [Section 12(1)].

 

Meaning of Condition [Section 12(2)]

A condition is a stipulation
(a)    Which is essential to the main purpose of the contract, and
(b)   The breach of which gives the aggrieved party a right to terminate the contract.

Meaning of Warranty [Section 12(3)]

            A warranty is a stipulation
(a)    Which is collateral to the main purpose of the contract, and
(b)   The breach of which gives the aggrieved party a right to claim damages but not  right to reject goods and to terminate the contract.   

When condition to be treated as warranty [Section 13]

            In the following three case, a breach of a condition is treated as a breach of a warranty:
(a)    Where the buyer waives a condition: once the buyer waives a condition, he cannot insist one its fulfillment e.g. accepting defective goods or beyond the stipulated time amounts to waiving a condition.
(b)   Where the buyer elects to treat breach of the condition as a breach of warranty; e.g. where he claims damages instead of repudiating the contract.
(c)    Where the contract is not severable and the buyer has accepted the goods or part thereof, the breach of any condition by the seller can only be treated as a breach of warranty.  It can not be treated as a ground for rejecting the goods unless otherwise specified in the contract.  Thus, where the buyer after purchasing the goods finds that some condition is not fulfilled, he cannot reject the goods.  He has to retain the goods entitling him to claim damages.      


Express and implied conditions and warranties                                        

In a contract of sale of goods, conditions and warranties may be express or implied.
(a) Express Conditions and Warranties These are expressly provided in the contract.  For example, a buyer desires to buy a SONY TV Model No. 2062.  Here, model no. is an express condition.  In an advertisement for Khaitan fans, guarantee for 5 years is an express warranty.
(b) Implied Conditions and Warranties These are implied by law in every contract of sale of goods unless a contrary intention appears from the terms of the contract.  The various implied conditions and warranties have been shown below.






                                                                                  
implied conditions [Sections 14(A), 15(1), 16(1), 16(2), 16(3), 17]
(a)   Condition as to Title [Section 14(a)] There is an implied condition on the part of the seller that (i) in the case of a sale, he has a right to sell the goods, and (ii) in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.
(b)   Sale by Description [Section 15] Where there is a contract of sale of goods by description, there is an implied condition that the goods shall correspond with description.  The main idea is that the goods supplied must be same as were described by the seller.  Sale of goods by description include many situations as under:
(c)    Sale by Sample [Section 17] A contract of sale is contract for sale by sample when there is a term in the contract, express or implied, to that effect.  Such sale by sample is subject to the following three conditions.
(i) The goods must correspond with the sample in quality.
(ii) The buyer must have a reasonable opportunity of comparing the bulk with the sample.
(iii) The goods must be free from any defect which renders them unmerchantable and which would not be apparent on reasonable examination of the sample.  Such defects are called latent defects and are discovered when the goods are put to use.  It may be noted that the seller cannot be held liable for apparent or visible defects which could be easily discovered by an ordinary prudent person.

(d)   Sale by sample as well as by Description [Section 15] If the sale is by sample as well as by description, the goods must correspond with the sample as well as the description.
(e)    Condition as to Quality or Fitness [Section 16(1)] There is no implied condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale.  In other words, the buyer must satisfy himself about the quality as well as the suitability of the goods.  This is expressed by the maxim caveat emptor (let the buyer beware).
(f)    Condition as a Merchantable Quality [Section 16(2)] Where the goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be of merchantable quality.   The expression ‘merchantable quality’ means that the quality and condition of the goods must be such that a man of ordinary prudence would accept them as the goods of that description.  Goods must be free any latent or hidden defects.
(g)   Conditions as to Wholesomeness In case of eatables or provisions or foodstuffs, there is an implied condition as to wholesomeness.  Condition as to wholesomeness means that the goods shall be fit for human consumption.

Implied Warranties [Section 14(b), 14(c), and 16(3)]
(a)   Warranty as to Quiet Possession [Section 14(b)] There is an implied warranty that the buyer shall have and enjoy quiet possession of the goods.  The reach of this warranty gives buyer a right to claim damages from the seller.
(b)   Warranty of Freedom from Encumbrances [Section 14(c)] There is an implied warranty that the goods are free from any charge or encumbrance in favour of any third person if the buyer is not aware of such charge or encumbrance.  The breach of this warranty gives buyer a right to claim damages from the seller.
(c)    Warranty as to Quality or Fitness for Particular Purpose which may be Annexed by the Usage of Trade [Section 16(3)]
(d)   Warranty to Disclose Dangerous Nature of Goods In case of goods of dangerous nature the seller must disclose or warn the buyer of the probably danger.  If the seller fails to do so, the buyer may make him liable for breach of implied warranty.  

Meaning of the Doctrine of Caveat Emptor [Section 16]
            The expression ‘Caveat Emptor’ means ‘let the buyer beware’.  The doctrine of caveat emptor has been given in the first para of Section 16 which reads as under:

            “Subject to the provisions of this Act and any other la for the time being in force, there is no implied warranty or condition as to the quality or fitness for ny particular purpose of good supplied under a contract of sale”.

            In other words, it is not part of the seller’s duty to point out defects of the goods which he offers for sale, rather it is the duty of the buyer to satisfy himself about the quality as well as the suitability of the goods.

Exceptions to the Doctrine of Caveat Emptor

The doctrine of caveat emptor is subject to the following exceptions shown. 
(a)      In Case of Misrepresentation by the Seller Where the seller makes a misrepresentation and the buyer relies on that representation.

(b)      In Case of Concealment of Latent Defect Where the seller knowingly conceals a defect which would not be discovered on a reasonable examination.

(c)       In Case of Sale by Description [Section 15] Where the goods are sold by description and the goods supplied by the seller do not correspond to the description.






Exceptions to the Doctrine of Caveat Emptor
(d)      In Case of Sale by Sample [Section 17] Where the goods are sold by sample and the goods supplied by the seller do not correspond with the sample.
(e)       In Case of Sale by Sample as well as Description [Section 15] Where the goods are sold by sample as well as description and the goods supplied do not correspond with sample as well as description.
(f)       Fitness for a Particular Purpose [Section 16(1)] Where the seller or a manufacturer is a dealer of the type of goods sole by him and the buyer has  disclosed the purpose for which goods are required and relied upon the seller’s skill or judgement.
(g)      Merchantable Quality [Section 16(2)] Where the goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or producer or not), there is an implied condition that goods shall be of merchantable quality.
SALE BY NON-OWNERS
Meaning of General Rule
The general rule is expressed by the latin maxim “Namo dat quod non habet”, which means that “no one can give what he does not himself possess”.  If the seller’s title to the goods is defective, the buyer’s title will also be defective because the buyer acquires his title to the goods from the seller.  Hence, the seller cannot give a better title to the buyer than he himself has.

Exceptions to the General Rule

The circumstances  under which a seller can give a better title than what he himself has, have been shown.
Lest us discuss these exceptions one by one. 



  Exceptions to the General Rule 


The various exceptions of the general rule and the conditions for their application are summarised below:

Exception to the general rule

Conditions to be fulfilled before a buyer gets a good title to the goods
(a) Sale by a mercantile agent [Section 27]






(b) Sale by one of the joint owners [Section 280]




(c) Sale by a person in possession under voidable contract








(d) Sale by seller in possession after sale [Section 30(1)]





(e) Sale by a buyer in possession before the transfer of ownership [Section  30(2)]






(f) An unpaid seller [Section 54(3)]


(g) Sale by a Finder of Goods [Section 169 of Indian Contract Act 1872]





(h) Sale by a pawnee or pledgee




(i) Sale by Official Receiver or Assignee or Liquidator

(j) Sale by owner by estoppel
(i) The agent must be in possession of goods of a document title (e.g., Railway receipt, Bill of Lading) to the goods with the consent of the owner.
(ii) The agent must have sold the goods in the ordinary course of business as a mercantile agent.
(iii) The buyer must have acted in good faith.
(iv) The buyer must have no knowledge that the seller had no authority to sell.

(i) The joint owner must be in the sole possession
(ii) The buyer must have bought the goods in good faith.
(iii) The buyer must have no knowledge that the seller had no authority to sell.

(i) The seller must be in possession of goods under a contract voidable u/s 19 or 19A of Indian Contract.  Act, 1872 on ground of coercion, undue influence, misrepresentation of fraud.
(ii) The goods must have been sold before the contract is rescinded.
(iii) The buyer must have bought the goods in goods faith.
(iv) The buyer must have no knowledge that the seller’s title is defective. 

(i) The seller must be in possession of goods or of a document of title to the goods, in the capacity of a seller and not in any other capacity such as bailee.
(ii) The buyer must have bought the goods in good faith.
(iii) The buyer must have no knowledge about the previous sale.

(i) The buyer must be in possession of the goods or a document of title to the goods, with the consent of the original seller and must have bought or agreed to buy the goods.
(ii) The new buyer must have bought the goods in good faith.
(iii) The new buyer must have no knowledge about any lien or other right of the original seller in respect of good. 

An unpaid seller must have exercised his right of lien or stoppage in transit.

(i) The owner cannot be found with reasonable diligence; or
(ii) The owner, if found refuse to pay the lawful charges of finder; or
(iii) If the goods are in danger of perishing or of losing the greater part of its value; or
(iv) If the lawful charges of the finder in respect of the thing found amounts to two third of its value.

(i) The pawnor or pledger must have made a default in the payment of the debt or the performance of the promise at the stipulated time.
(ii) The pawnee or pledgee must have given  a reasonable notice to the pawnor or pledger.

The involvement person must be the owner of goods.

The owner of the goods b his statement or conduct must have lead the buyer to believe that the seller has the autority to sell.



PROPERTY, POSSESSION AND RISK
There are three stages in the performance of a contract of sale of goods by a seller, viz,
(1)   The transfer of property in the goods:
(2)   The transfer of possession of the goods (i.e., delivery) and
(3)   The passing of the risk.   

1. Risk follows ownership.  Unless otherwise agreed, risk follows ownership whether delivery has been made or not and whether price has been paid or not.  Thus the risk of loss as a rule lies on the owner.

2. Action against third parties.  when the goods are in any way damaged or destroyed by the action of third parties, it is only the owner of the goods who can take action against them.

3. Insolvency of the seller or the buyer.  In the event of insolvency of either the seller or the buyer, the question whether the official Receiver or Assignee can take over the goods or not depends on whether the property in the goods has passed from the seller to the buyer.

4. Suit for price.  The seller can sue for the price, unless otherwise agreed, only if the goods have become the property of the buyer.


PASSING OF PROPERTY
The primary rules for ascertaining when the property in goods passes to the buyer are as follows:
1. Goods must be ascertained.  Where there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained

2. Intention of the parties.  Where there is a contract for the sale of specific or ascertained goods, the property in them passes to the buyer at the time when the parties intend it to pass.       

1. Specific goods (Secs. 20 to 22)
            The rules relating to transfer of property in specific goods are as follows:
Passing of property at the time of contract.  Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made.  The fact that the time of payment of the price or the time of delivery of goods, or both, is postponed does not prevent the property in goods passing at once.

2. Unascertained goods (Sec. 23)
            Where there is a contract for the sale of unascertained goods, the property in the goods does not pass to the buyer until the good are ascertained (Sec. 23 (1) further provides that where is a contract for the sale of unascertained or future goods by description and goods of that description and in a deliverable state are unconditionally appropriated to the contract, the property in the goods thereupon passes to the buyer.

3. Goods sent on approval or on sale or return 
            When goods are delivered to the buyer on approval or on sale or return or other similar terms, the property therein passes to the buyer:
(1)   when he signifies his approval or acceptance to the seller;
(2)   when he does any other act adopting the transaction;


Rules as to delivery of goods
            1. Mode of delivery (Sec. 33). Delivery should have the effect of putting the goods in the possession of the buyer or his duly authorised agent.  Delivery of goods may be (1) actual, (2) constructive, or (3) symbolic.

            2. Delivery and payment - concurrent conditions.  Delivery of the goods and payment of the price must be according to the terms of the contract.  Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions, that is to say, the seller shall be ready and willing to give possession of the goods to the buyer in exchange for the price and the buyer shall be ready and willing to pay the price in exchange for possession of the goods (Sec. 32).
           
3. Effect of part delivery.  A delivery of part of the goods in progress of the delivery of the whole, has the same effect, for the purpose of passing the property in such goods, as a delivery of the whole.  But a delivery of the goods, with an intention of severing it from the whole, does not operate as delivery of the remainder (Sec. 34).
           
4. Buyer to apply for delivery.  Apart from any express contract, the seller of goods is not bound to deliver them until the buyer applies for delivery (Sec. 35).  Where the goods are subsequently acquired by the seller, he should intimate this  the buyer and the buyer should then apply for delivery.  Unless otherwise agreed, the buyer has not cause of action against the seller if he does not apply for delivery.

5. Place of delivery.  Where the place at which delivery of the goods is to take place is specified in the contract, the goods must be delivered at that place during business hours on a working day.  Where there is no specific agreement as to place, the goods sold are to be delivered at the place at which they are at the time of sale.   As regards the goods agreed to be sold, they are to be delivered at the place at which they are at the time of agreement to sell, or if not then in existence, at the place at which they are manufactured or produced (Sec. 36(1).      

6. Time of delivery.  Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time (Sec. 36 (2).  But where the contract uses words like “directly”, “without loss of time”, or “forthwith”, quick and immediate delivery is contemplated.  Demand or tender of delivery should be made at a reasonable hour.  What is a reasonable hour is a question of fact (Sec. 36 (4).

7. Goods in possession of a third party.  When at the time of the sale the goods re with a third party, there is no delivery by the seller to the buyer until such third party acknowledges to the buyer that he holds them on his behalf.  But where the goods have been sold by the issue or transfer of any document of title to goods.  E.g.. a receipt or a bill of lading, such third party’s consent is not required (Sec. 36 (3).
  
8. Cost of delivery.  Unless otherwise agreed. All expenses of and incidental to making of delivery are borne by the seller, but all expenses of and incidental to obtaining of delivery are borne by the buyer (Sec. 36 (5).

9. Delivery of wrong quantity (Sec. 37).  The delivery of the quantity of goods contracted for should be strictly according to the terms of the contract.  A defective delivery entitles the buyer to reject the goods.  The three different contingencies which may arise in case of a defective delivery. I.e., delivery of a wrong quantity.
 
RIGHTS OF AN UNPAID SELLER
‘Seller’ here  means not only the actual seller, but also any person who is in the position of a seller, e.g., an agent of the seller to whom a bill of lading has been endorsed, or a consignee or agent who has himself paid for the goods or is directly responsible for the price [Sec. 45(2)].


RIGHTS OF AN UNPAID SELLER


















I. Rights of an unpaid seller against the goods
            Where the property in the goods has passed to the buyer, an unpaid seller has the following rights against the goods [Sec. 46(1)]: 
1. Right of lien 9Secs. 46(1) (a) and 47 to 49]
      A lien is a right to retain possession of goods until payment of the price [Sec. 46(1) (a)]. It is available to the unpaid seller of the goods who is in possession of them where.
(a) The goods have been sold without any stipulation as to credit:
(b) The goods have been sold on credit, but the term of credit has expired;
(c) The buyer becomes insolvent [Sec. 47(1)].
Rules regarding lien. (1) The seller may exercise his right of lien not with standing that he is in possession of the goods as agent or bailee for the buyer [Sec. 47(2)].  If he loses the possession of he goods, he losses the right of lien also.


2. Right of stoppage in trnsit [Secs. 46(1) (b) and 50 to 52]
The right of stoppage in transit is a right of stopping the goods in transit after the unpaid seller has parted with the possession of the goods.  He has the further right of resuming possession of the goods as long as they are in the course of transit, and retaining possession until payment or tender of the price.  It is available to the unpaid seller-.             
                                                              i.      When the buyer becomes insolvent; and
                                                            ii.      When the goods are in transit (Sec. 50).

Distinction between right of lien and right of stoppage in transit

i.  The unpaid seller’s right to stop the goods in transit  arises only when the buyer is insolvent but the right of lien can be exercised even when the buyer is able to pay but does not pay.
ii. The right of lien can be exercised on goods which are in actual or constructive possession of the seller.
iii. The right of lien comes to an end when the possession of the goods is surrendered by the seller, but the right of stoppage in transit commences when the goods have left the possession of the seller and continues until the buyer or his agent has acquired their possession.
iv. The right of lien is to retain possession, while the right of stoppage in transit is to regain or resume possession.   

3.Right of resale [Secs. 46(1) (c) and 54]
            The unpaid seller can re-sell the goods –
(1)   Where the goods are of a perishable nature: or
(2)   Where he gives notice to the buyer of his intention to re-sell the goods and the buyer does not within a reasonable time pay or tender the price.           

AUCTION SALES

A sale by auction is a public sale where different intending buyer try to outbid each other.  The goods are ultimately sold to the highest bidder.  The auctionneer who sells the goods by auction is an agent of the seller, i.e., the owner.  His relationship with the owner of the goods is governed by the general principles of the law relating to agency.   

Procedure in auction sales.  The usual procedure in case of auction sales is as follows: The proposed auction is duly advertised and a printed catalogue of the goods together with the terms of sale is circulated.  On the appointed day and time, the intending buyers assemble and the auctioneer puts the different lots to auction and invites bids from the intending buyers.

Rules of auction sales.  The law on auction sales is contained in Sec. 64 of the Sale of Goods Act.  According to it, in the case of a sale by auction the following rules apply:
  1. Goods put up for sale in lots.  Where goods are put up for sale in lots, each lot is prima facie deemed to be subject of a separate contract of sale [Sec. 64(1)].

  1. Completion of sale.  The sale is complete when the auctioneer announces its completion by the fall of the hammer or in some other customary manner.

  1. Right of seller to bid.  A right to bid may be reserved expressly by or on behalf of the seller.  Where such right is expressly reserved (but not otherwise), the seller or any one person on his behalf may bid at the auction ‘Section 64 (3)].

  1. Sale not notified subject to a right to bid.  Where a sale is not notified to be subject to a right to bid no behalf of the seller, it is not lawful.

  1.  Reserve price.  The sale may be notified to be subject to a reserve or upset price [Sec. 64(5)].  It is a price below which the auctioneer will not sell.

  1. Use of pretended bidding.  If the seller make use of pretended bidding to raise the price, the sale is voidable at the option of the buyer [Sec. 64(6)].

  1. Knock out or agreement not to bid against each other.  Where a group of persons form a combination to prevent competition between themselves at an auction and arrange that only one of them will bid.  

 Previous University Questions
1.      Define a ‘contract of sale’.
2.      Does the term ‘contract of sale’ include an agreement to sell?
3.      When does an agreement to sell become sale?
4.      Can a contract of sale be implied from the conduct of parties?
5.      Can a contract of sale be partly in writing and partly by words of mouth?
6.      Can an offer to sell by words of month be accepted in writing?
7.      Can an offer in writing be accepted by words of mouth?
8.      What is the true test of hire-purchase agreement?
9.      What is a contract for work and labour?
10.  Is a contract for work and labour covered under the Sale of Goods Act, 1930?
11.  Define the term ‘goods’.
12.  Do old rare coins constitute goods?
13.  Do actionable claims constitute goods? 

1.      Enumerate the implied conditions and implied warranties.
2.      What is meant by ‘sale by decription’?
3.      What is meant by ‘sale by sample’?
4.      What is meant by ‘sale by sample as well as by description?
5.      What is meant by ‘condition as to quality or fitness’?
6.      State the conditions to be satisfied to avail of the condition as to fitness.
7.      State tow cases where the condition as to fitness may not be applicable.
8.      What is meant by ‘condition as to merchantable quality’?
9.      When can a breach of condition be treated as a breach of warranty?
10.  What is doctrine of ‘caveat emptor’?
11.  Enumerate the exceptions to the doctrine of caveat emptor.
12.  State the reason of knowing the exact moment when property in goods passes to the buyer.
13.  State the rules relating to transfer of property of specific goods from seller to buyer.
14.  State the rules relating to transfer of property of unascertained goods from seller to buyer. 


1.      (a) Define a contract of sale.
(b) Explain the essentials of a valid contract of sale.
(c) How is a contract of sale different from an agreement to sell?
2.      (a) How is a contract of sale made? State briefly with illustrations the necessary formation formalities of such a contract.
3.      (a) Explain the term ‘goods as defined in, the Sale of Goods Act 1930.
(b) What are the various types of goods?
4.      What is the effect of destruction of specific goods?
5.      (a) Distinguish between condition and warranty.
(b) Briefly discuss the implied conditions and warranties in a contract of sale.
(c) Under that circumstances does a condition descend to the level of a warranty?
6.      (a) What is the doctrine ‘caveat emptor’?
(b) What are the exceptions to this rule?

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