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EXPLAIN THE INGREDIENTS OF

CONTRACT OF SALE????

WHAT ARE THE TYPES OF IMPLIED

CONDITIONS AND WARRANTIES???

Made by :

YAMINI BANSAL(47)

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CONTRACT OF SALE

Acc. To Sec.4(1)

A contract of sale of goods is a contract

whereby the seller transfers or agrees to

transfer the property in goods to the buyer fora price.

There may be a contract of sale between one

part owner and another.

A contract of sale may be absolute or

conditional depending upon the desire of

contracting parties .

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ESSENTIALS OF CONTRACT OF SALE

Two parties

Transfer ofOwnership

Goods

Price

All essentials of valid contract

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INGREDIENTS

Sale :- When property is transferred from seller

to buyer at the time of formation of contract,

an absolute sale occurs.

Agreement to sell :-When property in the goods

is to be transferred at somefuture date and not

at the time of contract, the contract of sale is

termed as an agreement to sell.

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POINTS OF DISTINCTION

SALE VS AGREEMENT TO SELL

Nature ofContract

Nature ofrights ofbuyer

Consequences ofbreach by buyer

Risk ofloss

Insolvency of the buyer

Insolvency of the seller

Consequences in case ofresale

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DISTINGUISH BETWEEN

Its an executed

(absolute) contract. Creates jus in rem

i.e.gives the rights to

buyers to claim the

goods as against

anybody who disturbstheir rights to use the

goods.

Its an executory

(implies a condition)contract.

Creates jus in

personam i.e. right of

either party against

each other for anydefault in fulfilling its

part of agreement.

SALE AGREEMENTTOSELL

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CONTD.

Ifbuyer refuses to

accept the goods &pay the price , the

seller may sue

him/her for the price.

In this if there is any

damage to goods itfalls on the buyer

In this case the seller

can sue for damages.

In this case the loss

falls on the selleralthough the goods

are with buyer.

SALE AGREEMENTTOSELL

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CONTD.

If the seller becomes

insolvent while the

goods are with him , the

buyer is entitled to

recover the goods.

If the buyer becomes

insolvent the seller

must deliver the goods.

In this case the buyer

cant claim for thegoods even if he has

paid the price . He can

only claim ratable

dividend for the

money paid. In this case the seller

may refuse to deliver

the goods.

SALE AGREEMENTTOSELL

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CONDITIONS &WARRANTIES

Acc to sec 12(1) Astipulation in a contract of

sale with reference to goods which are subject

matter there of, may be a condition or a

warranty.

These stipulations can be of two types

1) Conditions

2) Warranties

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Under sec 12(2) Acondition is a stipulation

essential to the main purpose of the

contract, the breach of which gives rise to a

right to treat the contract as repudiated.

Under sec 12(3) Awarranty is a stipulation

collateral to the main purpose of the

contract, the breach of which gives rise to a

claim for damages but not to a right to reject

the goods and treat the contract as repudiated.

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TYPES OF IMPLIED CONDITIONS

Condition as to title [sec 14(a)]

Condition as to description [sec 15]

Condition as to sample [ sec 17(2)]

Condition as to sample as well as description[sec 17(2)(a)]

Condition as to quality or fitness [ sec 16(1)]

Condition as to merchantability [ sec 16(2)]

Condition as to wholesomeness

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TYPES OF IMPLIED WARRANTIES

Warranty as to quiet possession [Sec 14(b)]

Warranty against encumbrances [Sec 14(c)]

Warranty to disclose the dangerous nature of

goods.

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THANK YOU!!!!!!!