sales of goods act 1990

7/27/2019 sales of goods act 1990

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Sale of Goods Act,1930

Performance of Contract


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Introduction

What is a Contract?->A contract is an agreement made between two

or more parties which the law will enforce.Section 2(h) defines contact as an agreement

enforceable by law.

What is performance of a contract of sale?->Performance of a contract of sale means as

regards the seller, the delivery of goods to thebuyer, and as regards the buyer, acceptance ofthe delivery of the goods and payment for them,in accordance with the terms of the contract ofsale.


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Contd..

A contract of sale involves reciprocalpromises.

If the contract contains any special terms as

to delivery and acceptance, these must becomplied with. If there are no terms in the

contract to this effect, delivery of the goods

and payment of the price are concurrent

conditions.


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Delivery Of Goods

Delivery means voluntary transfer of

possession of goods from one person to

another. Delivery of goods may be:-

Actual delivery

Symbolic deliveryConstructive delivery or delivery by

attornment.


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Rules as to delivery of

goods Mode of delivery Delivery and payment concurrent conditions

Effect of part delivery

Buyer to apply for delivery

Place of delivery Time of delivery

Goods in possession of a third party

Cost of delivery

Delivery of wrong quantity

Installment deliveries

Delivery to a carrier or wharfinger


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Acceptance of delivery

Receipt of goods by the buyer doesnt

necessarily result in acceptance of goods.

by him under, and in performance of, the

contract of sale

Acceptance is something more than mere

receipt or taking possession of the goods by

the buyer..


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Buyers liability

In case of rejection of goods:

Unless otherwise agreed, where

goods are delivered to the buyer andhe rejects them, he is not bound toreturn them to the seller.

If the seller refuses to take away thegoods, the buyer comes the bailee ofthe goods and may charge for keepingthem.


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For neglecting or refusing the delivery of goods:-

When the seller is ready and willing to deliver the goods andrequests the buyer to take delivery, and the buyer does not ,within a reasonable time after such request, takes delivery ofthe goods, he is liable to the seller for:

(a) Any loss occasioned by his neglect or refusal to take delivery.(b) A reasonable charge for the care and custody of the goods.

Where the neglect or refusal of the buyer to take deliveryamounts to repudiation of the contract, the seller may sue for

price and for damages.


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Rights of the buyer

Right to have delivery as per contractRight to reject the goods

Right to repudiate

Right to notice of insuranceRight to examine

Rights against the seller for breach ofcontract:

(a) Suit for damages (b) Suit for price (c)Suit for specific performance (d) Suit forbreach of warranty (e) Repudiation ofcontract before due date (f) Suit for interest


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Duties of the buyer

Duty to accept the goods and pay for them in exchangefor possession

Duty to apply for delivery

Duty to demand delivery at a reasonable hour

Duty to accept installment delivery and pay for it

Duty to take risk of deterioration in the course of transit

Duty to intimate the seller where he rejects the goods

Duty to take delivery

Duty to pay price

Duty to pay damages for non-acceptance


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RIGHTS OF AN UNPAID

SELLER


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Who is an unpaid seller?

A seller of goods is deemed to be an unpaid

seller when:-

The whole of the price has not been paid or

tenderedA bill of exchange or other negotiable

instrument has been received as a

conditional payment, and the condition on

which it was received has not been fulfilled by

reason of the dishonor of the instrument or

otherwise.


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Rights of an unpaid seller against

the goods

Right of Lien

Right of stoppage in transitRight of re-sale


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Difference between right of lien and right

if stoppage in transit

Right of Lien Right of stoppage in transit

(a) Right of Lien can be exercised

when the buyer is able to pay but

does not pay.

(a) The unpaid sellers right to stop the

goods in transit arises only when

the buyer is insolvent.

(b) It can be exercised on goods whichare in actual or constructive

possession of the seller.

(b) It can be exercised when the goodsare in the possession of a

middleman between the sellers who

has parted with the possession of

the goods and the buyer who has

not yet acquired the possession.(c) It comes to an end when the

possession of the goods is

surrendered by the seller.

(c) It commences when the goods have

left the possession of the seller and

continues until the buyer or his

agent has acquired their possession.

(d) It is to retain possession. (d) It is to regain or resume possession.


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Effect of sub-sale or pledge by

buyer

The unpaid sellers right of lien orstoppage in transit is not affected byany sale or pledge of the goods which

the buyer may have made, unless theseller has assented to it. But this right isdefeated if he has transferred adocument of title to goods to the buyer,and the buyer transfers it by way of saleto a person who takes it in good faithand for consideration.


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Contd..

Right of withholding delivery

Rights of an unpaid seller against the

buyer personally:

(a) Suit for price

(b) Suit for damages for non-acceptance

(c) Repudiation of contract before due

date

(d) Suit for interest


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Remedies for breach of contract

of sale

Sellers suits:-

Suit for price (Sec. 55)

Suit for damages for non-acceptance of the

goods (Sec. 56)Suit for damages for repudiation of contract

by the buyer before due date (Sec. 60)

Suit for interest [Sec 61 (2)(a)]


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Auction Sales

A sale by auction is a public salewhere different intending buyers

try to outbid each other.

His relationship with the owner of

the goods is governed by the

general principles of the lawrelating to agency.


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Rules of auction sales

The law on auction sales is contained inSec. 64 of the Sale of Goods Act. Accordingto it, in the case of a sale by auction thefollowing rules apply:

Goods put up for sale lotsCompletion of saleRight of seller to bidSale not notified subject to a right to a bid

Reserve priceUse of pretended biddingKnock out or agreement not to bid against

each other


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sales of goods act 1990

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