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A contract of sale of goods is

a contract whereby the seller
transfers or agrees to
transfer the property in
goods for a price
 

A valid contract
Two parties
Transfer the property
Goods
Price
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male and agreement to sell

male and bailment
male and Hire-purchase
male and mortgage
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A contract involving
 transfer of ownership
 in goods
 for a money consideration called the price
Not
 hire purchase
 barter
 Leasing
 Hire purchase is for a specific item for a specific
time, lease purchase is when you lease
something with the option to buy it
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 GOODm MEANm

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 or
under the contract of sale
Õ

 hattels(moveable possession) personal but
not choses in action
 not growing crops but harvested crops are
 future goods = to be manufactured
 specific goods = identified and agreed upon at
time of sale
 existing goods = in existence but not yet
seller's property
 unascertained goods = goods not yet
appropriated (devote to special purpose) to
this contract
 ascertained goods = identified and
appropriated
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Price in a contract of sale means the
money consideration for sale of
goods [mec.2 (10)]. It must be
expressed in money.
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As expressly stated in the contract I.e

by agreement
By the course of dealing between the
parties
If nothing is there then reasonable price
Through valuation By the third party
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General rule is that risk passes with property unless
otherwise agreed
Property passes when
 goods are ascertained
 contract is made for sale of specific goods in a deliverable
state
 when whatever needs to be done to put specific goods in a
deliverable state is done
 when something that needs to be done to determine price of
specific goods is done and buyer has notice
 when goods are delivered on approval or sale or return basis
when buyer expressly or impliedly accepts goods
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  @
  
  @

  Exceptions to 2

ñ sells with authority of true owner
ñ disposal by mercantile agent
ñ under court order
ñ sale under common law or statutory power
ñ sale under voidable title
ñ sale by seller in possession
ñ sale in market overt
  m 
~   m
m
 A stipulation(demand/specify as a part of
bargain) in a contract of sale with reference to goods
which are subject matter there of , may be a condition
or a warranty

The stipulation which are essential for the main

purpose of the contract and the breach of which
gives rise to right to treat the contract as repudiated
is called

  mection ±12(2)

The stipulation which is collateral(additional but

subordinate) to the main purpose of the contract and
the breach of which gives rise to claim for damages
but not a right to reject the goods and treat it as
repudiated is called  mection ±12(3)
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   •
  ) subject to a contrary
intention,there is an implied condition on the part of the
seller that in the case of sale, he has a right to sell goods
and that in case of the agreement to sell, he will have a
right to sell the goods at the time when property is to pass.

m 

  (sec-15) where goods are sold by
description, there is an implied condition that the goods
shall correspond with the description. This rule is based
on the maxim,´if you contract to sell peas,you cannot
oblige a party to take beans.
m 
  

 
) if the
sale is by sample as well as description, it is not sufficient
that the bulk of the goods shall correspond with the
sample,if the goods do not also correspond with the
description.thus should correspond with both sample as
well description.


      - su

bject to the provisions of this act, and of any other law for a time
being in force,there is no implied condition as to quality or
fitness for any particular purpose of goods supplied. But where
the buyer expressly or by implication makes known to the seller
the particular purpose for which the goods are required.

  

   there is always an implied
condition in a contract of sale that the goods purchased should
be of merchantable quality.thus where goods are brought by
description from a seller,who deals in such goods,there is an
implied condition as to merchantability

 
  
  that the article sold must be of such
quality and in such condition that reasonable man would accept
the article as performance of a promise
 m
 m 
- In the contract of sale by
sample, there is an implied condition-

  
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Implied warranty of quiet possession ±
Buyer will shall enjoy quiet possession
of goods. Buyer shall have the
possession and enjoyment of goods.
Implied warranty of freedom from
encumbrances

Implied warranty annexed by usage of

trade.
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Exceptions-
where the buyer relies on the skill and
judgment of the skill
Merchantability quality of goods ± where
the goods are bought by description.
onsent by fraud ± false representation.
Usage of trade
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Transfer of property Transfer of possession
means transfer of means property just
ownership passes
Risk of loss also passes Risk of loss remains
with ownership to buyer
with the seller
When the goods are
destroyed or damaged Possessor does not
,only the owner can sue have the right to sue
The seller can sue for This is not in case of
price only if the transfer of possession
ownership of goods has
been transferred to the
buyer
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Express terms are those expressly agreed upon and
included in the agreement
Terms implied by custom, usage or statute
Terms are either conditions ± essential ± or
warranties ± subsidiary ± less important
Remedies depend on significance of breached term
 condition treat contract as terminated and sue for
damages
or affirm
 warranty sue for damages only
Implied conditions under male of Goods Act
 that seller has the right to sell the goods
 that unascertained goods when delivered will
correspond with description or sample
 where buyer relies on seller, that the goods are fit for
purpose
 where the goods are bought by description from a
dealer that they are of merchantable quality
Implied warranties under male of Goods Act
 that buyer shall have and enjoy quiet possession of
goods
 the goods shall be free of any charge or encumbrance
Terms implied under sale of Goods Act can be excluded
mimilar terms implied under Trade Practices Act ± non-
excludable
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§ailure to deliver goods or to pay for them will amount to
breach of the sales contract
Remedies of unpaid seller
 lien against goods (sec-47-49)
 right of stoppage in transit
 right of retention of goods
 right of resale (sec-54)
 sue for price if it is due and payable
 sue for damages for non-acceptance
Rights of buyer
 reject the goods
 recover the price
 sue for damages for breach of warranty
 sue for damages for non-delivery
 sue for specific performance
 sue in detinue or conversion
 /
Legislative provisions changeable by
agreement between parties
Auction sale is a contract
Each lot is subject of a separate contract
Bidder makes offer, acceptance is at fall of
hammer. Auctioneer can refuse to accept bid
Normally sellers cannot bid for own goods but
can reserve the right to bid
Auction may be subject to reserve price
Where no reserve auctioneer may refuse to
accept bid ±
can specify this right in sale conditions.