Act of sale of goods

What happens in a sale

There is a transfer of ownership from seller to buyer. Along with transfer of ownership there is
the transfer of risk to the buyer. Risk and ownership will transfer based on the contract. When
the goods are identified and specified.
This happens when it is Ima a deliverable condition that is when the buyer takes the goods. No
process like packaging etc. should be left.
The buyer generally identifies but he can ask the seller also.
Sale of good act is only for moveable goods and not for services.

Conditions and warranty

Condition is the essential part of contract and failure to fulfill condition can lead to cancellation
of contract.
Warranty is not integral but incidental to contract and failure to fulfill warranty doesn’t lead to
cancellation of contract but damages can be paid.

Implied (understood) conditions and implied warrants-only owner can sell

Exceptions-
0. Condition as to title or ownership
0. Sales by an agent
Sales by the court or police of the ceased goods
0. Sales by pledging
0. Sales by a person in possession of goods under a voidable contract
0. Sale made by an unpaid seller

Implied condition
Goods must match description and sample
Goods must be of merchantable quality
In the case of food items it must be wholesome(fresh) item
Implied warranty
Warranty of quite possession
Warranty free from encumbrance (no burden)

Doctrine of caveat(buyer)emptor(beware)
When you buy the goods the buyer must make sure the exception is made. Not for the seller to
tell you what is missing.

Exceptions
0. When the buyer informs the seller of his Requirement and relies on the sellers judgement
then the seller cannot back out of his commitment.
0. In the case of those goods which are known in the market for certain quality then in that case
goods must match that quality.

Advance amount is not part of act of sales

Rules regarding delivery

0. Goods must be delivered as per the contract
0. In case the contract is silent then the default place of delivery is the seller’s place
0. The cost and responsibility of putting the goods in a deliverable condition is that of the seller
unless otherwise specify.
0. Delivery must be at the reasonable time and reasonable place.

Inco terms (not part of syllabus)

0. F term - FOB (free on board) cost is not included in the transport cost which has to be beared
by the seller
0. D term - delivery terms, DDP (delivery duty paid)
0. C term - c means he main carriage Paid for

Sale of goods act deals in goods and services

A buyers purchases for his consumption or for further selling.
Consumer only buys for consuming goods
All buyers can be consumer but not all consumers are buyers

Where one uses something for earning their livelihood then he can claim consumer protection
act which is valid according to the court.
Consumer rights-
right to safety
Right to information
Right to choice
Right to be heard
Right to consumer redressal
Right to consumer education
1.district commission -up to cases of Rs. 20lakhs
2.state commission-up to 1crore
3.national commission-more than 1crore
4.supreme court

Unfair trade practices- saying false statements to make it bought.

Contract of employment - people are answerable to the Organization in terms of discipline etc.,
not covered in consumer protection act

Contract for employment -this is covered under consumer protection act

In india consumer has to fight solely not being supported by govt.

competition commission act-filed against monopolies with more than 50%, if they work against
the law they can be sued under this act.

RERA Act - has to be licensed and registered by the builders.

Restricted trade practice