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the Indian Contract Act, 1872 were repealed and a separate Act called The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.

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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.

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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)].

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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
It is an executory contract
because nothing remains to because something remains
be done.
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

Transfer of risk of loss of

goods does not take place

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5. Rights of
seller against
the buyers
breach

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.

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.

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.

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6. Rights of
buyer against
the sellers
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.

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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 doesnt 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

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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.
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(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.

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implied conditions [Sections 14(A), 15(1), 16(1), 16(2), 16(3), 17]

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:

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(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.

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(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]

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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 sellers 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.

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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
sellers 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 sellers title to the goods is defective, the buyers 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.
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Lets 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:

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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]

(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.

(b) Sale by one of the joint

owners [Section 280]

(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.

(c) Sale by a person in

possession under voidable
contract

(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
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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 sellers title is defective.

(d) Sale by seller in

possession after sale
[Section 30(1)]

(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.

(e) Sale by a buyer in

possession before the
transfer of ownership
[Section 30(2)]

(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.

(f) An unpaid seller [Section

(i) The owner cannot be found with

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54(3)]

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.

(g) Sale by a Finder of Goods (i) The pledger must have made a
[Section 169 of Indian
default in the payment of the debt or
Contract Act 1872]
the performance of the promise at the
stipulated time.
(ii) The pledgee must have given a
reasonable notice to the pledger.
The involvement person must be the
owner of goods.

(h) Sale by a pawnee or

pledgee

The owner of the goods b his statement

or conduct must have lead the buyer to
believe that the seller has the authority
to sell.

(i) Sale by Official Receiver

or
Assignee or Liquidator
(j) Sale by owner by
estoppel

PROPERTY, POSSESSION AND RISK

There are three stages in the performance of a contract of sale of goods by a
seller, viz,
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(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.
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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.

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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
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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
partys 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

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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 transit [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
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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 sellers 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
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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:
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)].

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.

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)].
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.
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.
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)].
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.
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-----------------------------------------------------------------------------------------------------------------------------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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