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SUBMITTED BY:6)
SAIF ALI KHAN (14-MBA-3

11)
SHAHBAZ HASAN(14-MBA-

INTRODUCTION
IN 1930,SECTIONS 76 TO 123 OF THE CONTRACT ACT WAS REPEALED AND A SEPARATE ACT KNOWN AS
THE SALE OF GOODS ACT,

MOST COMMON OF ALL THE COMMERCIAL CONTRACTS

CAME INTO FORCE ON 1 JULY 1930
IT IS A CONTRACT WHEREBY THE SELLER TRANSFERS OR AGREES TO TRANSFER THE PROPERTY IN GOODS
ST

TO THE BUYER FOR A PRICE

MEANING OF CONTRACT OF SALE

ACCORDING TO SECTION 4 OF THE ACT,A CONTRACT OF SALE OF GOODS IS A CONTRACT WHEREBY THE
SELLER TRANSFERS OR AGREES TO TRANSFER THE PROPERTY IN GOODS TO THE BUYER FOR PRICE
Contract of
sale
sales

Agreement to sell

ESSENTIALS OF CONTRACT
2 DISTINCT PARTIES (A BUYER AND A SELLER)
GOODS WHICH FORM THE SUBJECT MATTER
PRICE,(MUST BE MONEY )
TRANSFER OF GENERAL PROPERTY
NO FORMALITIES ARE REQUIRED
ESSENTIAL ELEMENTS OF A VALID CONTRACT

GOODS
ACCORDING TO SEC 2(7) THE TERM GOODS MEANS -EVERY KIND OF MOVABLE PROPERTY OTHER THAN ACTIONABLE

CLAIMS, MONEY, INCLUDES STOCKS AND SHARES ,GROWING CROPS AND THINGS ATTACHED TO OR FORMING PART OF
THE LAND WHICH ARE AGREED TO BE SEVERED BEFORE SALE OR UNDER THE CONTRACT OF SALE

ACTIONABLE CLAIMS AND MONEY ARE NOT INCLUDED IN THE DEFINITION OF GOODS
TYPES OF GOODS: EXISTING GOODS
FUTURE GOODS
CONTINGENT GOODS

PRICE
SEC-2(10) DEFINES PRICE AS MONEY CONSIDERATION FOR A SALE OF GOODS
ESSENTIAL PART OF THE CONTRACT
EXPRESSED IN TERMS OF MONEY
NOT ESSENTIAL THAT THE PRICE SHOULD BE FIXED AT THE TIME OF SALE

TRANSFER OF OWNERSHIP
A CONTRACT OF SALE OF GOODS INVOLVES TRANSFER OF OWNERSHIP FROM SELLER TO THE BUYER.

TRANSFER OF OWNERSHIP OR PROPERTY IN GOODS IS IN FACT THE MAIN OBJECT OF MAKING A CONTACT
OF SALE.

CONDITIONS AND WARRANTIES

SEC 12(1) CONDITION IS A STIPULATION WHICH IS ESSENTIAL TO THE MAIN PURPOSE OF THE

CONTRACT , IT GOES TO THE ROOT OF THE CONTRACT , ITS NON FULFILMENT UPSETS THE VERY BASIS OF
THE CONTRACT

SEC 12(3)-WARRANTY IS A STIPULATION WHICH IS COLLATERAL TO THE MAIN PURPOSE OF THE

CONTRACT.IT IS NOT OF SUCH VITAL IMPORTANCE AS CONDITION IS , IF THERE IS A BREACH OF A

WARRANTY THE AGGRIEVED PARTY CAN ONLY CLAIM DAMAGES AND IT HAS NO RIGHT TO TREAT THE
CONTRACT AS REPUDIATED.

CONDITION AND WARRANTY

CONDITION

IT IS A TERM IN CONTRACT WHICH IS ESSENTIAL

WHEN CONDITION BREACHES?
BREACH OF CONDITION CAN BE BREACH OF
WARRANTY

WARRANTY

IT IS A TERM IN CONTRACT WHICH IS

COLLATERAL

WHEN WARRANTY BREACHES?

BREACH OF WARRANTY CANNOT BE BREACH OF
CONDITION

AUCTION SALE
A SALE BY AUCTION IS A PUBLIC SALE WHERE DIFFERENT INTENDING BUYERS TRY TO OUTBID EACH
OTHER

THE GOODS ARE ULTIMATELY SOLD TO THE HIGHEST BIDDER

THE AUCTIONEER WHO SELLS THE GOODS BY THE AUCTION IS AN AGENT OF THE SELLER(THE OWNER)

RESERVE PRICE
IT IS THE PRICE BELOW WHICH THE AUCTIONEER WILL NOT SALE
THE SALE IS SUBJECT TO A RESERVE PRICE , EVERY BID IS ACCEPTED CONDITIONALLY ON THE RESERVE
PRICE BEING REACHED

WHERE THE SALE IS WITHOUT RESERVE , THE GOODS WILL BE SOLD TO THE HIGHEST BIDDER
IF THE SELLER MAKES USE OF PRETENDED BIDDING TO RAISE THE PRICE , THE SALE IS VOID ABLE AT THE
OPTION OF THE BUYER

SALE BY SAMPLE
A CONTRACT OF SALE IS A CONTRACT FOR SALE BY SAMPLE WHERE THERE IS A TERM IN THE CONTRACT
EXPRESS OR IMPLIED TO THAT EFFECT.

BULK SHALL CORRESPOND WITH THE SAMPLE IN QUALITY

THE BUYER SHALL HAVE A REASONABLE OPPORTUNITY OF COMPARING THE BULK WITH THE SAMPLE
THE GOODS SHALL BE FREE FROM ANY DEFECTS