Outline of the chapter

Definitions
Sales & Agreement to sale
Sales & Hire purchase agreement
Sales & Barter exchange
Sales & Bailment
Sales & Contract for work materials
Subject matter contract of sell
Document of title of goods
Stipulation as to time


Definitions
Buyer and Seller:

Buyer means a person who buys or agrees to buy goods
[Sub Section(1)]

Seller means a person who sells or agrees to sell goods
[Sub Section (13 )].

The two terms, buyer and seller are complementary and
represent the two parties to a contract of sale of goods.
Both the terms are, however, used in a sense wider than
their common meaning.
Contract for sales

Contract of Sale of Goods is a
contract between buyer and
seller intending to exchange
property in goods for a price.
Section 4 (1) of the Sale of Goods Act,
1930
Essentials of contract of sale
There must be at least two parties.
The subject matter of the contract must necessarily
be goods.
A price in money (not in kind) should be paid or
promised.
A transfer of property in goods from seller to the
buyer must take place.
A contract of sale must be absolute or conditional
All other essential elements of a valid contract must
be present in the contract of sale.
Sale and an agreement to sell
where under a contract of sale
the property in the goods is
transferred from the seller to
the buyer, the contract is called
a sale.
the Section 4(3) of the Sale of Goods Act,
1930
Sale Vs an agreement to sell
The property in the goods
passes to the buyer and
along therewith the risk.
It is an executed contract.
i.e. Contract for which
consideration has been
paid.
The seller can sue the
buyer for the price of the
goods because of the
passage of the property
therein to the buyer.
Since property in the
goods does not pass to
the buyer, the risk also
does not pass to him.
It is an executor
contract, i.e. Contract
for which consideration
is to be paid at a future
date.
The aggrieved party can
sue for damages only
and not for the price,
unless the price was
payable at a stated
date.

Sale Vs an agreement to sell
A subsequent loss or
destruction of the goods is
the liability of the buyer.

Breach on the part of the
seller gives the buyer
double remedy; a suit for
damages against the
seller and a proprietary
remedy of recovering the
goods from third parties
who bought them
Such loss or destruction
is the liability of the
seller.


The seller, being still the
owner of the goods,
may dispose of them as
he likes, and the buyers
remedy would be to file
a suit for damages only.
Sales & Hire purchase agreement
Property in the goods is
transferred to the buyer
immediately at the time
of contract.
The position of the
buyer is that of the
owner of the goods.
The buyer cannot
terminate the contract
and is bound to pay the
price of the goods.
The goods passes to
the hirer upon payment
of the last installment.
The position of the hirer
is that of a bailee till he
pays the last
installment.
The hirer may, if he so
likes, terminate the
contract by returning the
goods to its owner
without any liability to
pay the remaining
installments.
Cont
The seller takes the risk
of any loss resulting
from the insolvency of
the buyer.

The buyer can pass a
good title to abonafide
purchaser from him.

Tax is levied at the time
of the contract.
The owner takes no
such risk, for if the hirer
fails to pay an
installment the owner
has right to take back
the goods.
The hirer cannot pass
any title even to
abonafide purchaser.
Tax is not leviable until it
eventually ripens into a
sale.
Sales & Bailment
The property in goods is
transferred from the
seller to the buyer.

The return of goods in
contract of sale is not
possible.

The consideration is the
price in terms of money.

There is only transfer of
possession of goods
from the bail or to the
bailee for any of the
reasons like safe
custody, carriage, etc.
The bailee must return
the goods to the bailor on
the accomplishment of
the purpose for which the
bailment was made.
3. The consideration may
be unwarranted

Sales & Contract for work materials
A
contract of sale contemplates
the delivery of goods whereas
a contract for work and
material involves exercise of
skill and labour by one party in
respect of materials supplied
by another
Subject-matter of Contract of Sale
Goods:
Goods means every kind of movable property
other than actionable claims and money & 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
[Sub Section 2 (7)].

Existing goods
Such goods as are in existence at the time of the
contract of sale, like those owned or possessed by
the seller
Cont...
Specific goods means goods identified and agreed upon
at the time the contract of a sale has been made.
Ascertained goods means commonly use as similar in
meaning to specific goods
Generic goods defined only by description and not
identified and agreed upon.

Future goods

means goods to be manufactured or produced or
acquired by the seller after making the contract of
sale [Section 2 (6)]




Cont
Contingent goods

These are the goods the acquisition of which by the
seller depends upon a contingency which may or
may not happen

Contingent & future goods

The procurement of contingent goods depends upon
a contingency whereas it is not so in case of future
goods

Document of title of goods
Bill of lading
Acknowledges receipt of goods on board a ship and is
signed by the captain of the ship or duly authorized
representative

Dock warrant
Issued by a dock owner, giving details of the goods and
certifying that goods are held to the order of the person

Warehouse-keepers certificate
Document issued by the warehouse-keeper stating goods
specified in the document are in his warehouse
Cont
Railway receipt
Acknowledge receipt of the goods. Presented by the
holder at he destination to take deliver of the goods

Delivery order
Document containing an order by the owner of the goods
to the holder of the goods on his behalf, asking him to
delver the goods to the person named in the document

Stipulations as to time

Stipulations relating to time of payment

There are not of the essence of a contract of sale,
unless a different intention appears from the contract

Stipulations not relating to time of payment but
on delivery of goods

The delivery must be made at the fixed time, otherwise
the other party is entitled to put an end to the contract