DEFINITION OF SALES OF GOODS ACT, 1979

The sales of goods act, 1979 is a British Act of Parliament. Basically this act is concerned regarding the buying and selling of movable goods. It regulates contracts in which goods are sold and bought. To know more about this law, at first we need to have some concepts about buyer, seller and goods. Buyer: According to Sec 2(3) if a person buy a product or agree to buy any product in future then he is treated as buyer. Ex: Rahim is buying a laptop. Here Rahim is the buyer.

Seller: According to Sec 2(3) if a person sell a product or agree to sell any product in future then he is treated as seller. Ex: Rahim is selling a book. Here, Rahim is the seller.
Goods: According to Sec 2(7) goods can be anything which is equable effect in money. Ex: Rahim is buying a laptop at the price of tk. 40000. Here Laptop is the good because it has equable effect in money.

ESSENTIAL ELEMENTS OF A CONTRACT OF SALE

After express an offer towards offeree if he/she will accept all the terms and conditions of offeror unqualifiedly and without any bargain then it is called acceptance. But if the offeree will bargain with the terms and conditions of the offeror then it is called counter offer. And a counter offer destroys the original offer. Then the offeree will become the offeror. In the simple word, we can say that if somebody wants to accept any offer he just has to say yes and he cant add, change, modify, bargain with the terms of the offeror.

Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000. Here, If Karim wants to buy that laptop then he have to say yes. Karim cant add, change, modify, bargain with Rahim. It is an acceptance.
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RULES REGARDING ACCEPTANCE

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It must be an absolute and unqualified acceptance of all the terms of the offer: It must be absolute and the terms and conditions of the offer must be understandable by the offeree. Ex: Rahim has two laptops. He wants to sell his one laptop to Karim at the price of tk. 30000. Karim is agreed to buy that. Here, Rahim wants to sell his black laptop and Karim thinks to buy Rahims red laptop. The subject matter is not absolute. Conditional acceptance: If the offeree will accept all the terms and conditions of the offeror besides that if he will put some additional condition from his part then it is called conditional acceptance and conditional acceptance is not valid in the eye of the law. Ex: Rahim wants to sell his laptop to Karim at the price of tk.
30000. Karim accept the offer but he wants to pay 25000 tk. Here, though Karim accept Rahims offer, he put an additional condition based on main condition.
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The acceptance must be expressed in some usual or reasonable manner: The offeree may accept the offer by using usual methods like telephone, telegram, email, by post or by word of mouth. On the other hand it also may accepted by conducting with offeror based on offerees current situation. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000. Karim accept the offer . Here, Karim accept the offer by communicating with Rahim.
Time of acceptance: The offeree must accept the offer during the offer period which is given by the offeror. If offeror will not prescribe any time duration then offeree must accept the offer within a reasonable time. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000 and if Karim wants to buy this he have to pay the money within 3 days. Here, Rahim prescribe time duration. This is time of acceptance.

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Uncommunicated or mental acceptance doesnt result in a contract: If the contracting parties are not communicated with each other then that is not treated as an acceptance. And the contracting parties must be mentaly stable. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000. Karim communicates with Rahim and agree to buy. Here, Karim communicates with Rahim and agreed to buy. So without communication, it is impossible to make an acceptance. The mode of acceptance: the mode of acceptance means the medium of acceptance. If the offeror will prescribe any mode of acceptance after that if the offeree wants to accept that offer then he has to follow that mode. Otherwise the offeree will follow the usual or reasonable mode of acceptance. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000 and if Karim wants to accept that offer he has to give an email to Rahim. Here, Rahim prescribe the mode of acceptance. If Karim wants to accept the offer then he has to follow the mode.

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When accept is complete: When the offeror will get the knowledge of acceptance than and then the acceptance will be completed. The offeror can get the knowledge both directly or indirectly. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000. Karim communicates with Rahim and agree to buy. Here, acceptance is completed when Rahim get the knowledge of acceptance from Karim. The acceptance must be made while the offer is in force: The offeree must be accepted the offer before the offeror withdraw the offer. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000. Here, If Karim agrees with Rahim then he must be informed Rahim before Rahim withdraw the offer.

POSTAL RULE
This is an exceptional rule regarding acceptance. A person can accept the offer by post only in two situations. Such as: When the offeror fixed the method for post. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000. If Karim agrees with Rahim then he must informed that to Rahim by post. Here, Rahim prescribe the mode. In this situation Karim has to follow the postal rule.

The offeree doesnt have any option rather then use this method. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000. But Karim is now staying in a very rural area. He has no option without by post to accept Rahims offer. Here, Karim must follow the postal rule.
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HOW THE POSTAL RULE WILL WORK

If the offeree write down the correct name and address of the offeror on the envelope and when he will put the envelope into the post office than and then acceptance will be completed. After that if the letter will be lost on the way or if it will be delivered into the wrong address then all the responsibilites has to be taken by the offeror. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000. If Karim agrees with Rahim then he must informed that to Rahim by post. Then Karim writes a letter and post it to post office. Then Rahim have to take all the responsibilities of that letter.
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HOW AN OFFER CAN BE ENDED

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By revocation: Revocation means withdraw. If the offeror withdraws the offer before offeree accept the offer then the offer is ended. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000. But he withdraws his offer before Karim accept that. Then the offer is ended. By laps of time: If the offeror prescribe any time limitation and the offeree cant accept that offer within that time period then the offer will be ended. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000 and if Karim wants to buy this he have to inform Rahim within 3 days. But Karim didnt do that. Then the offer will be ended. After expire of a reasonable time: If the reasonable time for the acceptance is expired then that offer will be ended. Ex: Rahim wants to sell 1 ton of tomato to Karim at price of tk. 30000. Here, If Karim doesnt informed in right time then it spoiled after 3 days. So the offer is ended on that time.

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By failure of a condition precedence: When a condition is fixed earlier but couldnt be followed later then it is called failure of condition precedence. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000 and if Karim wants to buy this he have to pay the money within 3 days. Karim accepts Rahims offer. But Karim couldnt pay the money later. Then it is failure of a condition precedence. By death or insanity: After accept the offer if offeree die or become mad then the offer will be ended. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000 and Karim accept Rahims offer. But before pay the money, he became mad. Then the offer will be ended. Counter offer: After make the offer against offeree if he bargain with the terms and conditions of the offer then it becom a counter offer. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000 and if Karim says that he wants to pay 25000 tk. For the laptop then Rahims offer will be ended.

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By refusal: if the offeree refuse the offer then the offer will be ended. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000 and Karim refuse that offer. Then this offer will be ended. By acceptance: When the offeree accept the offer of the offeror without any kind of bargain then the offer will be ended. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000 and Karim accept that offer without any bargain. Then the offer will be ended.

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REVOCATION OF AN ACCEPTANCE

There are two sets of law for revocation of an acceptance.

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According to Indian law: According to section 5 of the contract act, 1872 says that, after accepting the offer the offeree can withdraw the acceptance until it goes to the knowledge of the offeror. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000. Karim says to his girlfriend, you contact with Rahim and say him that I want to buy that laptop. After that if Karim say to his girlfriend, You dont need to say anything to Rahim. Then it is the revocation of that acceptance. According to English law: English law says that once you have accepted the offer you cant withdraw your acceptance at all. Ex: Rahim wants to sell his laptop to Karim at the price of tk. 30000 and Karim accept that offer. After that he cant withdraw his acceptance.

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