B-sale of goods

SALE OF GOODS ACT, 1930

The law relating to sale of goods is contained in the Sale of Goods Act, 1930. It has to be read as part of the Indian ontract Act, 1!"# $Sections #%&' and %3'(.

Contract of Sale of Goods  Accordin) to Section *, a contract of sale of )oods is i s a contract +hereb the seller%i' transfers or a)rees to transfer the propert in )oods %ii' to the ber, %iii' for a /one consideration called the price. It sho+s that the epression contract of sale incldes both a sale +here the the sell seller er tran transf sfer ers s the the o+ne o+ners rshi hip p of the the )ood )oods s to the the b ber, er, and and an a)ree/ent to sell +here the o+nership of )oods is to be transferred at a ftre ti/e or sb2ect to so/e conditions to be flfilled later on. he follo+in) are ths the essentials of a contract of sale of )oods%i' Bilateral Bilateral contract: contract: It is a bilateral contract becase the propert in )oods has to pass fro/ one part to another. A person cannot b the )oods hi/self. %ii'T %ii' Transfer ransfer of property: property: he ob2ect of a contract of sale /st be the transfer transfer of propert propert %/eanin) o+nership' o+nership' in )oods )oods fro/ one person person to another. %iii' Goods: he sb2ect /atter /st be so/e )oods. %i4' Price or money consideration: he )oods /st be sold for so/e price, +here the )oods are echan)ed for )oods it is barter, not sale. %4' All essen essentia tiall ele/en ele/ents ts of a 4alid 4alid contr contract act /st be presen presentt in a contract of sale. Distinction between Sale and Agreement Agreement to Sell he follo+in) points +ill brin) ot the distinction bet+een sale and an a)ree/ent to sell%a' In a sale, the propert in the )oods sold passes to the ber at the ti/e of cont contra ract ct so that that he beco beco/e /es s the the o+ne o+nerr of the the )ood )oods. s. In an a)ree/ent to sell, the o+nership does not pass to the ber at the ti/e of the contract, bt it passes onl +hen it beco/es sale on the epir of certain ti/e or the flfil/ent of so/e conditions sb2ect to +hich the propert in the )oods is to be transferred. %b' An a)ree/ent to sell is an eector contract, a sale is an eected contract. %c'An a)ree/ent to sell is a contract pre and si/ple, bt a sale is contract pls con4eance.

(d) (d) If ther there e is an agree agreem ment ent to sell sell and the the goods goods are are destr destroy oyed ed by accident,

the loss falls on the seller. In a sale, the loss falls on the buyer, even though the goods are with the seller. (e) If there is an agreement to sell and the seller commits a breach, the buyer has only a personal personal remedy against against the seller, namely, namely, a claim for damages. damages. But if  there has been a sale, and the seller commits a breach by refusing to_ deliver the goods, the buyer has not only a personal remedy against him but also the other remedies which an owner has in respect of goods themselves such as a suit for conversion or detinue, etc. Sale and Bailment

A "bailment" is a transaction under which goods are delivered by one person (the bailor) to another (the bailee) for some purpose, upon a contract that they be returned or disposed of as directed after the prpose is acco/plished %Section 1*! of the Indian ontact Act, Act, 1!"#'. the )ood he he prop proper ert t in the )oods s is not not inte intend nded ed to and and does does not pass pass on delivery tho)h it /a so/eti/es be the intention of the parties that it shold pass in de corse. 5t +here )oods are deli4ered to another on ter/s +hich indicate that the property is to pass at once the contract /st be one of  sale and not bailment. Sale and Contract for Work and Labour

The distinction between a "sale" and a "contract for work and labour" becomes impo import rtan antt when when ques questi tion on of pass passin in) ) of prop proper ert t aris arises es for  for  consideration.

6o+e4er. these t+o are difficlt to distin)ish. he test )enerall applied is that if a,s a reslt of the contract, propert in an article is transferred to one +ho had no propert therein pre4iosl, for a /one consideration, it is.a sale. +here it is other+ise it is a contract for +or7 and labor. Sale and Hire Purchase Agreement

Sale, is a contract b +hich propert in goods passes fro/ the seller fb the ber for a price.  A hire hire prchase a)ree/enf8 a)ree/enf8 is basicall basicall a contract contract of hire, bt in addition, addition, it ) 4es the hirer an option to prchase the )oods at the end of the hirin) period. onse:entl, ntil the final pa/ent, the hirer is /erel a bailee of )oods and o+nership re/ains 4ested in the bailor. ;nder sch a contract, the o+ner of )oods deli4e deli4ers rs the )oods )oods to perso person n +ho +ho a)ree a)rees s to pa certai certain n stipl stiplate ated d perio periodi dical cal pa/ents as hire char)es. ho)h the possession is +ith the hirer, the o+nership of  the )oods re/ains +ith the ori)inal o+ner. he essence of hire prchase a)ree/ent is that there is no a)ree/ent to b, bt onl an option is )i4en to the hirer to b b pain) all the instal/ents or pt an end to the hirin) and retrn the )oods to the o+ner, at an ti/e before the eercise of the option. Since the hirer does not beco/e o+ner of the )oods ntil he has eercised his option to b, he cannot pass an title e4en to an innocent and bona fide

prchaser. he transa transacti ction on of hire< hire