case study on sale of goods act 1930

Case Analysis: Sujanmal v/s Radhey Shyam Agrawal

• Whether the defendants committed breach of contract and
• If the breach had been committed, what is the date of such breach?
• Reasonable time for performance of contract. Though this issue was not raised by the parties to the contract, the court took Suo Moto to determine the time as to the performance. The court depended upon the facts of the case for this. The distance between the defendant's firm and place of delivery was 12 miles and the stock was already available. So, the reasonable time was found to be 1 month.  Analysis: Although ignored, but it is a very crucial point as when the contract is not performed within a reasonable time, it might frustrate the whole objective of the contract. If the defendant had not asked for payment in advance, the contract might have been performed after that day. As the price of Rasada Vanaspati increased with effect from 14/02/64, the plaintiff would have suffered huge losses. Therefore, the court took justified step in determining the reasonable time.  
• Non-payment- When the buyer denies paying for goods after the delivery.
• Violation of Condition- If the contract is based on certain condition/conditions and that condition is breached, the contract is said to be breached.
• Violation of Warranty- Warranty is a stipulation collateral to the main purpose of contract. If the warranty is breached, the contract is deemed to be breached.
• Installment deliveries- If the delivery is to be made in installment and the buyer refuses to pay for a certain in tustallment or all the installments or the seller makes defective delivery in one or more installments, the contract is breached.
• Non-acceptance of good- When the buyer refuses or neglects the delivery of goods, the contract is breached on his part.
• Non-delivery of good- If the seller does not deliver the goods to the buyer after entering into a contract, the contract is breached on his part.
• Payment and Delivery are concurrent conditions The court referred to Section 32 of the act and held that the plaintiffs did not show readiness and willingness to pay. Analysis: The plaintiffs can argue against this point by saying that they were ready and willing to pay as if not, they would never have been entered into the contract of sale. The point is nevertheless correct but after receiving the letter asking for payment in advance, they were bound to expressly show their readiness and willingness. Had the letter for advance payment not been sent to them, it was not required of them to show express willingness as it was already implied. However, they could still not blame the defendants for breach because they had not applied for delivery which is a necessary condition as per Section 35.  
• The Sale of Goods Act, 1949, § 32, No. 3, Acts of Parliament, 1930 (India).
• Indian Contract Act, 1872 § 3, No. 9, Acts of Parliament, 1872 (India).
• Sujanmal v. Radhey Shyam Agrawal, AIR 1976 Raj 98.
• Firm Birdhi Chand v. Ramdeo, 1970 RLW 148=ILR 1969 19 Raj. 481.
• Jai Mishra, Breach of Contract under Sale of Goods Act,1930, Legal Services India (Mar. 25, 2022, 12:22 PM), https://legalserviceindia.com/legal/article-4303-breach-of-cpntract-under-sale-of-goods-act-1930.html.

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• Sale of Goods Act

The Sale of Goods Act, 1930

This article is written by Kishita Gupta , a Unitedworld School of Law, Karnavati University, Gandhinagar, graduate. The article deals with a thorough discussion of Sale of Goods Act, 1930. The article will also discuss various case laws on the subject.

It has been published by Rachit Garg.

Table of Contents

Introduction 

We are aware that every business entity runs by buying or selling commodities. In India, such sales of goods are governed by the Sale of Goods Act, 1930 . This Act has been codified as a separate enactment of the law relating to the sale of goods, which was contained in Sections 76 to 123 of the Indian Contract Act of 1872 . Those sections of the Contracts Act have been repealed by the Sale of Goods Act. This was done because the provisions of the Contract Act were found to be inadequate to deal with the new situations that were arising due to an increase in mercantile transactions in the wake of rapid industrialisation. Hence, a new law was formed to deal with the sale of goods which incorporates various provisions of the English Sale of Goods Act, 1893 . However, despite the separate legislation in terms of the Sale of Goods Act, the Contract Act continues to apply to the contracts relating to the sale of goods. The Act lacks in defining some of the expressions and words that are otherwise defined in the Contract Act. In this article, the author will be discussing the Sale of Goods Act, 1930 in detail by analysing all the important provisions and case laws. 

Definition clause of the Sale of Goods Act, 1930

Let us begin with a thorough understanding of the definition clause of the Act for a better understanding. Section 2 of the Sales of Goods Act of 1930 deals with the definitions relating to the subject. Some of the clauses of Section 2 are mentioned below:

In clause 1 of Section 2, the term ‘buyer’ is defined to include both a person who actually purchases the goods and a person who is almost willing to do so. However, it was observed in Helby v. Mathews (1895) that a person is not regarded as a buyer if an agreement essentially grants him the option to purchase the products without subjecting him to any legal obligation to do so.

Delivery 

Clause 2 defines the term ‘delivery’ to involve a transaction of a transfer of possession which is done voluntarily. Delivery can be actual or constructive. It becomes ‘actual’ when the buyer receives the actual products or receives the key to the warehouse where the goods are kept. Whereas, when a delivery is made without affecting the custody or actual ownership of the item, such as when attornment (acknowledging) a delivery or making a symbolic delivery, it is said to be a constructive delivery. 

Goods 

Clause 7 deals with the “goods,” which refers to any movable property that is neither money nor actionable claims. 

The following list of items is considered goods as per the interpretations given by the Indian judiciary:

• The shares of a company were considered goods by the court in Bacha F. Guzdar v. CIT (1955) .
• While Rash Behari v. Emperor (1936) held that gas and electricity are not goods, Associated Power Co. v. Ram Ratan (1970) held electricity to be ‘goods’.
• The ‘Standing timber’ on land which was agreed to be severed from the land before the sale, was held to be goods in the case of State of Maharashtra v. Champalal (1971) .
• The interest of the partners in the partnership assets which consists of any immovable property was considered to be a movable property and thus good in the case of Narayanaapa v. Bhaskar Krishnappa (1966) .
• Sugarcane which was supplied to a sugar factory was considered to be good in the U.P. Coop. Cane Unions Federations v. West U.P. Sugar Mills Assn. (2004) .

The following list of items was considered to be ‘not goods’ under this Section:

• The goods supplied by a building contractor in the execution of building construction are not goods as per the case of Mahadeo v. State of Bombay (1959) .
• Where a person entrusts documents to his lawyer, those documents will not be considered goods under this Section as per the case of R.D. Saxena v. Balram Prasad Sharma (2000) .
• The sale and purchase of lottery tickets are actionable claims which are excluded from the definition of goods. Therefore, it will not be goods as was held in the case of Union of India v. Martin Lottery Agencies Ltd. (2009) .

Specific goods

Clause 14 of Section 2 deals with ‘Specific Goods.’ Specific goods are utilised as an alternative to generic or unascertained goods. The items are specific if they are identified at the moment of sale. However, they are unascertained goods if the items are not identified at the moment of the sale. For example, the sale of a car in a person’s possession would be considered to be the sale of a specific good. Whereas a sale of a car from a showroom that contains different variants of a car is a contract for the sale of unascertained goods. 

Formation of a contract 

What is a contract of sale.

Section 4 of the Act discusses sales and the agreement to sell. The term “contract of sale” is generic in nature. It tends to include both agreements to sell and sale. It was formerly called “bargain and sale.”

Subsection 3 of Section 4 defines the sale and the agreement to sell. The contract of sale is known as a sale when the property in the products is transferred from the seller to the buyer under it, thereby transferring ownership from the seller to the buyer. A sale can also be called an executed contract of sale. However, a contract is referred to as an agreement to sell when the transfer of property in the goods is supposed to happen at a future date or is dependent on the fulfilment of a subsequent condition. An agreement to sell may also be called an executory contract of sale.

It was held in the State of Uttaranchal v. Khurana Brothers (2011) that when the time elapses or the condition gets fulfilled, at that time an agreement to sell becomes a sale. 

Subsection 1 also permits a person who owns the goods partially to sell the goods or transfer the ownership to that extent.

In Camera House, Bombay v. State of Maharashtra (1969) , the Bombay High Court ruled that providing a print, processing film, and taking a picture in a studio are all separate transactions. Therefore, it is obvious that the first two contracts call for the use of a photographer’s artistic talent and labour. However, the final contract for providing copies of it to clients is a contract of sale.

Absolute and conditional contracts of sale

A contract of sale may be either absolute or conditional. When the property is actually sold to the buyer and transferred completely, it is considered absolute. If the parties annex conditions to the contract, it is conditional. These situations could be either subsequent or preceding. When a sale is to be completed subject to the fulfilment of a specific condition, the condition is known as a “condition precedent.” It is common for an auction sale of goods to include a clause stating that if the purchase price is not made within a certain period of time, the item may be resold. In this scenario, there is a real sale when the property is transferred to the buyer, but if the transaction is not completed, the seller retains ownership of the goods.

Difference between sale and agreement to sell

• A sale results in the transfer of the buyer’s general ownership of the items, or it generates a jus in rem . An agreement to sell does not transfer property; rather, it creates a jus in personam that allows either party to take legal action against the other’s person and general estate if the other fails to uphold his end of the bargain. ( Sales Tax Officer v. Buddha Prakash Jai Prakash (1954) )
• After a sale, if the purchaser does not pay for the items, the seller may file a lawsuit under Section 55   (suit for price) to recover the purchase price. When there is just an agreement to sell anything and the buyer refuses to take delivery of the goods and pay for them, the seller may only bring a claim for damages under Section 56 (damages for non-acceptance).
• If there is a sale agreement in place and the seller breaches it, the buyer alone has a claim for damages as their own remedy. The seller is still the rightful owner of the items, and he is free to dispose of them however he sees fit. But if a sale has already been made and the seller breaches it, the buyer is likewise entitled to the same legal recourse against the seller as an owner of the goods would have in relation to the items themselves, such as a suit for conversion or detinue.
• If there is a sale agreement and the products are destroyed, the seller is responsible for the loss; nevertheless, if there has been a sale, the buyer is responsible for the loss even though the things may not have actually been in his possession.

What are the formalities of the contract

Section 5 provides for the bare formalities for making “contracts of sale.” 

The following prerequisites must be met for a contract to be formed:

• The making of a purchase or sale offer and the acceptance of that offer.
• Delivery arrangements for goods or services may be immediate, simultaneous, in instalments, or in the future.
• Making provisions for the price paid. The fee may be paid in whole immediately, in instalments over time, or all at once.

The basic requirements for a contract of sale are as follows:

• It may be in writing.
• It may be by word of mouth.
• It may be partly oral or written.
• It may be implied from the conduct of parties or by the course of their business.
• The law allows for official written instruments to be sealed in the case of the government and some statutory corporations “Subject to the provisions of any law for the being in force” applies to this group.

A Constitution Bench determined in Poppatlal Shah v. The State of Madras (1953) that the phrase “sale of goods” is a composite statement made up of several components or ingredients. The exchange of money or the promise to exchange money, the delivery of goods, and the actual transfer of title are the components of a contract of sale. However, until the buyer becomes the legal owner of the goods, the sale has not been completed.

Subject matter of a contract

Existing or future goods.

As per Section 6 , the following types of existing or future goods form a part of the subject matter of the contract.

• The goods may be existing or whose possession will happen in the future.
• The goods whose acquisition is dependent on a contingency.
• Where there is a present sale of future goods.

Goods perishing before making a contract

Only specific goods are covered under Section 7 . It states that the contract is void if the goods have expired at the time of the contract without the seller’s knowledge. This Section is based on the principle that a contract is void if both parties are in error regarding a fact that is material to it.

The Section further states that the contract is void if the products have been sufficiently damaged that they no longer match the contract’s description without the seller’s knowledge. The seller’s knowledge is crucial in this situation.

Goods perishing before sale but after an agreement to sell

Section 8 deals with the case where the goods perish, etc., after the agreement to sell is made and before the risk passes to the buyer. It applies only to specific goods.

What are the conditions and warranties

Sections 14 to 17 of the Sale of Goods Act of 1930 deal with implied conditions and warranties.

Implied conditions

Implied conditions as to title.

According to Section 14(a) , in every contract of sale, unless the circumstances of the contract are such as to show a different intention, there is an implied condition on the part of the seller that, in the case of a sale, he has a right to sell the goods.

The fundamental yet crucial implied terms on the part of the seller are as follows in any contract of sale:

• First off, he is legally authorised to sell the goods.
• Second, if there is a sale agreement, he will have the right to sell the products when the contract is fulfilled.

As a result, the buyer has the right to reject the products if the seller does not have the title to sell them. He has the right to receive his entire purchase price back.

The case of Rowland v. Divall (1923) observed that if the seller has no title and the buyer has to give up the goods to the real owner, he is entitled to a return of the price.

Implied condition in sales by description

Section 15 of the Act states that there is an implied condition that the products meet the description in a sale of goods by description. There is a condition that the goods shall meet the description.  It is a fundamental requirement of the contract, and if it is breached, the buyer is entitled to reject the goods regardless of whether they can be inspected.

Implied condition as to the quality of fitness

Section 16 lays down exceptions to the rule of caveat emptor. These are as follows:

• Implied condition as to the quality or fitness [Section 16(a)]

The following are the essentials of this condition as mentioned in sub-section (1):

• The buyer makes known to the seller the particular purpose for which the goods are required.
• The buyer relies on the seller’s skill or judgement.
• The goods are of a description dealt in by the seller, whether he be the manufacturer or not.
• Implied condition as to merchantables.

The second exception, as stated in sub-section (2), is when the goods are purchased by description from a seller, whether or not he is the manufacturer, who deals in goods of that description. There is an implied condition that the goods must be of merchantable quality in such circumstances.

Implied condition on sale by sample

When there is an express or implied clause in the contract to that effect, Section 17 considers the sale to be by sample. The seller expressly assures that the goods sold on a sample sale should match the description of a small parcel approved at the time of the transaction.

Implied warranties

Implied warranty of quiet possession.

As per Section 14(b), every contract of sale contains an implied warranty that the buyer will have and that they shall enjoy quiet possession of the goods unless the conditions of the contract indicate a different condition. The seller is responsible for compensating the buyer for any damages if this warranty is breached.

Implied warranty that goods are free from encumbrances

Section 14(c) states that there is an implied warranty from the seller that the goods are unencumbered by any charge or encumbrance. The seller is responsible for compensating the buyer for damages if it is later discovered that the goods are subject to a charge in the favour of a third party.

Expressed conditions and warranties

A provision in a legal agreement that stipulates that something must be done or exist is how the term is defined in the dictionary. The term “expressed conditions” refers to clauses that both parties agree to include in the contract and that are necessary for it to work. Those warranties that are included in the contract and are typically accepted by both parties are referred to as “expressed warranties.”

Effects of the contract 

Transfer of property between seller and buyer , transfer of property in the sale of specific or ascertained goods.

In cases where the goods are specific and ascertained as stated in Section 18 , Sections 19 to 22 govern their transfer. The following is explained as follows:

Property passes when intended to pass  

According to Section 19 of the Act, the property only becomes transferable when both parties to a contract intend it to. Whether that stage has been reached in each case depends on the creation of a contact. Regard must be given to the contract’s terms, the parties’ behaviour, and the case’s circumstances in order to determine the parties’ intentions.

Specific goods in a deliverable state  

According to Section 20 , in the event of an unconditional contract of sale for specific commodities in a deliverable state, the property in the goods passes to the buyer at the period designated by the parties. When an unconditional contract of sale for “particular things” in a “deliverable state” is made, the property in the goods passes to the buyer at the time the contract is made, according to Section 20, which also contains the first rule for determining the parties’ intention.

Specific goods to be put into a deliverable state

Section 21 states that it is irrelevant if the price payment or the time of delivery of the goods, or both, is delayed where there is an unconditional contract for the sale of specific goods in a deliverable form. The property in the goods goes to the buyer at the time the contract is made.

Specific goods are in a deliverable state but the seller has to do something to ascertain the price

Section 22 states that when there is a contract for the sale of specific goods in a deliverable condition but the seller is required to weigh, measure, test, or carry out another action with regard to the goods in order to determine the price, the property does not transfer until the seller carries out the required action and notifies the buyer of it.

The Supreme Court outlined the structure of the provisions relating to the transfer of title of goods in the case of Contship Container Lines Ltd. v. D.K. Lall (2010) . According to Section 19, in a contract of sale of specific or ascertained goods, the property in them is transferred to the buyer at the time specified in the contract by the parties, and for the purpose of determining the parties’ intention, consideration must be given to the contract’s terms, the parties’ behaviour, and the circumstances of the case. The rules for determining the parties’ intentions for the moment at which the property is to pass to the buyer are set forth in Sections 20 to 24 of the aforementioned Act.

Transfer of property in the sale of ascertained goods and appropriation

According to Section 23 of the Act, when goods of that description are unconditionally appropriate to the contract, either by the seller with the assent of the buyer or by the buyer with the assent of the seller, the property in the goods passes to the buyer. This applies when the contract is for the sale of unascertained goods or future goods by description. Additionally, if the seller does not reserve the right to dispose of the goods when delivering them to the buyer, a career, or another bailee for transmission to the buyer, he is believed to have unconditionally appropriated the items to the contract.

The Supreme Court in the case of Arihant Udhyog v. the State of Rajasthan (2017) observed that it is evident from a joint reading of Sections 23 and 24 that title to goods only transfers from the seller to the buyer upon a sale of those things. The purpose of the parties with respect to the conditions of the contract must be determined in order to determine when such a sale fructifies and the property passes. The property in goods passes when they are in a deliverable state and there is an unconditional contract for the sale of certain things, unless it is clear from the terms of the contract that there is no such purpose.

Transfer of title

“ Nemo dat quod non habet,” a Latin maxim, states that no one can give what they do not have. The underlying idea behind the transfer of title is this. These rules regarding the transfer of title are outlined in Sections 27 – 30 of the Sale of Goods Act of 1930. Let us have a look at it in detail.

Sale by the person, not the owner

As a general rule, no man can sell goods or give a good title to them unless he is the owner, or someone has his authority or consent, i.e., an agent. The rule is the same, although the sale is accompanied by a transfer of a bill of lading, delivery order, warrant, or similar documents. 

The sale by a person who is not the owner is covered under Section 27 . Consider a sales contract where the seller –

• Is not the rightful owner of the goods.
• Does not have the owner’s permission to sell the products.
• Has not received permission from the owner to act as his agent in selling the items
• In these situations, assuming the owner’s actions disallow the seller’s authorization to sell, the buyer does not obtain a superior title to the goods than the seller did.

Exceptions to Section 27 of the Sale of Goods Act, 1930

The following are the exceptions to the rule that no seller of goods gives to the buyer thereof a better title than his own, namely, –

Sale by a mercantile agent (Section 27)

Consider a mercantile agent who, with the owner’s permission, is in possession of the goods or a document proving ownership of the items. When functioning as a mercantile agent in the regular course of business, such an agent is permitted to sell the products. If the buyer acts in good faith and has no cause to suspect that the seller has the legal authority to sell the items, the sale shall be deemed valid. In this situation, the transfer of title is legitimate.

Sale by one of the joint owners (Section 28)

Goods are usually bought under joint ownership. The goods are frequently held in the possession of one of these joint owners with their consent. If this person, who is the only owner of the goods, sells them, the buyer becomes the new owner of the goods’ property. As long as the buyer acts in good faith and has no grounds to suspect that the seller has the authority to sell the goods, this is permissible.

Section 28 lays down three conditions for validating a sale by one of the co-owner. These are as follows:

• He must be in sole possession by permission of his co-owners.
• The purchaser acts in good faith, i.e., with honesty.
• The purchaser had no notice at the time of the contract of sale that the seller had no authority to sell.

Sale by a person in possession under a voidable contract (Section 29)

Take into account a person who obtains possession of specific goods through a contract that can be cancelled owing to pressure, deception, fraud, or undue influence. The buyer obtains a good title to the goods if this individual sells them before the original owner of the goods terminates the contract. This is covered under Section 29 of the Act.

Sale by a person who has already sold the goods but continues to have possession [Section 30 (1)]

As per Section 30(1) , the following conditions enable the seller to pass a good title:

• The goods or the documents proving ownership of the goods must remain in the seller’s possession. After the buyer receives the goods, possession of them as a hirer or bailee is not acceptable.
• Either the buyer received the goods or received the title documents, whichever came first. A simple sale, commitment, or other disposition arrangement won’t cut it.
• Good faith and the second buyer’s lack of knowledge of the first sale.

Sale by buyer obtaining possession before the property in the goods has vested in him [Section 30 (2)]

Consider a buyer who, with the seller’s consent, takes possession of the goods before the property in them is transferred to him. He is free to dispose of the goods by selling, pledging, or giving them away.

The second buyer acquires a fair title to the goods if he accepts delivery of them in good faith without being made aware of the lien or any other claim of the first seller.

A hire-purchase agreement, which gives the beneficiary personal possession of the goods and the option to buy them unless a sale is agreed upon, is an exception to this norm.

Performance of the contract

Rights of the seller under the sale of goods act, 1930.

• To reserve the right to dispose of the goods until certain conditions are met in accordance with Section 25(1).
• To consider a sale on approval to be completed when the buyer conveys his acceptance, performs an act adopting the sale, or retains the goods after the stated date (or a reasonable amount of time) without providing notice of rejection. (Section 24)
• To only deliver the goods upon request from the buyer. ( Section 35 )
• To provide the goods in instalments when agreed upon. [ Section 39(1) ]
• To assert a lien and maintain ownership of the items until the purchase price is paid [ Section 47(1) ]
• Until the price is paid, the goods may be stopped in transit and returned to the owner [Sections 49(2) and 50 ].
• To resell the goods in certain conditions. ( Section 54 )
• Keeping the goods from being delivered until the buyer acquires ownership. [ Section 46(2) ]
• When ownership of the goods has been transferred to the buyer or when the price is due on a specific date under the terms of the contract and the buyer does not make the payment, the seller may bring a price claim against the buyer. [ Section 55 ]

Duties of the seller under the Sale of Goods Act, 1930

• To make the necessary arrangements for the buyer to receive ownership of the goods.
• Determining and aligning the goods to the sale contract.
• To transfer the buyer’s legal and complete ownership of the goods.
• To fulfil the contract’s requirements for the delivery of the goods. ( Section 31 )
• To guarantee that the provided goods adhere to any implied or stated conditions or warranties.
• To prepare the goods for delivery and deliver them as and when the buyer requests. (Section 35)
• The seller must fulfil the obligation to deliver the items on time, or at least by the agreed-upon hour and reasonable time. [ Sections 36(2) and (4) ]
• To pay for all costs associated with and related to making a delivery, up until the point at which the goods are placed in a deliverable state. [Section 36(5)]
• To provide the goods in the predetermined quantity. [ Section 37(1) ]
• The seller must ensure that only when the buyer requests it, deliver the goods in phases. [ Section 38(1) ]
• The seller must make insurance arrangements for the goods while they are in the carrier’s care or transfer. [Section 39(2)]
• To promptly notify the customer when the goods are being shipped by sea so that he can arrange for insurance [Section 39(3)]

Rights of the buyer under the Sale of Goods Act, 1930

• To receive the items in accordance with the contract. (Sections 31 & 32 )
• Rejecting the goods when they don’t match the contract’s specifications for description, quality, or quantity. (Section 37)
• When goods are given in instalments without a written agreement to that effect, the contract may be terminated. [Section 38(1)]
• The seller must inform the buyer when the goods are being shipped by sea so that the buyer can make insurance arrangements. [Section 39(3)]
• To be given a fair chance to inspect the goods and determine whether they are in compliance with the contract. ( Section 41 )
• To file a lawsuit against the seller if they don’t deliver the goods in order to get their money back.
• If the seller wrongfully fails or declines to deliver the goods to the customer, the buyer has the right to sue the seller for damages. ( Section 57 )
• To bring a specific performance claim against the seller.
• To file a claim against the seller for damages for failing to uphold a warranty or a situation that is deemed to be a violation of a warranty ( Section 59 )
• To file a claim against the seller for damages for a potential violation of the contract ( Section 60 )
• When a seller breaches a contract and must refund the customer’s money, the buyer may sue the seller for interest ( Section 61 )

Duties of the buyer under the Sale of Goods Act, 1930

• Accepting the delivery of the goods when the seller is willing to fulfil their end of the bargain. (Section 31)
• To make the required payment in order to obtain the goods.
• To submit a delivery request for the goods. (Section 35)
• Should insist on getting the goods delivered at a fair time. [Section 36(4)]
• Accepting instalment deliveries of the items and paying for them in accordance with the arrangement. [Section 38(2)]
• The buyer should accept the risk of deterioration during transit when the goods are to be delivered somewhere other than the location where they were purchased ( Section 40 )
• To notify the seller if the purchaser declines or rejects the products. ( Section 43 )
• After the seller offers delivery, the buyer must accept delivery of the goods in a timely manner ( Section 44 )
• To fulfil the contract’s requirements by paying the amount at the point at which the buyer acquires ownership of the goods. (Section 55)
• To cover losses for failing to accept the goods. ( Section 56 )

Goods were confirmed to have been received in complete and satisfactory functioning condition in State Bank of Mysore v. Machado Computer Services (2009) . As a result, it was determined that the plaintiff had exercised his entitlement under Section 41 of the Sale of Goods Act and was considered to have accepted the goods upon making the notification of acceptance to the supplier as specified in the delivery challan. According to Section 42 of the Act, both the quality and quantity of the supplied goods were accepted. Further, the description of the goods as to the make or brand is also deemed to have been accepted upon such acceptance following examination of the goods specifically accepted, and no defect could be stated to be in respect of such brand in accordance with the second proviso to Section 16 of the Act. Therefore, the supplier’s obligation under the sales contract was fulfilled. The goods were accepted by the plaintiff. The plaintiff was therefore obligated to pay for the goods after accepting them in accordance with the injunction granted by Sections 31 and 32 of the Act.

Rights of an unpaid seller under the Sale of Goods Act, 1930

According to Section 45 of the Act of 1930, a seller of goods is considered “unpaid” if he has not received the whole of the price, as well as if the buyer has provided him with a bill for the amount due but the bill is not honoured. The phrase “the whole of the price” refers to the total sum agreed upon with respect to the entire contract, and in the event that the contract is severable, the price of the severable component is divided. In each instance, it is an issue of fact as to whether it was given as an unconditional or conditional payment. Partially unpaid sellers are on par with fully unpaid sellers.

The unpaid seller, by the implications of Section 46 , has the following rights:

Right to lien 

The lien of an unpaid seller is a right to retain possession of the goods until tender or payment of the price. The unpaid seller is entitled to a lien only in three situations, as mentioned in Section 47 of the Act. These are as follows:

• There is no stipulation as to credit. The seller is liable to deliver the goods to the buyer when demanded by the buyer but he has no right to have possession of the goods till he pays the price. 
• A sale on credit operates as a waiver of the lien during the currency of the credit,
• If the buyer becomes insolvent before the price is paid, and the seller is in possession of the goods, he is entitled to retain possession even if the goods are sold on credit and the term of credit has not expired.

As was already noted, a lien depends on the actual ownership of goods. When the possession is removed from the seller, the lien disappears along with it, as noted in Section 49 . In the following situations, an unpaid seller of goods loses his lien thereon:

• When he transfers ownership of the goods without reserving it to a carrier or other bailee with the intention of delivering it to the buyer.
• When the buyer lawfully obtains the possession of the goods.
• When the seller expressly or impliedly waives his lien rights. 

Rights of stoppage of goods in transit

This right entails stopping the products while they are in a carrier’s control or lodged at any point during transmission to the buyer, regaining ownership of them, and holding onto them until the price is tendered or paid. To exercise the right, the seller must be unpaid, the buyer must be insolvent, the seller must have parted with possession of the goods, and the buyer must not have acquired them.

Additionally, the delinquent seller may use both of his stoppage-in-transit rights:

• By assuming actual possession of the goods.
• By providing a statement to the seller identifying who is in possession of the goods.

Such instructions may be delivered to the person who actually owns the goods. In the latter scenario, the contract must be reached well in advance to allow the superior to contact his agent or servant in time to deliver the goods to the consumer.

He could be held accountable for the conversion if he offers the goods to the buyer while making an error. The seller must put up with the redelivery expenses.

Suit for breach of contract

Suit for price by the seller against the buyer.

Sub-section (1) of Section 55 deals with a contract where the property in the goods has passed irrespective of delivery. This will involve two types of cases:

• Suit for the price of goods sold and delivered. 
• Suit for the price of goods bargained and sold. 

The contingent situations contemplated by sub-section (2) are as follows:

• Non-delivery
• Non-appropriation of the goods to the contract
• Property in the goods that are continuing to vest in the seller.

Suit for damages by the seller against the buyer for non-acceptance of the goods 

Section 56 says that where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue him for damages for non-acceptance of the goods. 

The Indian Contract Act of 1872’s provisions Section 73 and Section 74 serve as the foundation for calculating the damages. In accordance with Section 73 of the Indian Contract Act, when a contract is broken, the party who suffers as a result of the breach is entitled to receive compensation for any loss suffered by him as a result, which naturally results from the breach in the ordinary course of events or which the parties knew would likely occur when they entered into the contract.

The methods that were available for resolving the discomfort brought on by the contract’s non-performance must also be taken into consideration when calculating the loss or damage brought on by a breach of contract.

The day on which the contract should have been fulfilled by delivery and acceptance as specified by the agreement, or, in the absence of a time frame, at the moment of non-performance, is the date at which the market price is to be determined.

Suit for damages by the buyer against the seller for non-delivery of the goods 

The buyer may file a lawsuit against the seller for non-delivery damages if the seller willfully neglects or declines to deliver the goods to the buyer under Section 57 . The buyer has all the rights of an owner against individuals who act on the property in a way that violates his rights once it has passed, provided that he is entitled to instant possession. Therefore, if the seller wrongfully resells them, the buyer may bring a lawsuit against both the seller and the second buyer. However, the rights against the latter may be limited by the provisions of sections 30 and 54.

The seller cannot be accused of ignoring or refusing to deliver the goods if the buyer has not made payment for earlier deliveries within 15 days of the date of delivery and the seller withholds delivery. The seller would have the right to demonstrate that it would be impossible for him to fulfil his end of the bargain.

Suit for specific performance by the buyer against the seller

Under Section 58 of the Act, in any suit for breach of contract to deliver specific or ascertained goods, the court may, if it thinks fit, on the application of the plaintiff, by its decree directs that the contract shall be performed specifically, without giving the defendant the option of keeping the goods in exchange for payment of damages. This is subject to the provisions of Chapter II of the Specific Relief Act, of 1877 . The plaintiff may file an application at any time prior to the decree, and the court may grant the decree unconditionally or with such terms and conditions as damages, payment of the purchase price, or other matters as it may deem just. This Section is the only one in this Act that deals with the equitable right to a specific performance. 

Suit by the buyer against the seller for breach of warranty

Section 59 of the Act deals with four remedies for the breach of warranty. These are as follows:

• If the loss caused by the warranty violation is less than the purchase price, the buyer may request a reduction in the price. The rule of a price reduction or extinction is not a set-off and only applies to claims that are cross-subject to the same contract.
• If the loss matches the price, the buyer may refuse to pay it at all.
• The buyer may refuse to pay the price as well as claim the excess if the loss exceeds the cost.
• In each of these scenarios, he has the option of paying the amount or suing the seller for warranty breach damages. The buyer has three options for pursuing his claim: through litigation, set-off, or counterclaim.

A breach of warranty does not give the buyer the right to return the goods, and his only options are those listed in Section 59, which are to hold the seller liable for the breach of the warranty by reducing or eliminating the price or suing the seller for damages as a result. According to the definition of ‘warranty’ provided in Section 12(3), only the buyer has the right to file a claim for damages when the warranty is breached.

This Section outlines the procedures a buyer who, in either scenario, has a claim for damages may use to pursue it. It does not address situations in which a fraudulent misrepresentation may allow the buyer to void the contract or situations in which, according to the contract’s specific terms, the buyer may return the goods in the event of a warranty breach.

Suit for damages by seller or buyer for anticipatory breach of contract 

Section 60 outlines the procedure a buyer who, in either scenario, has a claim for damages may use to pursue it. It does not address situations in which a fraudulent misrepresentation may allow the buyer to void the contract or situations in which, according to the contract’s specific terms, the buyer may return the goods in the event of a warranty breach.

Very frequently, situations may emerge where the promisor declares that he will not carry out his share of the performance when the time for performance approaches, even when the performance is to take place in the future. Not doing an act while it is not yet contractually required is not a breach. For this reason, this Section allows the promisee the choice of treating the contract as cancelled in advance or waiting until the day of performance to treat it as subsisting.

Interest by way of damages and special damages

The right to seek interest, extra damages, or money paid in the absence of consideration is preserved under Section 61 . The Interest Act of 1839 allowed interest to be awarded in the following circumstances at the going rate:

• From the due date specified in the contract, on all debits or certain sums payable at a specific time under a written instrument.
• In other situations, interest is charged beginning on the date the written demand is made.

In the case of M/s M.K.M. Moosa Bhai Amin, Kota v. Rajasthan Textile Mills, Bhawanimandi (1974) , the plaintiff sued for the cost of the delivered products as well as interest on the unpaid cost. The District Judge rejected the interest claim on the grounds that there was no contract to pay interest if the cost of the supplied items was not paid in full. The plaintiff argued that under Section 61(2) of the Sale of Goods Act, 1930, the plaintiff was entitled to a reasonable interest even in the absence of the contract. The supply had been made up until September 18, 1962, and under normal circumstances, the defendant should have paid the cost of the goods within a reasonable amount of time after delivery. However, the payment was over a year late, forcing the plaintiff to file a lawsuit to recover the money. According to a ruling, in these situations, the lower courts ought to have erred on the side of the plaintiff and applied Section 61(2) of the Sale of Goods Act to grant interest on the amount of the purchase price of the goods. The Rajasthan High Court permitted interest at 6% annually, which was regarded as a reasonable rate of interest.

The Supreme Court in the case of Marwar Tent Factory v. Union of India (1989) observed that an award of interest to a seller on an amount of price not paid by the buyer within a reasonable time cannot be denied merely because in the notice served under Section 80 of the Code of Civil Procedure ( CPC), the seller had not claimed interest. The Court held that, on the facts, the seller is entitled to a decree of interest at a rate of 6 percent per annum on the unpaid price from the date of delivery of goods.

The United Nations Convention on Contracts for the International Sale of Goods, 1980

The 11th April 1980 adoption of the United Nations Convention on Contracts for the International Sale of Goods (CISG), commonly known as the Vienna Convention, established a legal text that states in Article 1 that it applies to contracts for the sale of goods between parties whose places of business are in different States (a) when the States are contracting States; or (b) when the principles of private international law require the application of the law of a contracting State. 

India has neither signed nor ratified the Convention on the International Sale of Goods, despite a number of other nations have done so. But when handling cases involving parties from two separate countries, the Indian Courts occasionally refer to the Convention.

The two Indian Acts were created many years ago, and as a result, they do not reflect the situations of the present. The clauses in these two Acts are outdated and irreverent, and they do not address the requirements of contemporary sales and contacts that involve a variety of sophisticated aspects. Therefore, the Convention on International Sale of Commodities should be ratified for the reason that it was just established and would assist India to meet the requirements of contemporary contracts and sales of goods. A more uniform and effective way to conduct international sales of commodities would be made possible by the convention, which would also benefit India. The CISG would be very beneficial in addressing the shortcomings and loopholes in the domestic legal framework. This universal law agreement will address elements like cross-border contracts that are not covered by the domestic Sale of Goods Act. Several clauses in the Convention are very helpful in day-to-day business operations.

The article has covered all the important topics and provisions along with case laws. As stated above, the author would like to conclude by stating that it is high time India updated itself by following global standards. The Sale of Goods Act is pre-independence legislation and is mostly inconsistent with today’s trade regimes. If India upgrades the laws as per the United Nations Convention on Contracts for the International Sale of Goods 1980, it will be easier and better to deal with private international laws as well as if there is a conflict of laws, then also globally used legislation would be better to be used, considering exports and imports. There have been very few cases of the Sale of Goods Act in recent years. One of the reasons may be that the provisions are kind of outdated to tackle the new era problems.

Frequently Asked Question (FAQs)

What are the essential things covered under the sale of goods act, 1930.

It is crucial to comprehend the major terminology used in the Sale of Goods Act in order to fully comprehend the Act. The two parties (the buyer and the seller), the mercantile agent, the goods, the price, and the transfer of general property are among them. The Act further deals with the formation and the formalities of a contract. It also covers the suits for breach of contract of sales by both buyer and seller.

What happens if an agreement to sell or a contract of sale is broken?

In essence, when one party fails to complete the sale, the other may claim damages for breach of contract. In the event of a default by the seller, he is required to reimburse the buyer for any additional, justifiable costs. The opposite party might also try to force the wrongdoer to carry out the agreement’s terms. Getting the sale agreement is generally advised from the perspective of the buyer.

What kind of risk is associated with the sale of goods in India?

The owner of the goods bears the risk of loss or damage to goods, according to the common rule in use in India. Res perit domino , a Latin maxim, means the object is lost to the owner of the property. This theory is applicable when selling movable property. According to Section 26 of the Sale of Goods Act of 1930, ownership of the goods remains with the owner if it has not been done so already. The products, however, are at the risk of the buyer if the property has been transferred to them. If the parties to the contract have not agreed to any other explicit provision referencing this in their contract, then this clause will apply. No matter what, this rule is relevant.

References 

• LexisNexis’s The Sale of Goods Act by Pollock & Mulla – 10th Edition 2012
• https://blog.ipleaders.in/remedies-breach-sale-goods-act/  

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Supreme court (sc) judgements on sale of goods act, 1930.

List of Judgements

Ravikumar dhansukhlal maheta & anr. vs. high court of gujarat & ors..

Judgement Date : may/2024 , Citation : 2024 Latest Caselaw 362 SC

Karikho Kri Vs. Nuney Tayang and Anr.

Judgement Date : april/2024 , Citation : 2024 Latest Caselaw 222 SC

Lucknow Nagar Nigam & Ors. Vs. Kohli Brothers Colour Lab. Pvt. Ltd. & Ors.

Judgement Date : february/2024 , Citation : 2024 Latest Caselaw 112 SC

Coal India Ltd. and Anr. Vs. Competition Commission of India and Anr.

Judgement Date : june/2023 , Citation : 2023 Latest Caselaw 529 SC

Tata Motors Ltd.Vs. The Deputy Commissioner of Commercial Taxes(SPL) & Anr.

Judgement Date : may/2023 , Citation : 2023 Latest Caselaw 490 SC

D. N. Singh v Commissioner Of Income Tax & Anr.

Judgement Date : may/2023 , Citation : 2023 Latest Caselaw 484 SC

The Commissioner of Service Tax Delhi Vs. Quick Heal Technologies Ltd.

Judgement Date : august/2022 , Citation : 2022 Latest Caselaw 615 SC

Judgement Date : august/2022 , Citation : 2022 Latest Caselaw 614 SC

Competition Commission of India Vs. State of Mizoram

Judgement Date : january/2022 , Citation : 2022 Latest Caselaw 67 SC

State of Uttar Pradesh through Secretary (Excise) Vs. M/s. Mcdowell and Company Ltd.

Judgement Date : january/2022 , Citation : 2022 Latest Caselaw 16 SC

Forum for People's Collective Efforts (FPCE) Vs. State of West Bengal

Judgement Date : april/2021 , Citation : 2021 Latest Caselaw 234 SC

M/s. Vellanki frame works Vs. The Commercial Tax Officer, Visakhapatnam

Judgement Date : january/2021 , Citation : 2021 Latest Caselaw 21 SC

SURENDRA KUMAR BHILAWE vs. NEW INDIA ASSURANCE COMPANY LTD.

Judgement Date : june/2020 , Citation : 2020 Latest Caselaw 405 SC

PANDURANG GANPATI CHAUGULE vs. VISHWASRAO PATIL MURGUD SAHAKARI BANK LIMITED

Judgement Date : may/2020 , Citation : 2020 Latest Caselaw 356 SC

COMMERCIAL TAX OFFICER vs. M/S BOMBAY MACHINERY STORE

Judgement Date : april/2020 , Citation : 2020 Latest Caselaw 344 SC

COMMISSIONER OF CENTRAL EXCISE, NAGPUR vs. M/S UNIVERSAL FERRO & ALLIED CHEMICALS LTD.

Judgement Date : march/2020 , Citation : 2020 Latest Caselaw 256 SC

INTERNET AND MOBILE ASSOCIATION OF INDIA vs. RESERVE BANK OF INDIA

Judgement Date : march/2020 , Citation : 2020 Latest Caselaw 238 SC

ASSISTANT ENGINEER (D1) AJMER VIDYUT VITRAN NIGAM LIMITED vs. RAHAMATULLAH KHAN ALIAS RAHAMJULLA

Judgement Date : february/2020 , Citation : 2020 Latest Caselaw 177 SC

M/S SHANTI CONDUCTORS (P) LTD vs. ASSAM STATE ELECTRICITY BOARD

Judgement Date : december/2019 , Citation : 2019 Latest Caselaw 1288 SC

GREAT EASTERN SHIPPING CO. LTD. vs. STATE OF KARNATAKA

Judgement Date : december/2019 , Citation : 2019 Latest Caselaw 1193 SC

STATE OF WEST BENGAL vs. CALCUTTA CLUB LIMITED

Judgement Date : october/2019 , Citation : 2019 Latest Caselaw 943 SC

NEVADA PROPERTIES PVT. LTD vs. THE STATE OF MAHARASHTRA

Judgement Date : september/2019 , Citation : 2019 Latest Caselaw 865 SC

M/s. D.J. Malpani Vs. Commissioner of Central Excise, Nashik

Judgement Date : april/2019 , Citation : 2019 Latest Caselaw 357 SC

Uttar Haryana Bijli Vitran Nigam Ltd. (UHBVNL) Vs. Adani Power Ltd.

Judgement Date : february/2019 , Citation : 2019 Latest Caselaw 170 SC

M/s. Tata Motors Ltd. Vs. The Deputy Commissioner of Commercial Taxes (SPL)

Judgement Date : february/2019 , Citation : 2019 Latest Caselaw 88 SC

State of Karnataka and ANR Vs M/S Durga Projects Inc [March 06, 2018]

Judgement Date : march/2018 , Citation : 2018 Latest Caselaw 156 SC

Commissioner of Customs Central Excise and Service Tax, Guntur Vs. M/S. The Andhra Sugars Ltd. [FEBRUARY 05, 2018]

Judgement Date : february/2018 , Citation : 2018 Latest Caselaw 67 SC

Commissioner of Central Excise Service Tax Vs. Ultra Tech Cement Ltd. [FEBRUARY 01, 2018]

Judgement Date : february/2018 , Citation : 2018 Latest Caselaw 58 SC

Securities and Exchange Board of India Vs. M/s. Opee Stock-Link Ltd. & ANR [JULY 11, 2016]

Judgement Date : july/2016 , Citation : 2016 Latest Caselaw 478 SC

State of West Bengal and Others Vs. Calcutta Club Limited [May 04, 2016]

Judgement Date : may/2016 , Citation : 2016 Latest Caselaw 343 SC

Commissioner of Commercial Taxes, Thiruvananthapuram, Kerala Vs. M/s K.T.C. Automobiles [January 29, 2016]

Judgement Date : january/2016 , Citation : 2016 Latest Caselaw 98 SC

M/S Gujarat Ambuja Exports Ltd & ANR. Vs. State of Uttarakhand & Ors. [December 9, 2015]

Judgement Date : december/2015 , Citation : 2015 Latest Caselaw 804 SC

Commissioner, Central Excise & Customs, Kerala Vs. M/s Larsen & Toubro Ltd. [August 20, 2015]

Judgement Date : august/2015 , Citation : 2015 Latest Caselaw 540 SC

State of Karnataka Etc. Vs. M/S Pro Lab & Ors. Etc. [JANUARY 30, 2015]

Judgement Date : january/2015 , Citation : 2015 Latest Caselaw 70 SC

M/S. Kone Elevator India Pvt. Ltd. Vs. State of Tamil Nadu and Ors. [May 06, 2014]

Judgement Date : may/2014 , Citation : 2014 Latest Caselaw 334 SC

Agricultural Produce Market Committee Vs. Biotor Industries Ltd. & ANR. [November 29, 2013]

Judgement Date : november/2013 , Citation : 2013 Latest Caselaw 840 SC

State of U.P & Ors. Vs. Jaiprakash Associates Ltd. [OCTOBER 18, 2013]

Judgement Date : october/2013 , Citation : 2013 Latest Caselaw 736 SC

M/S. Larsen & Toubro Limited & ANR. Vs. State of Karnataka & ANR. [September 26, 2013]

Judgement Date : september/2013 , Citation : 2013 Latest Caselaw 688 SC

M/s Purbanchal Cables & Conductors Pvt. Ltd. Vs. Assam State Electricity Board & Another [July 10, 2012]

Judgement Date : july/2012 , Citation : 2012 Latest Caselaw 354 SC

Phulchand Exports Ltd. Vs. OOO Patriot

Judgement Date : october/2011 , Citation : 2011 Latest Caselaw 761 SC

Dharmarth Trust J&K Jammu & Ors. Vs. Dinesh Chander Nanda [2010] INSC 714 (8 September 2010)

Judgement Date : september/2010 , Citation : 2010 Latest Caselaw 647 SC

Union of India & Ors. Vs. M/S Martin Lottery Agencies Ltd. [2009] INSC 906 (5 May 2009)

Judgement Date : may/2009 , Citation : 2009 Latest Caselaw 452 SC

Accounts Officer, Jharkhand State Electricity Board and Anr Vs. Anwar Ali [2007] Insc 1025 (9 October 2007)

Judgement Date : october/2007 , Citation : 2007 Latest Caselaw 812 SC

Numaligarh Refinery Ltd Vs. Daelim Industrial Company Ltd [2007] Insc 899 (6 September 2007)

Judgement Date : september/2007 , Citation : 2007 Latest Caselaw 686 SC

State of Rajasthan & Anr Vs. Rajasthan Chemist Association [2006] Insc 445 (24 July 2006)

Judgement Date : july/2006 , Citation : 2006 Latest Caselaw 445 SC

Dhampur Sugar Mills Ltd. Vs. Commissioner of Trade Tax, U.P [2006] Insc 311 (12 May 2006)

Judgement Date : may/2006 , Citation : 2006 Latest Caselaw 311 SC

M/S. Sunrise Associates Vs. Govt. of Nct of Delhi & Ors [2006] Insc 255 (28 April 2006)

Judgement Date : april/2006 , Citation : 2006 Latest Caselaw 255 SC

Smt. Claude-Lila Parulekar Vs. M/S. Sakal Papers Pvt. Ltd. & Ors [2005] INSC 195 (18 March 2005)

Judgement Date : march/2005 , Citation : 2005 Latest Caselaw 195 SC

Smt. Claude-Lila Parulekar Vs. M/S. Sakal Papers Pvt. Ltd. & Ors [2005] INSC 192 (18 March 2005)

Judgement Date : march/2005 , Citation : 2005 Latest Caselaw 192 SC

Tata Consultancy Services Vs. State of Andhra Pradesh [2004] Insc 686 (5 November 2004)

Judgement Date : november/2004 , Citation : 2004 Latest Caselaw 645 SC

Secretary, Thirumurugan Co-Operative Vs. M. Lalitha & Ors [2003] INSC 627 (11 December 2003)

Judgement Date : december/2003 , Citation : 2003 Latest Caselaw 619 SC

M.S. Madhusoodhanan & ANR Vs. Kerala Kaumudi Pvt. Ltd. & Ors [2003] INSC 346 (1 August 2003)

Judgement Date : august/2003 , Citation : 2003 Latest Caselaw 342 SC

Government of Maharashtra & Ors Vs. M/S Deokar's Distillery [2003] Insc 158 (10 March 2003)

Judgement Date : march/2003 , Citation : 2003 Latest Caselaw 157 SC

R.D. Goyal & ANR Vs. Reliance Industries Ltd [2002] INSC477 (20 November 2002)

Judgement Date : november/2002 , Citation : 2002 Latest Caselaw 478 SC

M/S Haridas Exports Vs. All India Float Glass Mfrs. Assn. & Ors [2002] INSC 298 (22 July 2002)

Judgement Date : july/2002 , Citation : 2002 Latest Caselaw 298 SC

M/S Haridas Exports Vs. All India Float Glass Mfrs. Assn. & Ors [2002] INSC 296 (22 July 2002)

Judgement Date : july/2002 , Citation : 2002 Latest Caselaw 296 SC

Vasantha Viswanathan & Ors Vs. V.K. Elayalwar & Ors [2001] INSC 419 (24 August 2001)

Judgement Date : august/2001 , Citation : 2001 Latest Caselaw 419 SC

Regional Provident Fund Commissioner Vs. Shiv Kumar Joshi [1999] INSC 424 (14 December 1999)

Judgement Date : december/1999 , Citation : 1999 Latest Caselaw 424 SC

Ferro Alloys Corporation Ltd. Vs. Union of India & Ors [1998] INSC 607 (14 December 1998)

Judgement Date : december/1998 , Citation : 1998 Latest Caselaw 607 SC

Ferro Alloys Corporation Ltd. Vs. Union of India & Ors [1998] INSC 605 (14 December 1998)

Judgement Date : december/1998 , Citation : 1998 Latest Caselaw 605 SC

Morgan Stanley Mutual Fund Vs. Kartick Das [1994] INSC 341 (20 May 1994)

Judgement Date : may/1994 , Citation : 1994 Latest Caselaw 336 SC

Lucknow Development Authority Vs. M.K. Gupta [1993] INSC 483 (5 November 1993)

Judgement Date : november/1993 , Citation : 1993 Latest Caselaw 476 SC

Marwar Tent Factory Vs. Union of India & Ors [1989] INSC 337 (9 November 1989)

Judgement Date : november/1989 , Citation : 1989 Latest Caselaw 337 SC

Builders Association of India & Ors Vs. Union of India & Ors [1989] INSC 114 (31 March 1989)

Judgement Date : march/1989 , Citation : 1989 Latest Caselaw 114 SC

Coffee Board, Karnataka, Bangalore Vs. Commissioner of Commercial Taxes [1988] INSC 164 (11 May 1988)

Judgement Date : may/1988 , Citation : 1988 Latest Caselaw 163 SC

Food Corporation of India Vs. Surendra, Devendra & Mohendra Transport Co [1987] INSC 370 (10 December 1987)

Judgement Date : december/1987 , Citation : 1987 Latest Caselaw 369 SC

Executive Engineer Irrigation Galimala & Ors A Vs. Abaaduta Jena [1987] INSC 264 (22 September 1987)

Judgement Date : september/1987 , Citation : 1987 Latest Caselaw 263 SC

H. Anraj Vs. Government of Tamilnadu [1985] INSC 221 (4 October 1985)

Judgement Date : october/1985 , Citation : 1985 Latest Caselaw 221 SC

State of Orissa & Other Vs. The Tltaghur Paper Mills Company Ltd. & ANR [1985] INSC 43 (1 March 1985)

Judgement Date : march/1985 , Citation : 1985 Latest Caselaw 43 SC

Khazan Chand Vs. State of Jammu And Kashmir & Ors [1984] INSC28 (13 February 1984)

Judgement Date : february/1984 , Citation : 1984 Latest Caselaw 28 SC

State of Karnataka Vs. Krishna Bhima Walvakar & ANR [1981] INSC 110 (7 May 1981)

Judgement Date : may/1981 , Citation : 1981 Latest Caselaw 110 SC

Consolidated Coffee & ANR Vs. Coffee Board, Bangalore [1980] INSC 82 (15 April 1980)

Judgement Date : april/1980 , Citation : 1980 Latest Caselaw 82 SC

Vishnu Agencies (Pvt.) Ltd. Vs. Commercial Tax Officer & Ors [1977] INSC 240 (16 December 1977)

Judgement Date : december/1977 , Citation : 1977 Latest Caselaw 240 SC

Juggilal Kamlapat Vs. Pratapmal Rameshwar [1977] INSC 220 (24 November 1977)

Judgement Date : november/1977 , Citation : 1977 Latest Caselaw 220 SC

Union of India Vs. Central India Machinery Manufacturing Co. Ltd. & Ors [1977] INSC 105 (6 April 1977)

Judgement Date : april/1977 , Citation : 1977 Latest Caselaw 105 SC

State of Maharashtra Vs. The Central Provinces Manganese Ore Co. Ltd. [1976] INSC 270 (29 October 1976)

Judgement Date : october/1976 , Citation : 1976 Latest Caselaw 270 SC

Collector of Customs & Ors Vs. Pednkar and Company (Private) Limited & ANR [1976] INSC 92 (31 March 1976)

Judgement Date : march/1976 , Citation : 1976 Latest Caselaw 92 SC

Balabhagas Hulaschand Vs. State of Orissa [1975] INSC 304 (9 December 1975)

Judgement Date : december/1975 , Citation : 1975 Latest Caselaw 302 SC

Davenport & Co. Pvt. Ltd. Vs. Commissioner of Income-Tax, West Bengal [1975] INSC 150 (31 July 1975)

Judgement Date : july/1975 , Citation : 1975 Latest Caselaw 148 SC

M/S. Chowringhee Sales Bureau (P) Ltd. Vs. C.I.T., West Bengal [1972] INSC 252 (10 October 1972)

Judgement Date : october/1972 , Citation : 1972 Latest Caselaw 252 SC

Mahabir Commercial Co. Ltd Vs. C.I.T. West Bengal, Calcutta [1972] INSC 210 (8 September 1972)

Judgement Date : september/1972 , Citation : 1972 Latest Caselaw 210 SC

State of Madhya Pradesh Vs. M/S. Saith & Skelton (P) Ltd. [1972] INSC 32 (28 January 1972)

Judgement Date : january/1972 , Citation : 1972 Latest Caselaw 32 SC

Chhitter Mal Narain Das Vs. Commissioner of Sales Tax [1970] INSC 145 (21 July 1970)

Judgement Date : july/1970 , Citation : 1970 Latest Caselaw 145 SC

State of Maharashtra & ANR Vs. Champalal Kishanlal Mohta [1970] INSC 67 (17 March 1970)

Judgement Date : march/1970 , Citation : 1970 Latest Caselaw 67 SC

Joint Commercial Tax Officer, Harbour Div. Ii Madras Vs. Young Men's Indian Association Madras & Ors [1970] INSC 20 (12 February 1970)

Judgement Date : february/1970 , Citation : 1970 Latest Caselaw 20 SC

Ram Narain Mahto Vs. State of Madhya Pradesh [1969] INSC 244 (16 September 1969)

Judgement Date : september/1969 , Citation : 1969 Latest Caselaw 244 SC

Kurapati Venkatasatyanarayana & Ors Vs. The State of Andhra Pradesh [1969] INSC 165 (1 August 1969)

Judgement Date : august/1969 , Citation : 1969 Latest Caselaw 165 SC

Tika Ram & Sons Ltd. Vs. The Commissioner of Sales Tax U.P., Lucknow [1968] INSC 75 (22 March 1968)

Judgement Date : march/1968 , Citation : 1968 Latest Caselaw 75 SC

Tirumala Venkateswara Timber Andbamboo Firm Vs. Commercial Tax Officer, Rajahmundry [1967] INSC 280 (28 November 1967)

Judgement Date : november/1967 , Citation : 1967 Latest Caselaw 280 SC

Deputy Commercial Tax Officer, Saidapet & ANR Vs. Enfield India Ltd., Co-Operative Canteen Ltd. [1967] INSC 270 (23 November 1967)

Judgement Date : november/1967 , Citation : 1967 Latest Caselaw 270 SC

P.S.N.S. Ambalavana Chettiar And Co. Ltd & ANR Vs. Express Newspapers Ltd., Bombay [1967] INSC 257 (10 November 1967)

Judgement Date : november/1967 , Citation : 1967 Latest Caselaw 257 SC

Commissioner of Income Tax, Hyderabad Vs. M/S. Motor And General Stores (P.) Ltd. [1967] INSC 134 (2 May 1967)

Judgement Date : may/1967 , Citation : 1967 Latest Caselaw 134 SC

Devi Das Gopal Krishnan & Ors Vs. State of Punjab & Ors [1967] INSC 102 (10 April 1967)

Judgement Date : april/1967 , Citation : 1967 Latest Caselaw 102 SC

Mohanlal Hargovinddas Vs. State of Madhya Pradesh & Ors [1966] INSC 250 (15 November 1966)

Judgement Date : november/1966 , Citation : 1966 Latest Caselaw 253 SC

Singareni Collieries Co. Ltd. Vs. State of Andhra Pradesh & Ors [1965] INSC 212 (12 October 1965)

Judgement Date : october/1965 , Citation : 1965 Latest Caselaw 212 SC

Badri Prasad Vs. State of Madhya Pradesh & ANR [1965] INSC 70 (16 March 1965)

Judgement Date : march/1965 , Citation : 1965 Latest Caselaw 70 SC

The Morvi Mercantile Bank Ltd. & ANR Vs. Union of India [1965] INSC 55 (3 March 1965)

Judgement Date : march/1965 , Citation : 1965 Latest Caselaw 55 SC

Government of Andhra Pradesh Vs. Guntur Tobaccos Ltd. [1964] INSC 264 (18 November 1964)

Judgement Date : november/1964 , Citation : 1964 Latest Caselaw 264 SC

M/S. Ouchterloney Valley Estates Ltd. Vs. State Kerala [1964] INSC 232 (23 October 1964)

Judgement Date : october/1964 , Citation : 1964 Latest Caselaw 232 SC

Shree Bajrang Jute Mills Ltd. Vs. State of Andhra Pradesh [1964] INSC 29 (6 February 1964)

Judgement Date : february/1964 , Citation : 1964 Latest Caselaw 29 SC

Thansingh Nathmal & Ors Vs. A. Mazid, Superintendent of Taxes [1964] INSC 22 (3 February 1964)

Judgement Date : february/1964 , Citation : 1964 Latest Caselaw 22 SC

Patel Gordhandas Hargovindas Vs. Municipal Commissioner, Ahmedabad [1963] INSC 76 (28 March 1963)

Judgement Date : march/1963 , Citation : 1963 Latest Caselaw 76 SC

Bhopal Sugar Industries Ltd. Madhya Pradesh & ANR Vs. D.B. Dube, Sales Tax Officer, Bhopal Region [1962]380 (21 December 1962)

Judgement Date : december/1962 , Citation : 1962 Latest Caselaw 380 SC

M/S New India Sugar Mills Ltd. Vs. Commissioner of Sales Tax, Bihar [1962] INSC 334 (26 November 1962)

Judgement Date : november/1962 , Citation : 1962 Latest Caselaw 334 SC

M/S. William Jacks & Co. Ltd. Vs. The State of Bihar [1962] INSC 328 (21 November 1962)

Judgement Date : november/1962 , Citation : 1962 Latest Caselaw 328 SC

M/S. George Oakes (P.) Ltd. Vs. State of Madras [1961] INSC 199 (28 April 1961)

Judgement Date : april/1961 , Citation : 1961 Latest Caselaw 199 SC

Carl Still G. M. B. H. & ANR Vs. The State of Bihar & Ors [1961] INSC 168 (19 April 1961)

Judgement Date : april/1961 , Citation : 1961 Latest Caselaw 168 SC

Jute And Gunny Brokers Ltd.& ANR Vs. The Union of India & Ors [1961] INSC 55 (17 February 1961)

Judgement Date : february/1961 , Citation : 1961 Latest Caselaw 55 SC

The Commissioner of Income-Tax, Madhya Pradesh & Bhopa Vs. Bhopal Textiles Ltd., Bhopal [1960] INSC 170 (17 October 1960)

Judgement Date : october/1960 , Citation : 1960 Latest Caselaw 170 SC

Commissioner of Income-Tax, Delhi Vs. Messrs. P. M. Rathod & Co [1959] INSC 94 (20 may 1959)

Judgement Date : may/1959 , Citation : 1959 Latest Caselaw 94 SC

The Commissioner of Sales-Tax,Eastern Division, Nagpur Vs. Husenali Adamji And Co [1959] INSC 44 (21 April 1959)

Judgement Date : april/1959 , Citation : 1959 Latest Caselaw 44 SC

Firm of M/S. Peare Lal Hari Singh Vs. The State of Punjab & ANR [1958] INSC 39 (7 April 1958)

Judgement Date : april/1958 , Citation : 1958 Latest Caselaw 39 SC

Pandit Banarsi Das Bhanot Vs. The State of Madhya Pradesh & Ors [1958] INSC 36 (3 April 1958)

Judgement Date : april/1958 , Citation : 1958 Latest Caselaw 36 SC

The State of Madras Vs. Gannon Dunkerley & Co.,(Madras) Ltd. [1958] INSC 35 (1 April 1958)

Judgement Date : april/1958 , Citation : 1958 Latest Caselaw 35 SC

The Tata Iron & Steel Co. Ltd. Vs. The State of Bihar [1958] INSC 13 (19 February 1958)

Judgement Date : february/1958 , Citation : 1958 Latest Caselaw 13 SC

The Bengal Immunity Company Limited Vs. The State of Bihar & Ors [1954] INSC 120 (4 December 1954)

Judgement Date : december/1954 , Citation : 1954 Latest Caselaw 120 SC

Duni Chand Rataria Vs. Bhuwalka Brothers Ltd. [1954] INSC 117 (3 December 1954)

Judgement Date : december/1954 , Citation : 1954 Latest Caselaw 117 SC

Himmatlal Harilal Mehtav Vs. The State of Madhya Pradesh & Ors [1954] INSC 26 (16 March 1954)

Judgement Date : march/1954 , Citation : 1954 Latest Caselaw 26 SC

Poppatlal Shah Vs. The State of Madras [1953] INSC 27 (30 March 1953)

Judgement Date : march/1953 , Citation : 1953 Latest Caselaw 27 SC

State Bare Acts

Law of Sale of Goods - Notes, Case Laws And Study Material

Legal bites provides comprehensive law of sale of goods study materials for students, lawyers, and corporations to deepen their understanding of the subject..

Legal Bites provides comprehensive Law of Sale of Goods study materials for students, lawyers, and corporations to deepen their understanding of the subject. The series covers important topics and case studies and offers valuable insights for those seeking to improve their knowledge. Legal Bites is committed to providing quality and insightful study materials.

The Sale of Goods Act, 1930 is the primary legislation in India that deals with the sale of goods. It is based on the principles of contract law and regulates the rights and obligations of buyers and sellers in a transaction involving the transfer of ownership of goods.

Law of Sale of Goods - Notes, Case Laws And Study Material (Topics to be updated Soon)

Module i: introduction to the sales of goods act.

• Historical Background and Development of the Act
• Scope and Applicability of the Act
• Distinction between Sale and Agreement to Sell

Module II: Conditions and Warranties

• Concept of Conditions and Warranties
• Types of Conditions and Warranties
• Distinction between Conditions and Warranties
• Effects of Breach of Conditions and Warranties
• Remedies available to the parties in case of breach

Module III: Transfer of Ownership and Delivery

• Rules regarding the Transfer of Ownership in a Sale Transaction
• Transfer of Property in Specific or Future Goods
• Modes of Delivery and their Legal Consequences
• Risk and Title to Goods
• Unascertained Goods and Appropriation

Module IV: Performance of the Contract

• Rights and Duties of the Seller and the Buyer
• Obligations regarding Delivery and Payment
• Acceptance or Rejection of Goods

Module VI: Unpaid Seller and Remedies

• Definition and Rights of an unpaid seller
• Lien and Right of Stoppage in Transit
• Right of resale and Damages for non-acceptance
• Suit for price and Damages for non-payment
• Rights and remedies against the goods

Module VII: Other Provisions

• Auction Sales and their Legal Implications
• Rights and Liabilities of the Seller and the Buyer
• Performance of the Contract by Third Parties
• Disputes Resolution and Legal Remedies Available

Other articles

[1] 7 Important Legal Precedents: Law of Sale of Goods

Law of Sale of Goods Mains Question Answer Series: Important Questions for Judiciary & University Exams

Law of Sale of Goods Mains Question Answer Series Part I

Law of Sale of Goods Mains Question Answer Series Part II

Law of Sale of Goods Mains Question Answer Series Part III

Law of Sale of Goods Mains Question Answer Series Part IV

Law of Sale of Goods Mains Question Answer Series Part V

Law of Sale of Goods Mains Question Answer Series Part VI

Your valuable feedback in the form of comments or any desired inputs is encouraged and always welcome.

Every contribution toward a goal is valuable, regardless of how small it may be.

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Legal Bites Study Materials correspond to what is taught in law schools and what is tested in competitive exams. It pledges to offer a competitive advantage, prepare for tests, and save a lot of money.

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• National characteristics 1
• National characteristics 19
• National characteristics, American 1
• National characteristics, Philippine 10
• National security 5
• National security 4
• National socialism 4
• National socialism and architecture 1
• Nationalism 11
• Nationalism 55
• Nationalism--Study and teaching 23
• Nationalism in art 1
• Native language 3
• Natural gas 1
• Natural gas pipelines 1
• Natural history 4
• Natural history 15
• Natural history--Philosophy 2
• Natural language processing (Computer science) 3
• Natural language processing (Computer science) 29
• Natural resources 4
• Natural resources 1
• Natural resources--Social aspects 2
• Natural selection 1
• Natural theology 1
• Natural theology 5
• Naturalism 5
• Naturalism in literature 1
• Naturalistic fallacy 2
• Nature--Effect of human beings on 3
• Nature--Religious aspects--Christianity--History of doctrines 1
• Nature--Social aspects 4
• Nature conservation 4
• Naval art and science 1
• Dar-ma-rin-chen, Rgyal-tshab-rje, 1364-1432 1
• Naval history 9
• Naxalite movement 1
• Neck--Muscles 1
• Needs assessment 1
• Negative theology 1
• Negative theology 4
• Negotiation 3
• Neo-Confucianism 2
• Neoclassicism (Architecture) 1
• Neolithic period 4
• Neolithic period 12
• Neon lighting in art 1
• Neoplatonism 1
• Neoplatonism--Influence 1
• Nervous system--Surgery 2
• Neural networks (Computer science) 1
• Neurochemistry 1
• Neurosciences 7
• Neurosciences--Philosophy 12
• Neutrality 1
• New Age movement 8
• New Age music 1
• New Deal, 1933-1939 1
• New Zealand literature 3
• New Zealand literature 1
• New wave films 2
• Newspapers 5
• Newtonian cosmology 1
• Nihilism (Philosophy) 1
• Nineteen hundreds (Decade) 1
• Nineteen sixties 3
• Nineteen tens 1
• Nineteen thirties 1
• Nineteen twenties 4
• Nineteenth century 30
• Nineteenth century 298
• Nitrification 1
• Nitrification--Environmental aspects 1
• Nitrogen oxides 1
• Noah's ark 1
• Nobel Prizes 3
• Noctilucent clouds 1
• Nocturnal animals 1
• Noise control 1
• Noise pollution 1
• Non-tariff trade barriers 1
• Nonprofit organizations 3
• Nonviolence 2
• Nonviolence--Philosophy 1
• Nonviolence--Religious aspects--Comparative studies 1
• Normativity (Ethics) 8
• North Africans 1
• Norwegian language 1
• Norwegian literature 4
• Norwegians--Social life and customs 1
• Nostalgia 3
• Novelists, French 1
• Novelists, French--Psychology 1
• Novelists, Urdu 3
• Nubian languages 4
• Nuclear crisis stability 1
• Nuclear disarmament 1
• Nuclear energy 1
• Nuclear nonproliferation 2
• Nuclear warfare 3
• Nuclear warfare--Moral and ethical aspects 1
• Nuclear weapons 3
• Number theory 1
• Numbers, Natural 2
• Numbers, Prime 4
• Numismatics 15
• Numismatics, Greek 1
• Nursing homes 1
• Nutrition 1
• Object-oriented methods (Computer science) 13
• Oboe music 2
• Observation (Educational method) 1
• Obstetrics 3
• Occitan language 1
• Occitan literature 3
• Occitan literature 5
• Occultism 3
• Occultism 18
• Occupational training 1
• Ocean liners 1
• Ocean travel 2
• Ocean travel in literature 1
• Odor control 1
• Offset printing 1
• Oil palm--Breeding 1
• Oils and fats 1
• Ojibwa Indians 1
• Old Norse language 1
• Old Norse language--Metrics and rhythmics 1
• Old Norse literature 1
• Old Saxon language 1
• Old age--Sex differences 1
• Old age in literature 1
• Old growth forests 1
• Online bibliographic searching 1
• Online library catalogs 3
• Online library catalogs--Remote access 1
• Onomasiology 3
• Ontology 29
• Ontology in literature 1
• Open source software 2
• Open theism 1
• Opera--Stage-setting and scenery 4
• Opium trade 3
• Oppression (Psychology) 1
• Options (Finance) 18
• Options (Finance)--Valuation 2
• Options (Finance)--Valuation--Mathematical models 2
• Oral history 9
• Oral history 70
• Oral history--Archival resources 2
• Orchestra 14
• Orchestral music 1
• Orchestral music--Parts 1
• Order--Religious aspects--Christianity 1
• Order (Philosophy)--Moral and ethical aspects 1
• Organ music 3
• Organic farming 1
• Organizational change 3
• Organizational change 4
• Organizational sociology 11
• Organized crime 1
• Orientalism 4
• Orientalism 18
• Orientalism in literature 2
• Orphism (Art) 1
• Orthodox Judaism 2
• Osiris (Egyptian deity) 1
• Osteopathic medicine 1
• Other (Philosophy) 2
• Other (Philosophy) 11
• Ouija boards 1
• Outdoor recreation 1
• Outsider art 2
• Outsider art 4
• Oxidation 1
• Oxidation, Physiological 1
• Ozonization 3
• P document (Biblical criticism) 1
• P document (Biblical criticism) 9
• Pacific Island literature 1
• Pahlavi language 1
• Pain in animals 1
• Paint materials--Analysis 1
• Painting 22
• Painting 40
• Painting, American 1
• Painting, French 2
• Painting, Gothic 1
• Painting, Renaissance 1
• Painting, Renaissance--Italian influences 1
• Pakistani literature 3
• Pakistani literature--Social aspects 2
• Pakistani literature (English) 1
• Pakistani poetry 3
• Pakistanis 2
• Paleo-Indians 1
• Paleography 4
• Paleography 25
• Paleography, Latin 3
• Paleontology 1
• Paleopathology 1
• Palestinian Arabs 2
• Palestinian Arabs--Civil rights 1
• Palestinian Arabs--Social conditions 1
• Palm-leaf manuscripts 2
• Panjabi language 1
• Panjabi literature 2
• Panjabis (South Asian people)--Social life and customs 1
• Panpsychism 6
• Paper industry 1
• Paper industry--Data processing 1
• Handmade paper 2
• Schreiner, Olive, 1855-1920 2
• Parallel processing (Electronic computers) 1
• Parallel programming (Computer science) 1
• Parapsychology 6
• Parasitology 1
• Family leave 1
• Parenting 1
• Parks--Public use 1
• Parthians 1
• Participant observation 4
• Participation 7
• Particle counting (Water treatment plants) 1
• Partnership 1
• Passion-plays 1
• Passover--Customs and practices 1
• Immermann, Karl Leberecht, 1796-1840 1
• Pastoral care 1
• Pastoral counseling--Study and teaching 10
• Pastoral systems 2
• Pastoral theology 1
• Nathan, Isaac, 1792-1864 1
• Pastoral theology--Study and teaching 10
• Patriarchs and patriarchate 1
• Patriarchy 1
• Patriotic music 1
• Patriotism 2
• Patriotism--Public opinion 1
• Patron and client 3
• Patronage, Political 1
• Peace--Research 1
• Peace--Social aspects 17
• Peace--Study and teaching 1
• Peace (Philosophy) 1
• Peace movements 4
• Peace-building 3
• Peace-building 16
• Peasant uprisings 4
• Peasant uprisings--Historiography 1
• Peasant uprisings in literature 1
• Pediatrics 2
• Peer review 3
• Penelope (Greek mythological character) 1
• Pentecostalism 1
• People with disabilities--Legal status, laws, etc. 5
• Perception 22
• Perestroĭka 1
• Performance 1
• Performance 2
• Performance art 11
• Performance art 29
• Performance art--Study and teaching 62
• Performance practice (Music) 8
• Performative (Philosophy) 5
• Performing arts 7
• Performing arts 12
• Performing arts festivals 1
• Performing arts medicine 1
• Periodical editors 7
• Periodicals 3
• Periodicals 17
• Periodicals--Publishing 2
• Periodicals--Study and teaching 12
• Persian language 11
• Persian literature 11
• Persian literature 45
• Persian poetry 6
• Persistence 1
• Personalism 1
• Personality 3
• Personality development 2
• Personnel management 4
• Perspective 1
• Perspective--Study and teaching 1
• Peruvian fiction 1
• Peruvian literature 3
• Pesticides 1
• Pesticides--Toxicology 1
• Petitions 1
• Petrarchism 1
• Petrine office 1
• Petroglyphs 1
• Petroleum 3
• Petroleum--Prospecting 1
• Petroleum industry and trade 1
• Pharmacology 1
• Phenology 1
• Phenomenological psychology 1
• Phenomenological sociology 4
• Phenomenological theory (Physics) 1
• Phenomenology 9
• Phenomenology 39
• Philippine literature 6
• Philistines 2
• Philology 20
• Philology 50
• Philosophers, Ancient 1
• Philosophical anthropology 8
• Philosophical anthropology 1
• Philosophical theology 2
• Philosophical theology 26
• Philosophical theology--History of doctrines 1
• Philosophy 94
• Philosophy 474
• Philosophy and cognitive science 2
• Philosophy and religion 1
• Philosophy and religion--History of doctrines 1
• Philosophy of mind 12
• Philosophy of mind 25
• Philosophy of nature 2
• Philosophy of nature 8
• Philosophy, Ancient 6
• Philosophy, Ancient 31
• Philosophy, Asian 1
• Philosophy, Chinese 1
• Philosophy, Comparative 3
• Philosophy, French 10
• Philosophy, French--Influence 2
• Philosophy, German 3
• Philosophy, German 6
• Philosophy, Indic 1
• Philosophy, Italian 4
• Philosophy, Italian 3
• Philosophy, Latin American 4
• Philosophy, Marxist 2
• Philosophy, Medieval 15
• Philosophy, Modern 1
• Philosophy, Modern 40
• Philosophy, Philippine 11
• Philosophy, Renaissance 2
• Philosophy, Renaissance 13
• Philosophy, Spanish 14
• Philosophy, Swedish 1
• Phoenician language 1
• Phoenicians 7
• Phonetics 1
• Phonetics 12
• Phosphates 1
• Phosphorus 1
• Phosphorus--Environmental aspects 1
• Photograph collections 2
• Photographers 7
• Photographs--Archives 4
• Photography 39
• Photography 86
• Photography--Printing processes--Albumen 1
• Photography in ethnology 3
• Photography, Artistic 14
• Photography, Stereoscopic 3
• Photojournalism 1
• Phraseology 2
• Phylogeny 3
• Physical anthropology 1
• Physical anthropology 9
• Physical education and training 4
• Physician and patient 1
• Physicians 4
• Physics--Philosophy 3
• Physics--Social aspects 1
• Piano music 2
• Piano music, Arranged 1
• Picaresque literature 1
• Picture-writing 3
• Pidgin languages 1
• Pigments--Analysis 1
• Pilgrims and pilgrimages 17
• Pipelines--Design and construction 1
• Piracy (Copyright) 1
• Place (Philosophy) 29
• Plagiarism 3
• Plague--Social aspects 1
• Plant breeding 1
• Plant nutrients 1
• Plaster casts 1
• Plastic foams 1
• Plastic scrap 1
• Plasticity 1
• Platonic love 1
• Platonists 1
• Player piano 1
• Pleistocene-Holocene boundary 1
• Plotting charts--Computer programs 1
• Poetics 132
• Poetry--Authorship 5
• Poetry--Black authors 1
• Poetry--Translating 34
• Poetry, Ancient 10
• Poetry, Medieval 1
• Poetry, Medieval 16
• Poetry, Modern 1
• Poetry, Modern 7
• Poets, Filipino 1
• Poets, French--Psychology 1
• Poets, Hindi 1
• Poets, Irish 1
• Poets, Latin 1
• Poets, Urdu 3
• Polarization (Social sciences) 1
• Polemics in the Bible 1
• Policy sciences 3
• Polish language 1
• Polish language 3
• Polish literature 14
• Political activists 2
• Political anthropology--Philosophy 1
• Political ballads and songs 1
• Political campaigns 3
• Political cartoons 2
• Political correctness--Research 1
• Political corruption 3
• Political culture 2
• Political culture--German states 1
• Political culture--Philosophy 1
• Political ecology 2
• Political ethics 1
• Political geography 2
• Political geography 12
• Political leadership--Evaluation 1
• Political participation 5
• Political participation 46
• Political parties 4
• Political parties 9
• Political planning 2
• Political poetry 1
• Political poetry, English 1
• Political questions and judicial power 1
• Political refugees 2
• Political satire, German 1
• Political science 49
• Political science 129
• Political science--Philosophy 6
• Political science--Philosophy 80
• Political sociology 2
• Political sociology 29
• Political theology 3
• Political theology 5
• Political theology--History of doctrines 1
• Political violence 2
• Politics and culture 14
• Politics and culture--French regions 1
• Politics and literature 5
• Pollution 3
• Pollution 8
• Pollution prevention 3
• Polyelectrolytes 1
• Polyphonic chansons 1
• Popes--Primacy 1
• Popular culture 16
• Popular culture 67
• Popular culture--French regions 1
• Popular culture--Study and teaching 5
• Popular culture--Study and teaching 43
• Popular music 30
• Popular music 137
• Popular music--Writing and publishing 1
• Population 4
• Population geography--Political aspects 1
• Pornography 1
• Portfolios in education 1
• Ports of entry 1
• Portuguese--Social life and customs 11
• Portuguese language 6
• Portuguese language 2
• Portuguese language--Grammar 1
• Portuguese language--Grammar--Study and teaching 1
• Portuguese language--Study and teaching--Foreign speakers 1
• Portuguese literature 3
• Portuguese literature 23
• Post-apartheid era 2
• Post-communism 1
• Post-communism 2
• Post-impressionism (Art) 1
• Post-traumatic stress disorder 3
• Postcards 1
• Postcolonialism 30
• Postcolonialism 87
• Postcolonialism and the arts 2
• Postcolonialism in literature 6
• Postmodernism 5
• Postmodernism 39
• Postmodernism--Religious aspects--Christianity 1
• Postmodernism--Social aspects 1
• Postmodernism (Literature) 3
• Postmodernism (Literature) 5
• Poststructuralism 1
• Potter, Harry (Fictitious character) 1
• Potter, Harry (Fictitious character) 3
• Poultry industry 1
• Power (Social sciences) 4
• Power (Social sciences) 13
• Power (Social sciences) in literature 1
• Power resources 3
• Pragmatics 6
• Pragmatics 13
• Pragmatism 1
• Pragmatism 6
• Prakrit languages--Grammar 1
• Precognition 6
• Predictive control 1
• Pregnancy 1
• Prehistoric animals in art 2
• Prehistoric peoples 12
• Prejudices 1
• Presbyterianism 1
• Presbyterians 1
• Presidential candidates 1
• Presidents 1
• Presidents 2
• Presidents--Election 4
• Pressurized water reactors--Blowdown 1
• Priapus (Greek deity) 1
• Priesthood 1
• Primitivism 1
• Primitivism in art 1
• Princesses 1
• Printed ephemera 1
• Printing 34
• Printing--Social aspects 21
• Printing presses 2
• Printing, Arabic 6
• Printing, Greek 1
• Printing, Hebrew 2
• Prints--Limited editions 1
• Prints--Technique 6
• Prints--Technique 4
• Prints, English 1
• Prints, Italian 1
• Prisoners 1
• Prisoners--Education (Higher) 1
• Prisoners of war 1
• Prisoners' writings 4
• Privacy, Right of 1
• Privacy, Right of 8
• Private equity 1
• Privateering 1
• Privatization 1
• Problem-based learning 1
• Process control 3
• Product safety 1
• Products liability 1
• Professional ethics 1
• Professions 3
• Prognosis--Decision making 1
• Progressivism (United States politics) 1
• Project management 1
• Project management--Finance 1
• Project method in teaching 1
• Promises--Religious aspects--Christianity 1
• Prompting (Education) 1
• Propaganda 5
• Propaganda 16
• Propaganda, Japanese 1
• Propaganda, Soviet--Historiography 1
• Property tax 1
• Prophecy--Christianity 4
• Prophecy--Christianity--Biblical teaching 2
• Prose literature 4
• Prose poems 1
• Prose poems, Arabic 1
• Prose poems, Chinese 5
• Prose poems, English 4
• Prosodic analysis (Linguistics) 1
• Prosopography 3
• Prosopography 16
• Prostitutes in literature 1
• Prostitution 2
• Prostitution 3
• Protest literature 8
• Protest movements 5
• Protestantism 35
• Prussian language 1
• Pseudoscience 2
• Psychiatric hospitals 1
• Psychiatry 4
• Psychiatry 8
• Psychic trauma 8
• Psychoanalysis 5
• Psychoanalysis 50
• Psychoanalysis and literature 2
• Psychoanalysis and literature 32
• Psychology 82
• Psychology 84
• Psychology--Moral and ethical aspects 8
• Psychology and art 1
• Psychology and literature 43
• Psychology, Pathological 1
• Psychology, Religious 2
• Psychotherapist and patient 1
• Psychotherapy 8
• Public administration 5
• Public administration--Technological innovations 1
• Public architecture 1
• Public art 14
• Public art 11
• Public health 12
• Public health 49
• Public historians 1
• Public history 16
• Public history 58
• Public law 6
• Public libraries 9
• Public libraries 27
• Public officers 1
• Public policy (Law) 2
• Public relations 6
• Public relations 19
• Public schools 2
• Public spaces 2
• Public spaces--Planning 1
• Public spaces--Social aspects 1
• Public spaces in literature 1
• Public speaking 6
• Public welfare 5
• Public welfare--Law and legislation 1
• Public works 1
• Publicity 1
• Publishers and publishing 18
• Publishers and publishing 75
• Publishers and publishing 10
• Marion, Jean-Luc, 1946- 1
• Puck (Legendary character) 1
• Puerto Rican literature 1
• Puerto Ricans 1
• Punctuation 2
• Punishment 10
• Punishment--Social aspects 1
• Punk culture 4
• Punk rock music 1
• Burke, Kenneth, 1897-1993 1
• Python (Computer program language) 2
• Qualitative research 13
• Quality control 1
• Quality of life 1
• Quality of life--Philosophy 1
• Quantum theory 3
• Quaternary ammonium salts 1
• Questioning 2
• RDF (Document markup language) 1
• Rabbinical literature 5
• Rabbinical literature 1
• Rabbinical literature--Study and teaching 18
• Race--Philosophy 1
• Race discrimination 2
• Race in literature 6
• Race in literature 8
• Race relations 6
• Race relations 8
• Race relations--Study and teaching 15
• Race relations in mass media 2
• Racism--Political aspects 2
• Racism--Study and teaching 1
• Racism in literature 1
• Racism in mass media 1
• Radicalism 2
• Radicalism 12
• Radio broadcasting 1
• Radioactive wastes 1
• Railroads 6
• Railroads, Local and light 1
• Rainbow serpent 1
• Rajput (Indic people) 2
• Rape in literature 1
• Rape of the Sabine women (Legend) 1
• Rape victims 4
• Rapid prototyping 1
• Rare books 4
• Rationalism in literature 1
• Reader-response criticism 5
• Reader-response criticism 33
• Reader-response criticism--Study and teaching 1
• Readers--African Americans 1
• Reading--Philosophy 8
• Reading (Elementary) 2
• Reading comprehension 4
• Reading disability 1
• Real covenants 1
• Real property 2
• Real property 3
• Realism in literature 2
• Reasoning 1
• Recessions 1
• Recessions--Economic aspects 1
• Recessions--U.S. states 1
• Reclamation of land 1
• Reconciliation 1
• Reconciliation 2
• Zheng, Chenggong, 1624-1662 1
• Records--Management 2
• Records--Management 1
• Recycled products 2
• Recycling (Waste, etc.) 3
• Red Cross and Red Crescent 8
• Reducing diets 1
• Miriam (Biblical figure) 1
• Reference books, Arabic 1
• Reference books, Hindi 4
• Reference services (Libraries) 1
• Reflections 1
• Reforestation 1
• Reformation 10
• Reformation 36
• Reformed Church 2
• Reformed Church--Doctrines 3
• Refuse and refuse disposal 7
• Regional planning 3
• Regionalism 4
• Regionalism 10
• Registers of births, etc. 1
• Regression (Civilization) 3
• Rehabilitation 1
• Relational databases 1
• Relativity (Physics) 1
• Relaxation 1
• Relevance 2
• Reliability 1
• Religion 47
• Religion 418
• Religion--Philosophy 41
• Religion--Philosophy--History of doctrines 1
• Religion--Social aspects 15
• Religion and culture 1
• Religion and law 2
• Religion and literature 9
• Religion and literature 6
• Religion and science 3
• Religion and sociology 5
• Religion and state 14
• Religions 37
• Religions 186
• Religions--Relations 1
• Religionsgeschichtliche Schule 1
• Religious drama, Spanish 1
• Religious education 5
• Religious education 4
• Religious education of adults--Philosophy 1
• Religious education of children 1
• Religious ethics 1
• Religious ethics 7
• Religious fundamentalism--Comparative studies 9
• Religious life--Buddhism 2
• Religious life--Islam 1
• Religious literature 1
• Religious literature 21
• Religious literature, Spanish 1
• Religious poetry 1
• Religious poetry 3
• Religious poetry, Spanish 3
• Religious thought 4
• Religiousness 2
• Remedies (Law) 1
• Remembrance Day (Canada) 1
• Remote sensing 3
• Remote viewing (Parapsychology) 1
• Renaissance 11
• Renaissance 79
• Renaissance--Study and teaching 58
• Renewable energy sources 4
• Repatriation 1
• Repentance in literature 1
• Report writing 3
• Reportage literature 25
• Reportage literature, Hindi 5
• Representations of groups 2
• Reproduction 3
• Reproduction--Philosophy 7
• Reproductive health 1
• Republicanism 5
• Republics 11
• Research 60
• Research 182
• Research--Computer network resources 10
• Research--Data processing 3
• Research--Data processing 19
• Research--Evaluation 29
• Research--Management--Data processing 1
• Research--Methodology 2
• Research--Methodology 41
• Research libraries 1
• Research libraries 22
• Research libraries--Collection development 2
• Resentment 1
• Reservoirs 2
• Resource programs (Education) 5
• Responsibility 1
• Restaurants--Waste disposal 1
• Restoration ecology 1
• Resurrection 1
• Retail trade 1
• Butler, Samuel, 1612-1680 1
• Return migration 2
• Revenge in literature 1
• Revolutionaries 1
• Revolutionary literature, French 1
• Revolutions 1
• Rhetoric 18
• Rhetoric 95
• Rhetoric--Philosophy 7
• Rhetorical criticism 1
• Rhetorical criticism 2
• Right-wing extremists 5
• Risk--Mathematical models 1
• Risk--Sociological aspects 3
• Risk management 6
• Rites and ceremonies 2
• Ritual--Study and teaching 20
• Ritualism 1
• River engineering 1
• Viladot, Guillem, 1922- 1
• Rock paintings 20
• Rocks in art 1
• Roller printing (Printmaking) 1
• Roman law 1
• Romance-language literature 21
• Romanian Americans 1
• Romanian literature 2
• Romanians--Social life and customs 6
• Romanies--Music 11
• Romans--Religion 1
• Romanticism 11
• Romanticism 52
• Romanticism--Study and teaching 1
• Romanticism--Study and teaching 3
• Romanticism in music 1
• Romanticism in music 3
• Royal households 2
• Royal weddings 1
• Rubber industry and trade--Waste disposal 1
• Ruined buildings 1
• Ruins in literature 1
• Rural conditions 4
• Rural conditions 6
• Rural development 73
• Rural development--Sociological aspects 1
• Rural women--Social life and customs 1
• Rural-urban migration 1
• Russian language 1
• Russian language 3
• Russian literature 2
• Russian literature 65
• Russian poetry 2
• Russians--Politics and government 1
• Russians--Social life and customs 7
• Ruthenians 1
• Rnying-ma-pa (Sect)--Doctrines 1
• Rāma (Hindu deity) 2
• Sacraments 1
• Sacred music 365
• Sacred vocal music 2
• Sacrifice 2
• Sacrifice 4
• Saint Thomas Christians 1
• Saline water conversion 1
• Salvation 2
• Samaritans 1
• Sami (European people) 1
• Mommsen, Theodor, 1817-1903 1
• Sanitary landfills 1
• Sanskrit language 1
• Sanskrit language 13
• Sanskrit literature 7
• Sanskrit literature 19
• Sanskrit poetry 1
• Santali language 1
• Santee Indians 1
• Sassanids 1
• Satire, Urdu 1
• Saving and investment 1
• Scandinavian languages 1
• Scandinavian languages 5
• Scandinavian literature 1
• Scandinavian literature 7
• Schizophrenia 1
• Scholarly electronic publishing 1
• Scholarly electronic publishing 15
• Scholarly periodicals 1
• Scholarly publishing 21
• Scholarly publishing 76
• Scholarly publishing--Economic aspects 1
• School choice 2
• School improvement programs 10
• School management and organization 3
• School management and organization 16
• School supervision 1
• School violence 2
• School violence--Law and legislation 1
• School violence--Prevention 1
• School violence--Psychological aspects 1
• Schools, American 1
• Science 243
• Science--Historiography 1
• Science--Law and legislation 3
• Science--Methodology 7
• Science--Moral and ethical aspects 2
• Science--Philosophy 24
• Science--Philosophy 74
• Science--Social aspects 6
• Science--Social aspects 14
• Science--Sociological aspects 8
• Science--Study and teaching 1
• Science--Study and teaching 121
• Science and civilization 4
• Science and state 1
• Science and the humanities 2
• Science fiction 4
• Science fiction 79
• Science fiction films 6
• Science fiction, English 1
• Science fiction, Latin American 2
• Science fiction, Russian 1
• Science in popular culture 14
• Science, Medieval 1
• Scientific apparatus and instruments 1
• Scientific apparatus and instruments--Design and construction 1
• Scots--Social life and customs 3
• Scottish Gaelic literature 1
• Scottish literature 2
• Scottish literature 17
• Sculpture 10
• Sculpture 15
• Sculpture, French 1
• Sculpture, Italian 1
• Sculpture, Renaissance 1
• Sculpture, Roman 1
• Sea level 1
• Seals (Numismatics) 1
• Seaside architecture 2
• Seaside resorts 3
• Second language acquisition 7
• Second language acquisition 82
• Secret societies 1
• Secularism 2
• Secularism 8
• Secularization 5
• Secularization 10
• Secularization (Theology) 1
• Securities 1
• Security, International 2
• Sediment transport 1
• Seduction 2
• Selective dissemination of information 1
• Seleucids 2
• Self in literature 4
• Self-actualization (Psychology) 14
• Self-care, Health 1
• Self-efficacy 1
• Self-esteem 1
• Self-fulfilling prophecy 3
• Self-help groups 1
• Self-perception 3
• Self-publishing 1
• Semantic Web 3
• Semantic Web 7
• Semantics 10
• Semantics 29
• Semantics (Philosophy) 1
• Semiconductors 1
• Semiotics 2
• Semiotics 42
• Semiotics--Social aspects 1
• Semitic languages 2
• Semitic languages 6
• Senses and sensation 5
• Senses and sensation--Social aspects 1
• Senses and sensation in art 1
• Senses and sensation in literature 4
• Sephardim 4
• Sephardim--Study and teaching 14
• September 11 Terrorist Attacks (2001) 3
• Septic tanks 1
• Septic tanks--Maintenance and repair 1
• Sepulchral monuments 2
• Serbian literature 1
• Serbs--Social life and customs 1
• Serialism (Music) 1
• Serotoninergic mechanisms 1
• Set designers 2
• Seventeenth century 5
• Seventeenth century 392
• Seventh-Day Adventists 11
• Sewage--Purification 2
• Sewage--Purification--Activated sludge process 1
• Sewage--Purification--Aeration 1
• Sewage--Purification--Sequencing batch reactor process 4
• Sewage disposal plants 11
• Sewage lagoons 1
• Sewage sludge 11
• Sewage sludge--Disinfection 1
• Sewage sludge ash--Recycling 1
• Sewage sludge digestion 3
• Sewer-pipe 1
• Sewerage--Design and construction 2
• Sewing in art 1
• Sex in literature 8
• Sex--Philosophy 1
• Sex--Religious aspects 12
• Sex (Psychology)--Study and teaching 7
• Sex and law 10
• Sex crimes 4
• Sex differences (Psychology) 3
• Sex in literature 1
• Sex in mass media 1
• Sex in popular culture 2
• Sex instruction 1
• Sex role 18
• Sex role in literature 2
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TRANSFER OF OWNERSHIP: The Sale of Goods Act 1930 Notes

TRANSFER OF OWNERSHIP :Transfer of property from seller to Buyer (Section 20-22)

• Goods are Ascertained
• Appropriation of Goods Unconditionally
• Deliverable state Price determined at the time when contract is made
• Deliverable State Price not determined after determination of price
• Non – deliverable State after completion of process to make it deliverable.
• On approval.
• Adopting the transactions.
• Retains without notice of rejection for a long time.
• Contract is for specific goods.
• Goods are in deliverable state.
• Goods are not required to be weighed or measured for determining price.

Example : A sold to B, 100 bales of cotton lying in his godown. Before the bales could be identified and separated, all bales were destroyed in fire. Here, seller is liable for damage because ownership is not transferred.

Contents of Article

If the goods are not ready in deliverable state at the time of making contract of sale, ownership of goods is transferred after formation of contract of sale when following conditions are satisfied;

• Goods are put in deliverable state by seller.
• Fact that the goods are put into deliverable state has come to knowledge to the buyer.

Example: Certain quantity of oil was purchased by A. The oil was to be filled in tins. B filled up some of the tins and informed A to take the delivery. In the meantime, a fire destroyed the entire quantity of oil. Held, A will bear the loss of the oil which was filed in the tins and the seller must bear the loss of the balances.

If the goods are not weight or measured at the time of making contract of sale, ownership of goods is transferred after the formation of contract of sale when the following conditions are satisfied.

• Contract is for specific goods
• At the time of formation, price is not determined. It is determined later by weighed or measurement.
• Goods are put in deliverable state by the seller.
• Fact that the goods have been weighed or measured in order to determine price has come to knowledge of buyer.

Example: A sold 10 kg wheat. The wheat was to be weighed. Before the wheat was weighed, it was carried away by the flood. Held, the ownership of the wheat left with the seller and it did not pass to the buyer.

Transfer of ownership in the case of unascertained goods – Sec 18 and 23

• In the case of un-ascertained goods, when both parties come to know which particular goods shall be delivered, ownership is transferred.
• Ascertainment is first step in transfer of ownership. It means process of identification and setting aside goods from a huge mass of goods.
• Generally, it is made by seller , (unilateral act).

Appropriation :

For property to pass u/s 23, the following conditions must be satisfied –

• Goods of the description mentioned in the contract must be produced or obtained.
• The must be in a deliverable state, i.e. the Goods are in such state that the Buyer would, under the contract, be bound to take delivery of them.
• Delivers the Goods to Buyer or a carrier or other bailee for their transmission to Buyer and
• does not reserve the right of disposal. [Sec. 23(2)]
• The assent of the parties may be given expressly or impliedly and can be given either before or after the appropriation.
• Example: A having a quantity of sugar in bulk, more than sufficient to fill 20 bags, contracts to sell to B 20 bags of it. After the contract A fills 20 bags with the sugar, given notice to B that the bags are ready and requires him to take them away. B says he will take them as soon as he can. By this appropriation by A, and assent by B, property in the sugar passes to B.

Contract to sell unascertained goods is not complete sell, it is agreement to sell.

Example: 20 bags of sugar out of a bulk were agreed to be sold. 4 bags of sugar were filled up and taken away by the buyer. Subsequently, the seller filled up 16 bags and informed the buyer. The buyer replied that he will take delivery as soon as possible. However, before the buyer could take their delivery. Goods were lost. Held, the buyer was responsible as the ownership had passed to the buyer.

Transfer of ownership in Case of Goods Sent on Approval or on sale or Return Basis – Sec. 24

It means buyer has the option either to return goods. Here, property in goods doesn’t pass from seller to buyer:

Example: Certain jewellery was delivered to a buyer on sale or return basis. The buyer pledged the jewellery. Held, the buyer had adopted the transaction and as such property had passed and the seller could not recover the jewellery from the Pawnee.

Right to disposal of Goods Sec. 25

Where the railway receipt or the bill of landing is in the name of the buyer, but is sent through  the  bank  with  the  instructions  that  the  same  is  to  be  delivered  against the acceptance of the bill or payment of the price, the property in the goods shall not pass.

Deemed right of reservation Sec. 25

The seller may reserve the right of disposal under the following modes –

Reservation of right of disposal

• Shipment or Railway delivery : By making the Goods deliverable to the order of the Seller or his agent
• Drawing of B/E on buyer : By Seller drawing a bill for the price and making it acceptable by the Buyer.

Passing of Risk Sec. 26

• The general rule is that risk passes with ownership. We can say that risk and ownership   and ownership to together. However, express agreement between parties may provide otherwise.
• Possession of goods is immaterial for risk.
• When delivery is delayed because of fault of any party, he is liable for risk.
• Sometime, risk is based upon custom or usage of trade.
• Where the delivery of goods has been delayed due to the fault of buyer/seller, goods are at the risk of the party in fault.

Sale by Non – Owners or Transfer of Title by Non – Owners – Sec 27 – 30

• The general rule is expressed by maxim ‘Namodat quod non habet’ which means no one   can give what he does not himself posses. If seller’s title is defective, then buyer’s title will be defective.
• Alternatively, we can say that the seller can’t give a better title to the buyer than be himself has.

The following are the exceptions to the above general rule:

•   Sale of Estoppel [Sec. 27]:

Where the owner by his conduct or by his act leads the buyer to believe that the seller has the authority to sell and induces the buyer to buy the goods, he shall be estopped from denying the fact that seller had no right to sell the goods.

• Agent must be in possession of goods or documents of title.
• Agent has sold goods in ordinary course of business.
• Buyer has acted in good faith.
• Buyer has no knowledge that seller had no authority to sell.

Example: A entrusted his car to a mercantile agent to receive offers and not to sell. A also delivered signed documents to the agent. On the basis of these documents, the agent pretended to the buyer that he had authority to sell the car and thus, the car was sold. Held, the owner was estopped from denying buyers title.

A mercantile agent means an agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purpose of sale, or to buy goods, or to raise money on the security of goods [Section 2(9)].

• Sale by one of the joint owners – Sec 28

One of the joint owners can sale goods if following condition are satisfied.

• Goods are in sole possession of one of the joint owner.

Example: A and B Jointly purchased a car. The car was in the possession of A with the consent of B. Later on A sold the car to an innocent purchaser. The purchaser will get a good title.

• Sale by person in possession under voidable contract
• Goods must have been sold before contract is rescinded.

Example: A purchased a watch from B under fraud. A sold the watch to C, who bought it in good faith. C gets goods title.

• Sale by seller in possession after sale – Sec 30
• Seller continuous to be in possession of goods even after sale.
• Seller resells goods to new buyer.
• New buyer buys without notice to prior sell.

Example: A sells certain goods to B and promises to deliver the goods the next day. Before the delivery, A sells and delivers the goods to C, who buys them in good faith and without notice of the prior sale to B, C gets a good title to the goods, not with standing that the property had, before he purchased, passed to B.

• If the owner of goods has declared insolvent and his goods, is sold by official receiver or assignee or liquidator.
• Sale by finder of goods (Sec.169 of IC Act 1872).
• The owner can’t be found or found but refuse to pay lawful charges to finder.
• The Goods are perishable in nature or in danger. To save goods from loss, finder can sale it.
• Lawful charges of finder amount as 2/3 of its original value.

Sale by pawnee or pledge(Sec.176 of IC Act 1872).            

• If there is default on part of payment of price or performance within time. Reasonable notice is given by pawnee or pledge

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Sale of Goods Act, 1930

Sale of goods act, 1930.

An Act to define and amend the law relating to the sale of goods. Whereas it is expedient to define and amend the law relating to the sale of goods , it is hereby enacted as follows-

CHAPTER I – PRELIMINARY

1. short title, extent and commencement..

(1) This Act may be called the Sale of Goods Act,  1930 .

(2) It extends to the whole of India. (The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019 , s. 95 and the Fifth Schedule (w.e.f. 31-10-2019).)

(3) It shall come into force on the 1st day of July, 1930.

2. Definitions.

In this Act, unless there is anything repugnant in the subject of content-

(1)  “ buyer ” means a person who buys or agrees to buy goods,

(2) “ delivery ” means voluntary transfer of possession from one person to another;

(3) goods are said to be in a “ deliverable state ” when they are in such state that the buyer would under the contract be bound to take delivery of them;

(4) “ document of title to goods ” includes bill of lading , dock-warrant, warehouse keeper’s certificate, wharfingers’ certificate, railway receipt, multimodal transport document, warrant or order for the delivery of goods and any other document used in the ordinary course of business as proof of the possession or control of goods or authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented;

(5) “ fault ” means wrongful act or default;

(6) “ future goods ” means goods to be manufactured or produced or acquired by the seller after making of the contract of sale;

(7) “ goods ” means every kind of moveable property other than actionable claims and money; and 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;

(8) A person is said to be “ insolvent ” who has ceased to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed an act of insolvency or not;

(9) “ mercantile agent ” means a mercantile agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods, or to raise money on the security of goods;

(10) “ price ” means the money consideration for a sale of goods;

(11) “ property ” means the general property in goods, and not merely a special property;

(12) “ quality of goods ” includes their state or condition;

(13) “ seller ” means a person who sells or agrees to sell goods;

(14) “ specific goods ” means goods identified and agreed upon at the time a contract of sale is made; and

(15) expressions used but not defined in this Act and defined in the Indian Contract Act, 1872 , have the meaning assigned to them in that act.

3. Applications of provisions of Act 9 of 1882.

The unrepealed provisions of the Indian Contract Act, 1872 save insofar as they are inconsistent with the express provisions of this Act, shall continue to apply to contracts for sale of goods.

CHAPTER II – FORMATION OF THE CONTRACT

Contract of sale, 4. sale and agreement to sell..

(1) 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 a price. There may be a contract of sale between one part-owner and another.

(2) A contract of sale may be absolute or conditional

(3) Where under a contract of sale the property in the goods in transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell.

(4) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred.

FORMALITIES OF THE CONTRACT

5. contract of sale how made..

(1) A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer. The contract may provide for the immediate delivery of the goods or immediate payment of the price or both, or for the delivery or payment by instalments, or that the delivery or payment or both shall be postponed.

(2) Subject to the provisions of any law for the time being in force, a contract of sale may be made in writing or by word of mouth, or partly in writing and partly by word of mouth or may be implied from the conduct of the parties.

SUBJECT MATTER OF THE CONTRACT

6. existing or future goods..

(1) The goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or future goods.

(2) There may be a contract for the sale of goods the acquisition of which by the seller depends upon a contingency which may or may not happen.

(3) Where by a contract of sale the seller purports to effect a present sale of future goods, the contract operates as an agreement to sell the goods.

7. Goods perishing before making of contract.

Where there is a contract for the sale of specific goods, the contract is void if the goods without the knowledge of the seller have, at the time when the contract was made, perished or become so damaged as no longer to answer to their description in the contract.

8. Goods perishing before sale but after agreement to sell.

Where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided.

9. Ascertainment of price.

(1) The price in a contract of sale may be fixed by the contract or may be left to be fixed in manner thereby agreed or may be determined by the course of dealing between the parties.

(2) Where the price is not determined in accordance with the foregoing provisions, the buyer shall pay the seller a reasonable price. What is a reasonable price is a question of fact dependent on the circumstances of each particular case.

10. Agreement to sell at valuation.

(1) Where there is an agreement to sell goods on the terms that the price is to be fixed by the valuation of a third party and such third party cannot or does not make such valuation, the agreement is thereby avoided: Provided that, if the goods or any part thereof have been delivered to, and appropriated by, the buyer, he shall pay a reasonable price therefor.

(2) Where such third party is prevented from making the valuation by the fault of the seller or buyer, the party not in fault may maintain a suit for damages against the party in fault.

CONDITIONS AND WARRANTIES

11. stipulations as to time..

Unless a different intention appears from the terms of the contract, stipulations as to time of payment are not deemed to be of the essence of a contract of sale. Whether any other stipulations as to time is of the essence of the contract or not depends on the terms of the contract.

12. Condition and warranty.

(1) A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warranty.

(2) A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.

(3) A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.

(4) Whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract.

13. When condition to be treated as warranty.

(1) Where a contract of sale is subject to any condition to the fulfilled by the seller, the buyer may waive the condition or elect to treat the breach of the condition as a breach of warranty and not as a ground for relating the contract as repudiated.

(2) Where a contract of sale is not severable and the buyer has accepted the goods or part thereof, the breach of any condition to be fulfilled by the seller can only be treated as a breach of warranty and not as a ground for rejecting the goods and treating the contract as repudiated, unless there is a term of the contract, express or implied, to that effect.

(3) Nothing in this section shall affect the case of any condition or warranty fulfilment of which is excused by law by reason of impossibility of otherwise.

14. Implied undertaking as to tile, etc.

In a contract of sale, unless the circumstances of the contract are such as to show a different intention there is- (a) an implied condition on the part of the seller that, in the case of a sale, he has a right to sell the goods and that, 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) an implied warranty that the buyer shall have and enjoy quiet possession of the goods.

(c) an implied warranty that the goods shall be free from any charge or encumbrance in favour of any third party not declared or known to the buyer before or at the time when the contract is made.

15. Sale by description.

Where there is a contract for the sale of goods by description, there is an implied condition that the goods shall correspond with the description, and, if the sale is by sample as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.

16. Implied condition as to quality or fitness.

Subject to the provisions of this Act and of any other law for the time being in force, there is no implied warranty or condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale, excepts as follows-

(1) Where the buyer, expressly or by implication, makes known to the seller the particular purpose for which the goods are required, so as to show that the buyer relies on the seller’s skill or judgement, and the goods are of a description which it is in the course of the seller’s business to supply (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be reasonably fit for such purpose: Provided that, in the case of a contract for the sale of a specified article under its patent or other trade name, there is no implied conditions to its fitness for any particular purpose.

(2) Where 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: Provided that, if the buyer has examined the goods, there shall be no implied conditions as regards defects which such examination ought to have revealed.

(3) An implied warranty or condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.

(4) An express warranty or conditions does not negative a warranty or condition implied by this Act unless inconsistent therewith.

17. Sale by sample.

(1) 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.

(2) In the case of a contract for sale by sample there is an implied condition – (a) that the bulk shall corresponded with the sample in quality. (b) that the shall have a reasonable opportunity of comparing the bulk with the sample. (c)  that the goods shall be free from any defect, rendering them un-merchantable, which would not be apparent on reasonable examination of the sample.

CHAPTER III – EFFECTS OF THE CONTRACT

Transfer of property as between seller and buyer, 18. goods must be ascertained..

Where there is a contract for the sale of unascertained (unknown, not confirmed) goods,  no property in the goods is transferred to the buyer unless and until the goods are sanctioned.

19. Property passes when intended to pass.

(1) Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred.

(2) For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and the circumstances of the case.

(3) Unless a different intention appears, the rules contained in Section 20 to 24 are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer.

20. Specific goods in a deliverable state.

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, and it is immaterial whether the time of payment of the price or the time of delivery of the goods, or both, is postponed.

21. Specific goods to be put into a deliverable state.

Where there is a contract for the sale of specific goods and the seller is bound to do something to the goods for the purpose of putting them into a deliverable state, the property does not pass until such thing is done and the buyer has notice thereof.

22. Specific goods in a deliverable state, when the seller has to do anything thereto in order to ascertain price.

Where there is a contract for the sale of specific goods in a deliverable state, but the seller is bound to weigh, measure, test or do some other act or thing with reference to the goods for the purpose of ascertaining the price, the property does not pass until such act or thing is done and the buyer has notice thereof.

23. Sale of unascertained goods and appropriation.

(1) Where there 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, either by the seller with the assent of the buyer or by the buyer with the assent of the seller, the property in the goods thereupon passes to the buyer. Such assent may be expressed or implied, and may be given either before or after the  appropriation is made.

(2) Delivery to carrier – Where, in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier or other bailee (whether named by the buyer or not) for the purpose of transmission to the buyer, and does not reserve the right of disposal, he is deemed to have unconditionally appropriated the goods to the contract.

24. Goods sect 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- (a) when he signifies his approval or acceptance to the seller to does not other act adopting the transaction.

(b) if he does not signify his approval or acceptance to the seller but retains the gods without giving notice of rejection, then, if a time has been fixed for the return of the goods, on the expiration of such time, and, if not time has been fixed, on the expiration of a reasonable time.

25. Reservation of right of disposal.

(1) Where there is a contract for the sale of specific goods or where goods are subsequently appropriated to the contract, the seller may, by the terms of the contract or appropriation, reserve the right of disposal of the goods until certain conditions are fulfilled. In such case, notwithstanding the delivery of the goods to a buyer, or to a carrier or other bailee for the purpose of transmission to the buyer, the property in the goods does not pass to the buyer until the conditions imposed by the seller are fulfilled.

(2) Where goods are shipped or delivered to a railway administration for carriage by railway and by the bill of landing or railway receipt, as the case may be, the goods are deliverable to the order of the seller or his agent, the seller is prima facie deemed to reserve the right of disposal.

(3) Where the seller of goods draws on the buyer for the price and transmits to the buyer the bill of exchange together with the bill of lading or, as the may be, the railway receipt, to secure acceptance to payment of the bill of exchange, the buyer is bound to return the bill of lading or the railway receipt if he does not honour the bill of exchange, and, if he wrongfully retains the bill of lading or the railway receipt, the property in the goods does not pass to him.

Explanation- In this section, the expression “ Railway ” and “ Railway administration ” shall have the meanings respectively assigned to them under the Indian Railways Act, 1890.

26. Risk Prima facie passes with property.

Unless otherwise agreed, the goods remain at the seller’s risk until the property therein is transferred to the buyer, but when the property therein is transferred to the buyer, the goods are at the buyer’s risk whether delivery has been made or not: Provided that, where deliver has been delayed through the fault of either buyer or seller, the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault: Provided also that nothing in this section shall affect the duties or liabilities of either seller or buyer as a bailee of the goods of the other party.

TRANSFER OF TITLE

27. sale by person not the owner..

Subject to the provisions of this Act and of any other law for the time being in force, where goods are sold by a person who is not the owner thereof and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by conduct precluded from denying the seller’s authority to sell: Provided that, where a mercantile agent is, with the consent of the owner, in possession of the goods or of a document of title to the goods, any sale made by him, when acting in the ordinary course of business of a mercantile agent, shall be as valid as if he were expressly authorised by the owner of the goods to make the same, provided that the buyer act is good faith and has not at the time of the contract of sale notice that the seller has not authority to sell.

28. Sale by one of joint owners.

If one of several joint owners of goods has the sole possession of them by permission of the co-owners, the property in the goods in transferred to any person how buys them of such joint owner in good faith and has not at the time of the contract of sale notice that the seller has not authority to sell.

29. Sale by person in possession under voidable contract.

When the seller of gods has obtained possession thereof under a contract voidable under Section 19 or Section 19A of the Indian Contract Act, 1872 , but the contract has not rescinded at the time of the sale, the buyer acquires a god title to the goods, provided he buys them in good faith and without notice of the seller’s defect of title.

30. Seller or buyer in possession after sale.

(1) Where a person, having sold goods, continues or is in possession of the goods or of the documents of title to the goods, the delivery or transfer by that person or by a mercantile agent acting for him of the gods or documents of title under any sale, pledge o other disposition thereof to any person receiving the same in good faith and without notice of the previous sale shall have the same effect as if the person making the delivery to transfer were expressly authorised by the owner of the gods to make the same.

(2) Where a person, having bought or agreed to buy goods, obtains with the consent of the seller, possession of the goods or the documents of title to the goods, the delivery or transfer by that person or by a mercantile agent acting for him, of the goods or documents of tile under any sale, pledge or other disposition thereof to any person receiving the same in good faith and without notice of any lien or other right of the original seller in respect of the gods shall have effect as if such lien or right did not exist.

CHAPTER IV – PERFORMANCE OF THE CONTRACT

31. duties of seller and buyer..

It is the duty of the seller to deliver the goods and of the buyer  to accept and pay for them, in accordance with the terms of the contract of sale.

32. Payment and delivery are concurrent conditions.

Unless otherwise agreed, delivery of the gods 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.

33. Delivery.

Delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorised to hold them on his behalf.

34. Effect of part delivery.

A delivery of part of 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 part of the gods, with an intention of severing it from the whole, does not operate as a delivery of the remainder.

35. Buyer to apply for delivery.

Apart from any express contract, the seller of goods in not bound to deliver them until the buyer applies for delivery.

36. Rules as to delivery.

(1) Whether it is for the buyer to take possession of the goods or for the seller to send them to the buyer is a question depending in each case on the contract, express or implied, between the parties. Apart from any such contract, goods sold are to be delivered at the place at which they are the time of the sale, and goods agreed to be sold are to be delivered at the place at which they are at the time of the agreement to sell, if not then in existence, at the place at which they are manufactured or produced.

(2) 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.

(3) Where the goods at the time of sale are in the possession of a third person, there is no delivery by seller to buyer unless and until such third person acknowledges to the buyer that he holds the goods on his behalf: Provided that nothing in this section shall affect the operation of the issue or transfer of any document of title to goods.

(4) Demand or tender of delivery may be treated as ineffectual unless made at a reasonable hour. What is a reasonable hour is a question of fact.

(5) Unless otherwise agreed, the expense of and incidental to putting the goods into a deliverable state shall be borne by the seller.

37. Delivery of wrong quantity.

(1) Where the seller delivers to the buyer a quantity of good less than he contracted to sell, the buyer may reject them, but if the buyer accepts the goods so delivered he shall pay for them at the contract rate.

(2) Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell the buyer may accept the goods included in the contact and reject the rest, or he may reject the whole. If the buyer accepts the whole of the goods so delivered, he shall pay for them at the contract rate.

(3) Where the seller delivers to the buyer the gods he contract to sell mixed with goods of a different description not included in the contract., the buyer may accept the goods which are in accordance with the contract and reject the rest, or may reject the whole.

(4) The provisions of this section are subject to any usage of trade, special agreement or course of dealing between the parties.

38. Instalment deliveries.

(1) Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by instalments.

(2) Where there is a contract for the sale of goods to be delivered by stated instalments which are to be separately paid for, and the seller makes no delivery or defective delivery in respect of one or more instalments, or the buyer neglects or refuses to take delivery of or pay for one or more instalments, it is a question in each cased depending on the terms of the contract and the circumstances of the case, whether the breach of contract is a repudiation of the whole contract, or whether it is a severable breach giving rise to a claim for compensation, but not a right to treat the whole contract as repudiated.

39. Delivery to carrier or wharfinger.

(1) Where, in pursuance of a contract of sale, the seller is authorised or required to send the goods to he buyer, delivery of the goods to a carrier, whether named by the buyer or not, for the purpose of transmission to the buyer, or delivery of the goods to a wharfinger for safe custody, is prima facie deemed to be a delivery of the goods to the buyer.

(2) Unless otherwise authorised by the buyer, the seller shall makes such contract with the carrier or wharfinger on behalf of the buyer as may be reasonable having regard to the nature of the goods and the other circumstances of the case. If the seller omits so to do, and the goods are lost or damaged in course of transit or whilst in the custody of the wharfinger, the buyer made decline to treat the delivery to the carrier or wharfinger as a delivery to himself, or may hold the seller responsible in damages.

(3) Unless otherwise agreed, where goods are sent by the seller to the buyer by a route involving sea transit, in circumstances in which it is usual to insure, the seller shall give such notice to the buyer as may enable him to insure them during their sea transit and if the seller fails so to do, the goods shall be deemed to be at his risk during such sea transit.

40. Risk where goods are delivered at distant place.

Where the seller of goods agrees to deliver them at his own risk at place other than that where they are when sold, the buyer shall, nevertheless, unless otherwise agreed, take any risk of deterioration in the goods necessarily incident to the course of transit.

41. Buyer’s right of examining the goods.

(1) Where goods are delivered to the buyer which he has not previously examined, he is not deemed to have accepted them unless and until he has a reasonable opportunity of examining them for the purpose of ascertaining whether they are in conformity with the contract.

(2) Unless otherwise agreed, when the seller tenders delivery of goods to the buyer, he is bound, on request, on request, to afford the buyer a reasonable opportunity of examining the goods for the purpose of ascertaining whether they are in conformity with the contract.

42. Acceptance.

The buyer is deemed to have accepted the goods when he intimates to the seller that he has accepted them, or when the goods have been delivered to him and he does any act in relation to them which is inconsistent with the ownership of the seller, or when, after the lapse of a reasonable time, he retains the goods without intimating to the seller that he has rejected them.

43. Buyer not bound to return rejected goods.

Unless otherwise agreed, where goods are delivered to the buyer and he refuses to accept them, having the right so to do, he is not bound to return them to the seller, but it is he intimates to the seller that he intimates to the seller that he refuses to accept them.

44. Liability of buyer for neglecting or refusing delivery of goods.

When the seller is ready and willing to deliver the goods and requests the buyer to take delivery, and the buyer does not within a reasonable time after such request take delivery of the goods, he is liable to the seller for any loss occasioned by his neglect or refusal to take delivery and also for a reasonable charge for the care and custody of the goods: Provided that nothing in this section shall affect the rights of the seller where the neglect or refusal of the buyer to take delivery amounts to a repudiation of the contract.

CHAPTER V – RIGHTS OF UNPAID SELLER AGAINST THE GOODS

45. “unpaid seller” defined..

(1) The seller of goods is deemed to be an “ unpaid seller ” within  the meaning of this Act- (a) When the whole of the price has not been paid or tendered; (b) When a bill of exchange or other negotiable instrument has been received as conditional payment, and the conditions on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise.

(2) In this Chapter, the term “ seller ” includes any person who is in the position of a seller, as, for instance, an agent of the seller to whom the bill of lading has been endorsed, or a consignor or agent who has himself paid, or is directly responsible for, the price.

46. Unpaid seller’s rights.

(1) Subject to the provisions of this Act and of any law for the for the time being in force, notwithstanding that the property in the goods may have passed to the buyer, the unpaid seller of goods, as such, has by implication of law- (a) a lien on the goods for the period while he is in possession of them, (b) in case of the insolvency of the buyer a right of stopping the goods in transit after he has parted with the possession of them. (c) a right of re-sale as limited by this Act.

(2) Where the property in goods has not passed to the buyer, the unpaid seller has, in addition to his other remedies, a right of withholding delivery similar to and co-extensive with his rights of lien and stoppage in transit where the property has passed to the buyer.

UNPAID SELLER’S LIEN

47. seller’s lien..

(1) Subject to the provisions of this Act, the unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price in the following cases, namely- (a) where the goods have been sold without any stipulations as to credit. (b) where the goods have been sold on credit, but the term of credit has expired. (c) where the buyer becomes insolvent.

(2) The seller may exercise his right of lien notwithstanding that he in possession of the goods as agent or bailee for the buyer.

48. Part delivery.

Where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder, unless such part delivery has been made under such circumstances as to show an agreement to waive the lien.

49. Termination of lien.

(1) The unpaid seller of goods losses his lien thereon- (a) when he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal of the goods. (b) when the buyer or his agent lawfully obtains possession of the goods, (c) by waiver thereof.

(2) The unpaid seller of goods, having a lien thereon, not lose his lien by reason only that he has obtained a decree for the price of the goods.

STOPPAGE IN TRANSIT

50. right of stoppage in transit..

Subject to the provisions of this Act, when the buyer of goods becomes insolvent, the unpaid seller who has parted with the possession of the goods has the right of stopping them in transit, that is to say, he may resume possession of the goods as long as they are in the course of transit, and may retain them until payment or tender of the price.

51. Duration of transit.

(1) Goods are deemed to be in course of transit from the time when they are delivered to a carrier or other bailee for the purpose of transmission to the buyer, until the buyer or his agent in that behalf takes delivery of them from such carrier or other bailee.

(2) If the buyer or his agent in that behalf obtains delivery of the goods before their arrival at the appointed destination, the transit is at an end.

(3) If, after the arrival of the goods at the appointed destination, the carrier or other bailee acknowledges to the buyer or his agent that he holds the goods on his behalf and continues in possession of them as bailee for the buyer or his agent, the transit is at an end and it is immaterial that a further destination for the goods may have been indicated by the buyer.

(4) If the goods are rejected by the buyer and the carrier or other bailee continues in possession of them, the transit is not deemed to be at an end, even if the seller has refused to receive them back.

(5) When goods are delivered to a ship chartered by the buyer, it is a question depending on the circumstances of the particular case, whether they are in the possession of the master as a carrier or as agent of the buyer.

(6) Where the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that behalf, the transit is deemed to be at an end.

(7) Where part delivery of the goods has been made to the buyer or his agent in that behalf, the remainder of the goods may be stopped in transit, unless such part delivery has been given in such circumstances as to show an agreement to give up possession of the whole of the goods.

52. How stoppage in transit is effected.

(1) The unpaid seller may exercise his right to stoppage in transit either by taking actual possession of the goods, or by giving notice of his claim to the carrier or other bailee in whose possession the goods are. Such notice may be given either to the person in actual possession of the goods or to his principal. In the later case the notice, to be effectual, shall be given at such time and in such circumstances, that the principal, by the exercise of reasonable diligence, may communicate is to his servant or agent in time to prevent a delivery to the buyer.

(2) Whether notice of stoppage in transit is given by the seller to the carrier or other bailee in possession of the goods, he shall re-deliver the goods to, or according to the directions of, the seller. The expenses of such re-delivery shall be borne by the seller.

TRANSFER BY BUYER AND SELLER

53. effect to sub-sale or pledge by buyer..

(1) Subject to the provisions of this Act, the unpaid seller’s right of lien or stoppage in transit is not affected by any sale or other disposition of the gods which the buyer may have made, unless the seller has assented thereto: Provided that where a document of title to goods has been issued or lawfully transferred to any person as buyer or owner of the goods, and that person transfers the document to a person who takes the document in good faith and for consideration, then, if such last mentioned transfer was by way of sale, the unpaid seller’s right of lien of stoppage in transit is defeated, and, if such last mentioned transfer was by way of pledge or other disposition for value, the unpaid seller’s right of lien or stoppage in transit can only be exercised subject to the rights of the transferee.

(2) Where the transfer is by way of pledge, the unpaid seller may require the pledge to have the amount secured by the pledge satisfied in the first instance, as far as possible, out of any other goods or securities of the buyer in the hands of the pledge and available against the buyer.

54. Sale not generally rescinded by lien or stoppage in transit.

(1) Subject to the provisions of this section, a contract of sale is not rescinded by the mere exercise by an unpaid seller of his right of lien or stoppage in transit.

(2) Where the goods are of a perishable nature, or where the unpaid seller who has exercised his right of lien or stoppage in transit gives notices to the buyer of his intentions to re-sell, the unpaid seller may, if the buyer does not within a reasonable time pay or tender the price, re-sell the goods within a reasonable time and recover from the original buyer damages for any loss occasioned by his breach of contract, but the buyer shall not be entitled to any profit which may occur on the re-sale. If such notices is not given, the unpaid seller shall not be entitled to recover such damages and the buyer shall be entitled to the profit, if any, on the re-sale.

(3) Where an unpaid seller who has exercised his right of lien or stoppage in transit re-sells the goods, the buyer acquires a good title thereto as against the original buyer, notwithstanding that no notice of the re-sale has been given to the original buyer.

(4) Where the seller expressly reserves a right of re-sale in case the buyer should make default, and on, the buyer making default, re-sells the goods, the original contract of sale is thereby rescinded, but without prejudice to any claim which the seller may have for damages.

CHAPTER VI – SUITS FOR BREACH OF THE CONTRACT

55. suit for price..

(1) Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may sue him for the price of the goods.

(2) Where under a contract of sale the price is payable on a day certain irrespective of delivery and the buyer wrongfully neglects or refuses to pay such price, the seller may sue him for the price although the property in the goods has not passed and the goods have not been appropriated to the contract.

56. Damages for non-acceptance.

Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue him for damages for non-acceptance.

57. Damages for non-delivery.

Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue the seller for damages for non-delivery.

58. Specific performance.

Subject to the provisions of Chapter II of the Specific Relief Act, 1877 , in any suit for breach of contract to deliver specific or ascertained goods, the Court may, if it thinks fit, one the application of the plaintiff, by its decree direct that the contract shall be performed specifically, without giving the defendant the option of retaining the goods on payment of damages. The decree may be unconditional, or upon such terms and conditions as to damages, payment of the price or otherwise, as the Court may deem just, and the application of the plaintiff may be made at any time before the decree.

59. Remedy for breach of warranty.

(1) Where there is a breach of warranty by the seller, or where the buyer elects or is compelled to treat any breach of a condition on the part of the seller as a breach of warranty, the buyer is not by reason only of such breach of warranty entitled to reject the goods; but he may- (a) Set up against the seller the breach of warranty in diminution or extinction of the price; or (b) Sue the seller for damages for breach of warranty.

(2) The fact that a buyer has set up a breach of warranty in diminution or extinction of the price does not prevent him from suing for the same breach of warranty if he has suffered further damage.

60. Repudiation of contract before due date.

Where either party to a contract of sale repudiates the contract before the date of delivery, the other may either treat the contracts as subsisting and wait till the date of delivery, or he may treat the contract as rescinded and use for damages for the breach.

61. Interest by way of damages and special damages.

(1) Nothing in this Act shall affect the right of the seller or the buyer to recover interest or special damages in any case whereby law interest or special damages may be recoverable, or to recover the money paid where the consideration for the payment of it has failed.

(2) In the absence of a contract to the contrary, the Court may award interest at such rate a it think fit one the amount of the price- (a) to the seller in a suit by him for the amount of the price- from the date of the tender of the goods or from the date on which the price was payable.

(b) to the buyer in a suit by him for the refund of the price in a case of a breach of the contract on the part of the seller- from the date on which the payment was made.

CHAPTER VII – MISCELLANEOUS

62. exclusion of implied terms and conditions..

Where any right, duty or liability would arise under a contract of sale by implication of law, it may be negatived or varies by express agreement or by the course of dealing between the negatives or varied by express agreement or by the course of dealing between the parties, or by usage, if the usage is such as to bind parties to the contract.

63. Reasonable time a question of fact.

Where in this Act any reference is made to a reasonable time, the question what is a reasonable time is a question of fact.

64. Auction sale.

In the case of sale by auction- (1) where goods are put up for sale in lots, each lot is prima facie deemed to be the subject of a  separate contract of sale;

(2) the sale is complete when the auctioneer announces its completion by the fall of the hammer or in other customary manner, and, until such announcement is made, any bidder may retract his bid;

(3) a right to bid may be reserved expressly by or on behalf of the seller and, where such rights is expressly so reserved, but not otherwise, the seller or any one person on his behalf may, subject to the provisions hereinafter contained, bid at the auction;

(4) where the sale is not notified to be subject to a right to bid on behalf of the seller, it shall not be lawful for the seller to bid himself or to employ any person to bid at such sale, or for the auctioneer knowingly to take any bid from the seller or any such person, and any such person, and any sale contravening this rule may be treated as fraudulent by the buyer;

(5) the sale may be notified to be subject to a reserved or upset price;

(6) if the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the buyer.

64A. In contracts of sale, amount of increased or deceased to tax to be added or deducted.

(1) Unless a different intention appears from the terms of the contract, in the event of any tax of the nature described in sub-section (2) being imposed, increased, decreased or remitted in respect of any goods after the making of any contract for the sale or purchase of such goods without stipulations as to the payment of tax where tax was not chargeable at the time of the making of the contract, or for the sale or purchase of such goods tax paid where tax was chargeable at that time-

(a) if such imposition or increase so takes effect that the tax or increased tax, as the case may be, or any part of such tax is paid or is payable, the seller may add so much to the contract price as will be equivalent to the amount paid or payable in respect of such tax or increase of tax, and he shall be entitled to be paid and to sue for and recover such addition, and

(b) if such decrease or remission so takes effect that the decreased tax only, or no tax, as the case may be, is paid or is payable, the buyer made deduct so much from the contract price as will be equivalent to the decrease of tax or remitted tax, and he shall not be liable to pay, or be sued for, or in respect of, such deduction.

(2) The provisions of sub-section (1) apply to the following taxes, namely- (a) any duty of customs or excise on goods. (b) any tax on the sale or purchase of goods.

65. Repeal.

Rep. By the Repealing Act, 1938 (1of 1938), S. 2 and Sch.

66. Savings.

(1) Nothing in this Act or in any repeal effected thereby shall affect or be deemed  to affect- (a) any right, title, interest, obligations or liability already acquired, accrued or incurred before the commencement of this Act, or (b) any legal proceedings or remedy in respect of any such right, title, interest, obligation or liability, or (c) anything done or suffered before the commencement of this Act, or (d) any enactment relating to the sale of goods which is not expressly repealed by this Act, or (e) any rule of law not inconsistent with this Act.

(2) The rules of insolvency relating to contracts for the sale of goods shall continue to apply thereto, notwithstanding anything contained in this Act.

(3) The provisions of this Act relating to contracts of sale do not apply to any transaction in the form of a contract of sale which is intended to operate by way of mortgage, pledge, charge or other security.

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