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Communication Essay

4800 words - 20 pages



The law relating to sales of goods act is come into existences in 1930. Before the present act the law of sales of goods act contained in Indian contracts act.

All the essential elements of the valid contract are applicable to sale of goods also viz offer and acceptance, free consent, capacity of the patties, consideration etc. but there are some special feature are there in sales of goods. Like

➢ conditions and warranties.
➢ when the ownership of the goods sold pass to the buyer.
➢ in what circumstance a buyer acquires a good title over the goods.
➢ the duties and rights of the seller and buyer

What is a Contract of Sale

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it must be in the form of money.[when goods are exchanged for goods , it is not a sale . it is a barter system.] the consideration may be partly in goods and partly in money. Eg: exchange offer.

➢ Transfer of General Property: There should be a transfer or agreement to transfer the goods. It means that transfer of ownership.

➢ Goods: the subject matters of the contract of statement are the movable goods, which is to be transferred from seller to buyer. The goods of any kind except immovable goods and money.

Distinction between Sale and Agreement to Sale:

1. Transfer of Property:

In the sale the goods pass from the seller to buyer immediately.

Where as in agreement to sale the transfer of property take place in future time or some conditions to be fulfilled.

2. Risk of loss:

In a sale, the buyer immediately becomes the owner of the goods. If the goods are destroyed or damaged the loss falls on the buyer even though the goods are in the possession of the seller.

Where as in agreement to sale if any damages are occurred to the goods. The loss falls to the seller.

3. Consequences of Breach (break, violation):

In a sale, if the buyer fails to pay the price of the goods or there is a breach of contract by the buyer, the seller can file a case against the buyer, even though the goods are still in his possession.

Where as in agreement to sale if any breach of contract arises like buyer fails to take delivery of the goods. The seller claim damages from the buyer.

4. General and particular property:

In case of sale, the buyer gets an absolute right of ownership against the whole world. The right is called JUS IN REM [Latin word absolute right]

Where as in agreement to sale the buyer and seller get remedy each other if any breach of contract arises. This right is called JUS IN PERSONAM.

5. Insolvency of buyer:

In a sale, if the buyer is declared as an insolvent, the seller delivers the goods to an official receiver. He can claim only actual price of the goods.

Where as in agreement to sale, when the buyer becomes insolvent before he pays for the goods, the seller is not bound to part with the goods until he is paid for.

6. Insolvency of seller:

In sale, if the seller is declared as insolvent, the buyer is entitles to recover the goods from official receiver.

Where as in an agreement to sale, if the buyer already paid the price, he can claim reasonable interest or dividends and not the goods.

7. Right of Re-sale:

In a sale, the property is with the buyer and as the seller cannot resell the goods. If he does so, the buyer can recover the goods even from 3rd parties also.

Where as in agreement to sale the property remain with the seller and he can dispose of, as he likes. He may resale the goods. In this regard the buyer having only right to claim damages against the seller for breach of contract.

Rights of an unpaid seller:

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