Professional Documents
Culture Documents
6) Varied requirement as to delivery and payment: The contract may provide for the
immediate delivery of goods or immediate payment of the price or both,
(7) Requires no formalities: (Sec.5) The sale of goods act does not provide for a valid
contract; mere offer and acceptance thereof forms a contract; it can be made either of
the two and accepted by the other. Neither the payment nor delivery is necessary at the
point of making the contract. It can either be verbal or in writing or both or understood
through the conduct of parties involved.
(8) Absolute or Conditional: An absolute contract of sale is technically called a sale.
Thus where under a contract of sale the property in the goods is transferred from the
seller to the buyer, the contract is called a sale[Sec 4 (3)]. Thus a contract of sale is
a generic term including Sale as well as an agreement to sell.
out, and separate Sale of Goods Act was passed in 1930.The Sale of Goods Act is complimentary to
Contract Act. Though it is a special law but it has the root in Contract Act and so basic provisions of
Contract Act apply to contract of Sale of Goods also.
The use of the word condition appears to have originated in the 17th century. In my second chapter I
have discussed about it in brief. The Sale of Goods Act, 1930 defines the term condition in section 12(2).
According to this definition a condition can be defined as a stipulation which is so vital to the contract that
its complete and exact performance by one party is condition precedent to the obligation of the other party
to perform his part.
DUTIES
1.
2.
2.
exchange
for
3.
3.
4.
10
10
11
Seller :- A person who sells the goods or agrees to sell the goods is called seller.
In simple words, "Unpaid seller" means a person who has sold the goods for a price but price has not been
paid to him.
ii. And where a bill of exchange or other negotiable instruments has been accepted by him as a condition
on which it was received has not been fulfilled by reason of dishonor of the instrument or otherwise.
It is also declares that any person who is in the position of a seller like agent is also considered seller.
1. Right of Lien :For the recovery of price an unpaid seller has a right to keep the goods in his own possession.
Example :- Mr. Hunny sells the goods to Mr. Abhijit for Rs. 10 lac. Mr. Abhijit pays 5 lac and promises to
pay the remaining 5 lac after two month. Mr. Hunny has a right of lien on the goods.
2. Right of Stopping :If buyer becomes insolvent, an unpaid seller has a right of stopping the goods in transit.
Example :- "X" sells 100 bales of cotton to "Y" but delivery will be two stages. "X" delivers 50 bales first.
Later on he comes know that "Y" has become insolvent. "X" can stop delivery of bales in transit.
3. Right of Resale :An unpaid seller is considered the owner of the goods until he is not paid by the buyer. So he has a right to
sell his goods subject to few conditions.
Example :- "X" sells one horse to "Y" on credit. "Y" does not pay. "X" can resell to other person.
4. Right of Delivery :The unpaid seller has a right of with holding the delivery of goods where the property in the goods has not
passed to the buyer.
5. Right of Claim :The unpaid seller has also a right to claim the buyer for the prices of goods.
i. Suit For Price :- If the goods have passed to the buyer and buyer refuse to pay the price, the seller can
sue for price.
Example :- "M" sells the goods to "Y" for Rs. 5 lac. "Y" refuses to pay. "M" can sue for price.
ii. Suit For Damages For Non Acceptance :- If buyer refuses to accept and pay for the goods, the seller
has the right to sue him for damages non-acceptance. He can recover only damages and not full price.
iii. Suit For Interest & Special Damages :- The unpaid seller can recover the reasonable interest on the
unpaid price goods sold. The seller can also sue the buyer for special damages where both the parties are
aware of such loss at the time of contract.