...Sale of Goods National Law School of India University Law of Contracts II Transfer of rights under the Sale of Goods Act Submitted by: Shivendu Pandey Id No.- 1928 Date of Submission: 13th April, 2011. Table of Contents Introduction 3 Transfer of rights under the Sale of Goods Acts 4 What is a Sale? 4 Essentials of a contract of sale 4 Definition of property 4 Transfer of property as between seller and buyer 5 Passing of Property or Transfer of Ownership 5 Property cannot pass until the goods are ascertainable 6 Distinction between transfer of property and delivery of goods 7 Property passes when intended to pass 8 Ascertained goods 10 Passing of property in specific goods 10 Ownership in unascertained goods 11 Transfer of Title by Person not the Owner 12 Doctrine of Nemo dot quod non habet 12 Exception to the General Rule 12 Conclusion 14 Introduction Mercantile laws are laws that govern trade and commerce. These laws essentially deal with the rights and obligations of the parties to a mercantile agreement. In India, there are various mercantile laws like the Contracts Act, the Partnership Act dealing with particular mercantile relations. The Sale of Goods Act is one such act which deals with the contract of sale. Originally, the law relating to sale of goods or movables was contained in chapter VII of the Indian Contract Act, 1872. The Indian Contracts Act embodied the simple and elementary rules relating to the sale of goods. It was...
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...| SALE OF GOODS ACT, 1930 | | | master of finance and control (Part 1) September 30, 2011 Submitted by: Nishtha Tewari-2506 Aditi Rao-2560 Jasmeet Kaur-2562 SALE OF GOODS ACT, 1930 ACKNOWLEDGEMENT We would like to extend our gratitude towards Dr. Nidhi Jain for her guidance and constant supervision as well as for providing necessary information regarding the project & also for her support in completing the project. SALE OF GOODS ACT, 1930 CONTENTS I. Contract of Sale of Goods II. Overview III. Characteristics of a Contract of Sale of Goods IV. Sale v/s Agreement to sell V. Sale v/s Hire Purchase VI. Sale v/s Contract for Work and Labor VII. Kinds of Goods VIII. Perishing of Goods IX. The Price X. Modes of Price fixing XI. Agreement to sell at Valuation XII. Earnest or Deposit XIII. Stipulations as to Time XIV. Document of Title of goods XV. Conditions and Warranties XVI. Misrepresentation and Stipulation XVII. Conditions v/s warranties XVIII. When condition can be treated as warranty XIX. Implied Conditions XX. Warranties XXI. Implied Warranties XXII. Doctrine of Caveat Emptor XXIII. Exceptions to Doctrine of Caveat Emptor HISTORY BEHIND THE ACT * Sale of Goods act is a very old mercantile law. The Contracts of Sale of Goods was initially covered in Indian Contract Act, 1872 (Chapter V11) * Since the Indian Contract Act itself was a part...
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...THE SALE OF GOODS ACT Contract of sale: A contract of sale of goods is a contract where by the seller transfers OR agrees to transfer the property in the goods to the buyer for a price. Such a sale may be absolute OR conditional. Where under a contract of sale the property in the goods is transferred from the seller to the buyer the contract is termed as sale. Where the transfer of property in the goods is to take place at a future date OR after certain conditions are fulfilled the contract is termed as an ‘agreement to sale’. An agreement to sale becomes a sale after the expiry of the time agreed upon OR after the condition is fulfilled. Essentials of a contract of sale:- 1) Parties: The buyer & the seller who must be competent to contract. 2) Goods: The contract must be in respect of the sale of goods. 3) Transfer of ownership: There must be a transfer of ownership from the seller to the buyer i.e. the buyer becomes the owner of the goods after sale. 4) Consideration: Consideration of a contract of sale is always in terms of money. 5) Form: For a contract of sale there is no particular form prescribed. It can be in writing OR oral. 6) A contract of sale may be absolute OR conditional. A contract of sale is of 2 types:- When it is absolute the ownership of the goods is transferred to the buyer. Such a contract is termed as a sale. When the contract is conditional the ownership of the goods is transferred...
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...There is a contract for the sale of goods ("Bombshell" hair dye) between Lulu and the hairdresser. (a) A sale of goods by description occurs where the buyer purchases goods on the basis of a description of the goods by the seller. The hair dye did correspond with the description, despite the fact that it did not work properly. Thus, there has been no breach of this implied condition. (b) Merchantable quality means that the goods must be saleable commercially under the description by which they were sold. In order for this condition to apply, the following criteria must be satisfied; * the sale must be by description * the seller must be a seller who deals in goods of that description The criteria are satisfied because the description was for "blonde hair dye" and a hairdresser deals in goods of that description. As the blonde hair dye did not dye Lulu's hair blonde, it breached the condition of merchantable quality. (c) Fitness for purpose the relevant criteria for this condition are; * the buyer must communicate to the seller the purpose for which the goods are required (unless the goods have only one purpose) * there must be reliance on the seller's skill or judgement * the goods must be of a kind that are in the course of the...
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...Terms Act 1977. Passing of property means passing of title and ownership of the goods from the seller to the buyer. Usually, passing of property happens when some sale is made. In this matter, it is very important to identify when exactly the ownership/title has passed from the seller to the buyer. Also, possessor may not be an owner. The general rule is that only a person with title can pass good title to another person. The meaning of ownership was defined in section 61as the general property in the goods. The conclusive purpose of a contract for the sale of goods is to pass ownership of goods from the seller to the buyer. First of all, it is important to consider whether the goods are specific goods. Specific goods are determined under section 61 as the goods which are agreed and identified upon at the time a contract of sale is made. In the case Kursell v Timber Operators the Court held that if at the time the contract was made, the goods were not identified then the goods were not specific, i.e. all goods being sold must be identified. Therefore, it will not form the contract for sale of specific goods. Also, the similar decision was held in the case Re Wait, where the Court of Appeal held that the goods were not specific goods because there was no ascertainment or identification. However, if there was not contract of the specific goods than it must be the contract of unascertained goods. Section 17(1) states that property in specific goods or ascertained goods will...
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...There are a number of laws which are enforced when it comes to the regulating sales promotion. There are different acts which ensures the promotion of sales is equal and business follow. Sales promotion the regulatory framework Introduction The introduction should be designed to attract the reader's attention and give her an idea of the essay's focus. Main Body Express and Implied Terms 1. Define express terms and implied terms Key Cases: Ashmore v Lloyds, Spring v National Amalgamated SS & Dockers, Hutton v Warren, Spurling v Bradshaw & Schweppe v Harper 2. Terms implied by Statute: Sale of Goods Act, Supply of Goods Act 3. Terms implied by Common Law: Liverpool CC v Irwin & Scally v Southern Health Board 4. Distinguish between Conditions and Warranties Key Cases: Bettini v Gye & Poussard v Spiers & Pond Exclusion and Limitation Clauses 5. Define an exclusion clause Key Cases: Thompson v LMS (contractual documents), L’Estrange v Graucob (signed contracts), Spurling v Bradshaw (unsigned contracts and notices) 6. Fundamental Breach: Unfair Contracts Terms Act Key Cases: Karles v Wallis & Photo Production v Securicor 7. Statutory Restrictions: SEE STUDENT HANDBOOK PP. 46 – 48 Key Cases: R & B Customs Brokers v UDT, Smith v Eric Bush & St Alban’s DC v ICL Conclusion The conclusion brings closure to the reader, summing up your points or providing a final perspective on your topic. All the conclusion needs is three or four strong sentences, which...
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...Questions for Review Thuy huynh MG131 Canadian Business Law Jan.-8-16 Explain the role played by the Sale of Goods Act and the qualifications that must be met for the Act to apply to a particular transaction. * The roles played by the Sales of goods Act are through a buyer (a person who buys or agrees to buy goods) and seller (a person who sells or agrees to sell goods). It applies to all contracts, whether it is consumers or business transaction. * The sales of specific goods in a deliverable state, the title transfers the contract of the sale instantly. * If the specific goods needs to be repaired, the customer is notified when the work is done. * The sale needs to be weighed or measured, the customer is notified when the work is done. * Once the goods are ready for approval, the customer is notified when it will arrive and the treatment of goods as the purchaser’s own. * When the goods have not been made at the time of the contract, the title would not transfer immediately. The goods needed to be purchased before it transfers. Explain the purpose of the federal Competition Act, and list five competition offences. * The Federal Competitions Act controls mergers and abusive practices. Its purpose is to promote adaptability and efficiency of the Canadian economy. Expand the opportunities for Canadians to participate in the market developing world, but also take notice on the foreign competition in Canada. It provides...
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... Cost-Plus Contracts Short Answer Question 3 This contract consists of both terms and representations. The terms are the provisions that form part of this contract. Each term that is contained in this contract will give rise to contractual obligation. If the terms are breached, litigation will be inevitable. However, the terms in this contract are not necessarily stated. Some of the terms in this contract attract little legal consequences because they are considered to be subordinate to the main objectives of the contract. Statements also form part of this contract. These statements are those that are capable of creating contractual obligations. The following types of statements may be contained in this contract: a). Puff or sales talk. A puff will not give rise to contractual obligation especially if it lacks the backing of a reasonable person who could actually take the statement seriously. This will be amplified if the statement is further proved to be wrong. Such kind of a statement will be a puffery as is common with commercials in televisions. b). Representation. Any factual statement will not be considered as a contractual term. This statement is made by the owner; however the owner does not offer a guarantee regarding how honest it may be. Such a statement according to this contract will give rise to any contractual obligation between the owner and the builder. However, other remedies may be pursued by the aggrieved party, i.e. tortuous actions like misrepresentation...
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...contract of sale as circumscribe in section 2 (1) SGA, which says that a contract of sale of commodities is a contract by which the dealer agree to hand over the possession of goods to the customer for payment in money, termed as the price. Notwithstanding the conditions of the contract have been fabricated in order to pass over the indispensable rights of the individuals of this contract. The conditions of the contract mention the specific responsibilities and commitment of each individual to the contract. We must seem at the implied terms of this contract in order to incline to the considered objectives of the contracting individuals by way of affirming the demonstrated terms and creating a causal link to those that are not boldly demonstrated In directing the tacit terms for the protection of the people that are to be are established and thus gives rise to any reparation that may be provided by these specifications. 2. THE TWO METHOD BY WHICH CERTAIN TERMS OF A CONTRACT ARE IMPLIED There are two methods by which terms are implied in a contract. By custom, the court and by statute. Normally the terms that has been implied by a custom or the trade usage explain those terms in a conventional way as those circumstances are the common situation within the business context. For instance a case, Mr Deborah buys a car from a well reputed showroom car and so it is expected that the car has to be adequate for its function. This genre of implied terms normally acts in accordance...
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...by the supermarket. Is there any contract made between Ahmad and Suria Supermarket? (b) I) Briefly explain the law of consideration and the types of consideration under the law of contract? II) Briefly explain the term of contract which is condition and warranty? 2) (a) Briefly explain what is mean by effect of incorporation and lifting veil of incorporation under the Company Law? (b) Explain the director duties under the company law? 3) a) Explain the Termination of Employment under the Employment Act 1955? b) Explain the termination of employment under the Contract of Service? c) Explain what is the meaning of Contract of Service and Contract for service? 4) (a) Briefly explain the implied terms under Section 14 until Section 17 under Sale of Goods Act. b) Explain the differences between limited company and partnership? INSTRUCTIONS 1. The assignment must be made originally (NO PLAGRISM). In the event of copy and paste works been detected then NO MARKS will be given to the group. 2. Answer 3 questions only. 3. The line spacing must be 1.5. 4. Must be in Times New Roman font size 12. 5. JUSTIFY your works. 6. Margins: 2.54cm top, bottom, left and right. 7. LATE SUBMISSION: 50% OF THE MARKS WILL BE DECDUCTED. No consensus! 8. Highlight your cases. 9. Each question...
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...Principles of Business Law Case 1. Introduction: Maria saw the John’s announcement about the selling of 1999 Bedford van and became the potential buyer. After making a thorough inspection and test drive, she entered into a contract to buy John’s property. Situation 1. Issue: Maria found out that the vehicle was made from two different models of Bedford van and that the car is in dangerous condition. Principle: According to the Sale of Goods Act, the principle of the Implied term of corresponding with the description can be applied. The Transfer of Risk principle is also can be involved. It states that the risk of the goods remain with the seller until the ownership passes to the buyer. Application: In the announcement the owner of the car John mentioned, that it was 1999 Bedford van. If at the moment of the purchase the buyer was in the good faith and john didn’t explain the real condition of the van, it means that he breached the principle of Implied term, because the description of the car and its condition do not correspond to each other. Maria is able to sue John. However John can use the principle of Transfer of Risk to make defence and say that the risk transferred to Maria with the transfer of ownership. Moreover, the buyer was allowed to make thorough inspection and test drive, before entering the contract. Situation 2. Issue: Maria noticed that the clutch in the van was defective...
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...Exclusion And Limiting Clauses INTRODUCTION A clause may be inserted into a contract which aims to exclude or limit one party's liability for breach of contract or negligence. However, the party may only rely on such a clause if (a) it has been incorporated into the contract, and if, (b) as a matter of interpretation, it extends to the loss in question. Its validity will then be tested under (c) the Unfair Contract Terms Act 1977 and (d) the Unfair Terms in Consumer Contracts Regulations 1999. A. INCORPORATION The person wishing to rely on the exclusion clause must show that it formed part of the contract. An exclusion clause can be incorporated in the contract by signature, by notice, or by a course of dealing. 1. SIGNED DOCUMENTS If the plaintiff signs a document having contractual effect containing an exclusion clause, it will automatically form part of the contract, and he is bound by its terms. This is so even if he has not read the document and regardless of whether he understands it or not. See: Struggling with your Law studies? We can help! Have a look at our huge range of products and services that may be useful when planning your next law assignment or essay. Law Essay Writing Service Essay Marking Service Our Guarantees Our quality promise Freelance Writing Jobs Place an Order L'Estrange v Graucob [1934] 2 KB 394. However, even a signed document can be rendered wholly or partly ineffective if the other party has made a misrepresentation as...
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...to the contract, nationality, place of contract conclusion, and many other possibilities. The commercial contract is a contract for a commercial transaction or a contract made by a trader for the purposes of his trade. Therefore an international commercial contract is the addition of foreign elements in a commercial contractual relationship. Example is a contract between a French commercial agent to an American entrepreneur. Or it may be a contract between a French company and a provider of electronics in China. The formation of a contract Main points that need to be addressed: • Agreement: who decides that an argreement has been reached (objective/ subjective approach) • Offer and acceptance: offer of invitation, display of goods, advertisements etc leading to acceptance • Certainty and agreement mistakes • Consideration and form • Intention to create legal relations: domestic and social, commercial agreements • Third party rights • The content of a contract: creation and classification of contractual terms, exclusion clauses INTERNATIONAL CONTRACT LAW Laws covering trade between businesses in different countries have existed since the law merchant was born in the medieval period. As business has grown across national borders and business relations have...
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...IFRS vs GAAP – differences in revenue recognition IFRS and GAAP in Canada are both principle-based frameworks with significant conceptual similarities, but where they differ drastically is in the application of those general principles. By looking at the detailed guidance of GAAP vs IFRS for processing various accounting transactions, one can start to embrace the magnitude of the disparity between the two sets of reporting standards. Revenue recognition principle illustrates the IFRS vs GAAP divergence. Under IFRS, the revenue from the sale of goods is recognized when the seller has transferred the significant risks and rewards of ownership to the buyer and no longer has control or managerial involvement over the goods. Canadian GAAP follows the same logic, but has more specific criteria underlying these principles such as: the existence of persuasive evidence of an arrangement, the occurrence of delivery or rendering of services, and whether the seller’s price to the buyer is fixed or determinable. By the same token, Canadian GAAP provides a detailed approach for revenue recognition for multiple-deliverable arrangements which is not specific to a scenario or industry; IFRS does not provide such detailed guidance, however, it does consider some specific scenarios. The Canadian GAAP vs IFRS distinction can be further seen in examining multi-deliverable arrangements. Canadian GAAP provides a detailed approach for revenue recognition for multiple-deliverable arrangements which...
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...Introduction: I have been advised to discuse two different situation happening in the case of Belinda and Adam. Adam agrees to Belinda that he will build an extension to belinda’s house but Adam is not able to finish his work because he loses one of his machinery due to some unforeseen reasons and Belinda was having a wedding at the extention the next after its completion. Key issues: 1. Is there a contract between the two parties? 2. Is it a condition or warranty? 3. What are the terms? 4. How to end contract or stay in contract? 5. Can Adam or Belinda argue on basis of frustration? 6. Can the contract be mutually discharged? Relevant Law: Contract law: A contract is a legal binding agreement or promise. A person who makes a promise is called a promisor and The person to whom promise is made is made is called a promise.(1) carter, penden and Tolhurst If a contract is breached than the plaintiff receives a compensation from the party responsible for breach of contract.( Hadley v Baxendale 1854 pg 529) The terms are frustration( taylor and Caldwell 1863) and implied term. Apply the law to the facts: Is there a contract between the two parties? Yes there is a contract between the two parties. Condition: It is a term that is very important to contract. It is considered so important that non performing it may result in getting sued by the injured party. Frustration: It is the concept devised by the court to deal with situation in which an event...
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