Sale of Goods Act 1930- Candida
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Transcript of Sale of Goods Act 1930- Candida
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1
NAME : CANDIDA DSOUZA
COLLEGE : KC COLLEGE OF MANAGEMENT STUDIES
ROLL NO : 02
A Presentation On
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Definitions
Kinds Of Goods Delivery
Essentials of a contract of sale
Sale v/s Agreement to sell
Sale v/s Hire Purchase
Conditions & Warranty
Types Of Conditions And Warranty
Condition v/s Warranty
Implied Conditions
Implied Warranty Caveat Emptor
Transfer of Property
Transfer of Title
Unpaid Seller
Rights of an Unpaid Seller Suit for breach in contact
Case study on the terms andcondition of a cell phone.
Content
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BUYER
Buyer means a
person who
buys or agrees
to buy goods.
[sub-section(1)]
SELLERSeller is a person who
sells or agrees to sell
goods.[sub-section(13)].
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Existing goods:
Section 6(1) - These are the goods which are in existence andare physically present in the sellers possession.
Future goods :Section 2(6)- Goods which are to be manufactured or
produced or acquired by the seller after making contract ofsale.
Specific goods:Section 2(14)These are the goods identified and agreed
upon at the time the contract is made.
Goods:
Means every kind of movable property other than actionableclaims and money.
Kinds Of Goods
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2. Symbolic delivery :Delivery of goods in case of transit may be
made by handing over documents of title of
goods , like Bill of Lading or Railway
Receipt or Delivery Order.
Delivery
Delivery means voluntary transfer of possession by one person
to another. [sec 2(2)]
1. Actual delivery :
It is actual delivery when
the goods are physicallydelivered to the buyer.
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1. There must be at least 2 parties.
2. The subject matter of the contact must
necessarily be goods.
3. The price in money (not in kind) shouldbe paid or promised.
4. The transfer of property in goods from
seller to the buyer must take place.
5. A contract of sale must be absolute orconditional. [sec 4(2)]
6. All other essential elements of a valid
contract must be present in the contract
of sale.
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1.Transferof propertyThe property of goods passes from
the seller to the buyer immediately.
So the seller is no more owner of the
goods sold.
The transfer of property of the goods
is to take place at a future time or
subject to certain conditions to be
fulfilled.
2. Type of goods
A sale can only be in case of
existing and specific goods only.
An agreement to sell is mostly in case
of future and contingent goods.Although it may refer to uncertain
existing goods.
3. Risk of loss
In a sale if the goods are destroyed ,
the loss falls on the buyer eventhough the goods are in the
possession of the seller.
In an Agreement to Sell if the goods
are destroyed the loss falls on thesellereven though the goods are in
the possession of the buyer.
Sales Agreement To Sell
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4. Consequences of the breach
In a sale the buyer fails to pay the priceof goods (or) if there is a breach of
contract by the buyer the seller can
sue for the price even though the
goods are still in his possession.
If there is a breach of contract bythe buyer the seller can only sue
for the damages and not for the
price.
Sale is an executed contract.
5. Type of contract
Agreement to sell is an executorycontract.
Property transfers immediately.
6.Property transfer
Property is transferred after
sometime.
A sale creates jus-in-rem (right
against the whole world).
Agreement to sell createjus-in-
personam (right against an
individual)
7.Against the world/ individual
Sales Agreement To Sell
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Property in the goods is transferred
to the buyer immediately at the time
of contract. The position of the buyer is that of
the owner of the goods.
The buyer cannot terminate the
contract and is bound to pay the priceof the goods.
The seller takes the risk of any loss
resulting from the insolvency of the
buyer.
The buyer can pass a good title to a
bonafide purchaser from him.
Hire-purchase, the property in the
goods passes to the hirer upon
payment of the last installment. Hire purchase, the position of the
hirer is that of a bailee till he pays
the last installment.
Hire-purchase, the hirer may, if he so
likes, terminate the contract byreturning the goods to its owner
without any liability to pay the
remaining installments.
In the case of hire purchase, the
owner takes no such risk, for if thehirer fails to pay an installment, the
owner has the right to take back the
goods.
In a hire-purchase, the hirer cannot
pass any title even to a bonafidepurchaser.
Sales Hire Purchase
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CONDITION:
A condition is a basic and important part of the contract.
If one party breaches a condition then the other party may
1.End the contract.
2.Refuse to perform their part of the contract.
3.Continue with the contract but then sue for damages.
On the other hand, a warranty is not vital to thecontract.
If one party breaches a warranty then the other party
can only continue with the contract and then sue for
damages
WARRANTY:
Conditions & Warranty
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1) Express -which are expressly provided in the contract.
2) Implied- which the law implies into the contract unless the
parties stipulate to the contrary.
Types of Conditions & Warranty
Diff b t
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Warranty
1. It is only collateral to main
purpose of contract.
2. The aggrieved party can
claim only the damages incase of breach of warranty.
3. A breach of warranty cannot
be treated as breach of
condition.
ondition
1. A condition is essential to themain purpose of the contract.
2. The aggrieved party canrepudiate the contract or claimdamages or both in case of
breach of condition.
3. A breach of condition may betreated as breach of warranty.
Difference between
Condition & Warranty
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Condition as to title [sec.14(a)]Seller has the righ t to sell.
The buyer shall have and enjoy quiet possession of the goods.
Goods shall be free from any charge or encumbrance in favor of any third
party not declared or known to the buyer before or at the time when the
contract is made.
Sale by description[sec.15]-Goods shal l correspond w ith thedescr ipt ion.
Impose obligation on seller and manufacturer where sale made in course of
business.
Where the purchaser has not seen the good and relies on the description alone,the buyer must get what has been described.
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 condition as to its fitness for any
particular purpose.
Implied Conditions
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Sale by sample [sec.17]In the case of a contract for sale by sample there is an implied condition
(a)that the bulk shall correspond with the sample in quality .
(b)that the buyer shall have a reasonable opportunity of comparing the bulk with
the sample.
(c)that the goods shall be free from any defect, rendering them unmerchantable,
which would not be apparent on reasonable examination of the sample.
Condition as to quality or fitness [sec16(1)]
There is no implied condition as to the quality or fitness of the goods sold for
any particular purpose .
However the condition has to the reasonable fitness of goods for a particular
purpose may be implied if the buyer had made know to the seller the purpose of
his purchase and relied upon the skill and judgment of the seller to select the
best goods and the seller has ordinarily been dealing in those goods.
Implied Conditions ...contd.
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1.Warranty of quiet possession [sec.14(b)].
In a contract of sale, unless there is a contrary intention, there is an implied warranty
that the buyer shall have and enjoy quite possession of the goods. If the buyer is in any
way disturbed in the enjoyment of the goods in consequences of the sellers defective
title to sell, he can claim damages from the seller.
2. Warranty of freedom from encumbrances [sec.14(c)].
In addition to the previous warranty, the buyer is entitled to a further warranty that the
goods are not subject to any charges or right in favors of a third party. If his possession isin any way disturbed by reason of the existence of any charge or encumbrance on the
goods in favor of any third party, he shall have a right to claim damages for breach of this
warranty.
3. Warranty as to quality or fitness by usage of trade [sec16(4)].
An implied warranty as to quality or fitness for a particular purpose may be annexed bythe usage of trade.
4. Warranty to disclose dangerous nature of goods.
Where a person sells goods, knowing that the goods are inherently dangerous or they are
likely to be dangerous to the buyer and that the buyer is ignorant of the danger, he must
warn the buyer of the probable danger, otherwise he will be liable in damages.
Implied Warranty
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The principle termed as caveat emptor means buyer be
aware. Generally, buyer is expected to be careful while
purchasing the goods and seller is not liable for any defects in
goods sold by him. This principle in basic form is embodiedin section 16 that subject to provisions of Sale of Goods Act.
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The general rule no one can givethat which one has not got
Sale by person not the ownereffect of estoppel
Sale by mercantile agent
Sale by one of joint owners
Sale by person in possession undervoidable contract
Seller in possession after sale
Buyer in possession after sale Sale by an unpaid seller
Transfer of Title
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Goods must be ascertained.
Specific goods in a deliverable state.
Specific goods to be put in a deliverablestate.
Specific goods in a deliverable state when
the seller has to do anything thereto inorder to ascertain price.
Sale of unascertained goods andappropriation.
Goods sent on approval or on sale orreturn.
Reservation of right of disposal.
Risk prima facie passes with the property.
Transfer Of Property
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The seller of goods is deemed to be unpaid [Sec. 45-1]
When whole of the price has not been paid of tendered.
When the bill of exchange or negotiable instrument has beenreceived as a condition of payment and the condition on which it
was received has not been fulfilled by the reason on dishonor of
the instrument or otherwise.
Unpaid Seller
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Rights of unpaid seller
Against the goods
Where theproperty in
the goods has
not passed
With holding
delivery
Stoppage in
transit
Where theproperty in
the goods haspassed
Lien
Stoppage in
transit
Re sale
Against the seller personally
Suit for priceRepudiation
of contractSuit for
damagesSuit for
interest
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Seller's lien.
Part delivery.
Termination of lien.
Right of stoppage in transit.
Duration of transit.
How stoppage in transit is effected.
The unpaid seller can exercise the right to re- sell the goods under the following
conditions .
1. When the goods are of a perishable nature . In such a case the buyer need not be
informed of the intention to re- sale.
2. When he gives notice to the buyer of his intention to re- sell the goods and the
buyer does not within a reasonable time pay or tender the price.
Unpaid Sellers lien
Stoppage in Transit
Resale
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Sellers Remedies Against Buyer:
Suit for Price.
Damages for non-acceptance.
Buyers Remedies Against Seller:
Damages for non-delivery.
Specific Performance. Remedy for Breach of Warranty.
Repudiation of contract before due date.
Interest by way of damages and special damages.
Suit for Breach of Contract
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Where under a contract of sale the propertyin the goods has passed to the buyer and the
buyer wrongfully neglects or refuses to payfor the goods according to the terms of thecontract, the seller may sue him for the price
of the goods.
Where under a contract of sale the price ispayable on a day certain irrespective ofdelivery and the buyer wrongfully neglectsor refuses to pay such price, the seller may
sue him for the price although the propertyin the goods has not passed and the goodshave not been appropriated to the contract.
Suit for Price
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Where the buyer wrongfully neglects orrefuses to accept and pay for the goods, the
seller may sue the buyer for damages for
non-acceptance.
Where the seller wrongfully neglects or
refuses to deliver the goods to the buyer, thebuyer may sue the seller for damages for non-
delivery.
Damages for Non-Acceptance
Damages for Non-Delivery
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Where either party to a contract of sale repudiates thecontract before the date of delivery, the other may either treat
the contract as subsisting and wait till the date of delivery, orhe may treat the contract as rescinded and sue for damages for
the breach.
Repudiation of contract before due date
Case Study
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NOKIA SERVICE TERMS
Case Study
Terms & Conditions of a Cell phone
1. Acceptance
These Nokia Service Terms together with the Privacy
Policy and all other additional terms and informationthat may be provided within the Service (collectively
Terms) govern your use of the service, site, content
and software (collectively the "Service"). By registering
for or using the Service or any portion of it you accept
the Terms.
The Terms constitute an agreement between you and
Nokia Corporation, Keilalahdentie 2-4, 02150 Espoo,
Finland including its affiliates and suppliers
(collectively Nokia), defining your and Nokias rights
and responsibilities with respect to the Service.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd2. EligibilityTo use the Service, you must be at least
thirteen (13) years of age. If you are
under thirteen (13) years of age, or at
least thirteen (13) years of age but a
minor where you live, you must haveyour parent or legal guardian accept
your registration on your behalf and
approve your use of the Service.
Anyone completing the registration
must be legally competent.
3. Registration and TerminationTo use a Service you may need to register and create
a Nokia account with username and a password. Youmay need to provide us with certain personal and
other information. Nokia may verify your email
address before account can be used. Upon first use of
your device and each time you update the Nokia
device software, a text message will be sent to Nokia.
The creation of a Nokia Account will require datatransmission. Data transmission costs may apply.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd4. Licenses
Nokia grants you a non-exclusive, non-transferable license,
revocable at any time at Nokias sole discretion, to access
and use the Service strictly in accordance with the Terms.
Use of the Service does not grant you any intellectualproperty rights in or to any information or content in the
Service.Using the Service
You agree to:
Comply with applicable laws, the
Terms and good manners.
Use the Service only for your
personal, non-commercial purposes.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd6. Content
Before downloading or accessing any
Content, please check whether the Content
which you wish to access is restricted by
age or marked as potentially offensive orexplicit. Nokia shall not be responsible
for any claims or offense caused or
suffered by you accessing such Content.7. Allegations of Copyright Infringement
You may notify Nokia of copyright infringement onthe Service by providing notice (a) by email with
Copyright Notification in the subject line
to [email protected], (b) by a document
titled Copyright Notification mailed to Nokia, Attn:
Copyright Agent, 102 Corporate Park Drive, White
Plains, NY 10604, USA or (c) via the online form, ifavailable.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd8. Notices
Nokia may post notices within the Service. Nokia
may also send you notices about products and
Services to the email address or telephone number
you have provided to us. You are deemed to have
received such notices at the latest within seven (7)days from Nokia sending or posting those. Your
continued use of the Services constitutes your
receipt of all notices regardless of delivery method.
9. Fees
Your use of the Service may be or may become
subject to charges.
Any fees charged by Nokia will be announced
separately in connection with the Service.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd10. Order and Payment Terms
"Order" shall mean the selection of payable
Content and/or subscription to Content offered by
Nokia and available in the Service and submission
of payment method, as well as submitting the orderby selecting the "buy", "ok", "I accept" or other
similar confirmation of acceptance in the order
flow or providing other indication of acceptance
terms that are presented to you in the order flow.
11. Cancellations and Refunds
You agree to the electronic delivery of Content
being initiated concurrently with the placement
of your Order. You will not be able to cancel
your Order once it has been processed. The
nature of the Content is such that it cannot bereturned.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd12. Feedback to Nokia
By submitting any ideas, feedback and/or proposals
("Feedback") to Nokia through the Service or other means, you
acknowledge and agree that:
(1) Nokia may have similar development ideas to the Feedback
(2) your Feedback does not contain confidential or proprietary
information of you or any third party
(3) Nokia is not under any obligation of confidentiality with
respect to the Feedback
(4) Nokia may freely use, distribute, exploit and further develop
and modify Feedback for any purpose and
(5) you are not entitled to any compensation of any kind fromNokia.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd
13. Social Activities and Location SharingYou may use features in the Service to share your location, status,
content, Materials or personal information or to interact with other
users, sites and services. By using these features you agree that
Nokia may use and provide that information to other services and
persons with whom you choose to interact or share thisinformation. Users of these services and persons, such as your
contacts, may see your location, status and/or personal information.
In using these features you agree not to share information, Content
or Material, or to link to any service or site containing information,
Content or Material, that:
(a) contains content or other material that is illegal orinappropriate;
(b) exploits intellectual property rights without authorization or
encourages users to piracy; or
(c) contains sensitive personal data of others. Any interaction does
not involve Nokia and is solely between you and the other user(s).
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd14. Availability and Technical RequirementsThe availability of Content and the Service may
vary and is subject to Nokias sole discretion.
Nokia expressly disclaims any representation or
warranty that any particular Content or Service will
be available. The Service may not be available inall countries and may be provided only in selected
languages. The Service, operations and some
features may also be dependent on the network,
compatibility of the devices used and the content
formats supported.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd15. Links to Third Party Sites and ContentNokia may include access to sites and services on the Internet or preloaded clients that
enable you to interact with sites and services that are owned or operated by third parties
and that are not part of the Service. You must review and agree to the terms and conditions
of these sites or services before using these sites or services.
16. AdvertisementsService may include advertisements. Advertisements
may be targeted to the content or information stored on
the Service, queries made through the Service, or other
information.
17. Personal DataThe Privacy Policy and any additional
privacy information made available to you
govern the use of your personal data.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd18. Limitation of Liability
The Service is provided on AS IS and AS AVAILABLE basis. Nokia does not
warrant that the Service will be uninterrupted or error or virus-free. No warranty of
any kind, either express or implied, including but not limited to warranties of title,
non-infringement, merchantability, or fitness for a particular purpose, is made inrelation to the availability, accuracy, reliability, information or content of the
Service. You expressly agree and acknowledge that the use of the Service is at your
sole risk and that you may be exposed to content from various sources.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd19. Indemnification
You agree to defend and indemnify Nokia from and
against all third party claims and all liabilities,
assessments, losses, costs or damages resulting
from or arising out of(i) your breach of the Terms,
(ii) your infringement or violation of any
intellectual property rights, other rights or
privacy of a third party, or
(iii) misuse of the Service by a third party where
the misuse was made possible by your failureto take reasonable measures to protect your
username and password against misuse.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd20. Miscellaneous
20.1 Choice of LawThe Terms are governed by the laws of Finland without regard to its conflicts of
law provisions.
20.2 Validity
The Terms neither exclude nor limit any of your mandatory rights in yourcountry of residence that cannot by law be waived. If a provision of the Terms is
found to be invalid, the remaining provisions will not be affected and the
invalid provision will be replaced with a valid provision that comes closest to
the result and purpose of the Terms. In the event one or more provisions of these
Terms are not relevant to your use of the Service, it shall not impact the validity
or enforceability of any other provision of the Terms or the Terms as a whole. Ifthere is any conflict between these Nokia Service Terms and the Privacy Policy,
the provisions of these Nokia Service Terms prevail. The provisions of the
Terms that are intended to survive termination of your registration remain valid
after termination.
Case Study
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Case Study
Terms & Conditions of a Cell phone
.....contd20.3 Changes in Terms
Nokia may modify the Terms at any time without prior notice. If the Terms are changed
in a material, adverse way, Nokia will provide a separate notice advising of the change.
You are responsible for regularly reviewing the Terms. Your continued use of the
Service constitutes your consent to any changes and modification.
21. Intellectual PropertyThe Service, Content and Software are protected under international copyright laws.Nokia claims copyrights in its Service, Content, and Software to the maximum extent of
the law. Subject to the Terms, Nokia retains all right, title and interest in the Service, its
Content, the Software and in all other Nokia products, software and other properties
provided to you or used by you through the Service.
22. AssignmentNokia may assign its rights and obligations under these Terms to its corporate parent, its
subsidiaries, or to any company under common control with Nokia. Additionally, Nokia
may assign its rights and obligations under these Terms to a third party in connection
with a merger, acquisition, sale of assets, by operation of law or otherwise.
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