All about Sale of Goods Act,1930 Conditions and Warranty Rights and Duties of Buyer and seller

1. R.S.Mythlee

2. Before Sale of Goods Act, all the transactions
related to sales and purchase of the goods were
regulated by The Indian Contract Act, 1872
In 1930, Indian Sales of Goods Act was passed
In 1963, the word “ Indian” was removed and
act is now called The Sale of Goods Act,1930

3.  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
Goods
Price
Seller Buyer

4.  As per the sec 2(1) of the Act, a buyer is
someone who buys or has agreed to buy
goods. Since a sale constitutes a contract
between two parties, a buyer is one of the
parties to the contract.
 The Act defines seller in sec 2(13). A seller is
someone who sells or has agreed to sell
goods. For a sales contract to come into
existence, both the buyers and seller must be
defined by the Act. These two terms
represent the two parties of a sales contract.

5. Contract of
Sale
Sale
Ownership is
transferred
immediately.
Agreement
to sale
Ownership is
transferred on
a future date.

6.  There must be two parties i.e., Buyer and
Seller
 The parties must be competent to enter into
a contract.
 Seller and buyer must be different persons.
 Some goods must be transferred from the
seller to the buyer.
 The subject of the contract must be movable
and not movable.

7.  A document of title to goods is a document in
proof of the possession or control of goods.
 It Includes
A. Bill of lading
B. Mate’s receipt
C. Dock Warrant
D. Warehouse keeper’s certificate
E. Railway receipt

8.  Condition:
A condition is a term which is essential to the
main purpose of the contract and hence is
the foundation of contract.
 Warranty:
A warranty is a term which is collateral to the
main purpose of the contract and hence is
only subsidiary promise.

9. Basis Condition Warranty
Meaning Condition is a
stipulation as to the
main purpose of the
contract.
Warranty is a
stipulation collateral
to the main purpose
of the contract.
Scope Condition is a wider
term.
Warranty is smaller
in its scope.
Basis It forms the basis of
a contract and goes
direct to the root of
the contract
It doesn’t forms the
basis of a contract
and doesn’t goes
direct to the root of
the contract.
Consequences of
breach
Breach of condition
can repudiate the
contract.
Breach of warranty
does not repudiate
the contract, at the
most a claim for
damages can be
made.

10.  The seller has the right to refuse the delivery of
goods or to sue for the recovery of price if the
buyer has not paid the price.
 He must prepare the invoice.
 He must deliver the goods at the place and time
fixed by the contract.
 He must get the goods insured when they are
delivered to a centre.

11. Rights
A. He can demand the delivery of goods as per the
terms of the contract.
B. He can repudiate the contract and claim damages
in case of breach of condition by the seller .
C. He can examine the goods before he accepts
them.
Duties
A. He must apply for the delivery of the goods.
B. He must accept the goods and pay the price.
C. He must reject or refuse the goods not ordered.