The document summarizes key aspects of the Sale of Goods Act 1930 in India. It defines important terms like sale, agreement to sell, goods, and conditions vs warranties. It also outlines implied conditions and warranties, as well as rules around transfer of property, delivery, unpaid sellers' rights, and auction sales. The Act establishes important distinctions between different types of contracts and rights/obligations of buyers and sellers.

1. THE SALES OF GOODS ACT 1930
Presented By
Azaan Afsar

2. Contents
 Distinction Between Sale &  Express Condition & Warranties
Agreement To sell  Doctrine of Caveat Emptor & Exception
 Goods & Kinds Of Goods  Transfer Of Property
 Transfer Of Title
 Condition Or Warranties
 Meaning, Rules & types Delivery Of
 Difference Between Condition and Goods
Warranties
 Unpaid Seller & Rights Of An Unpaid
 Types Of Condition & Warranties Seller
 Implied Condition & Warranties.  Buyer’s Right Against Seller
 Meaning & Rules of Auction Sale

3. What does „CONTRACT OF SALE‟
Include
Agreement to sell
Sale i.e. where the transfer of
i.e. where the ownership of ownership in goods is to
goods is transferred takeplace at a future time
or subject to fulfilment of
some condition.
When does Agreement to Sell become Sale
An agreement to sell becomes a sale when the time elapses or the conditions
are fulfilled subject to which the ownership in the goods, is to be transferred.

4. Meaning :- Goods means every kind of movable property other than actionable claims and money; and
includes stock and shares, growing crops, grass and things attached and forming part of lands which are
agreed to be served before sale or under the contract of sale.
Contingent Unascertained
Existing Goods Goods Goods
Future Goods Specific Goods
These are the These are future Ascertained These are the
Types goods which
are in existence
Goods to be
manufactured
kinds of goods
which is
Goods which
are identified & Goods goods which
are not
of and are
physically
or produced or
acquired by the
contingent
upon the
agreed upon at
the time when a
These are
identified after
specifically
identified or
goods present in the
seller’s
seller after the
making of the
happening or
non- happening
contract of sale
is made.
the formation of
the contract.
agreed upon at
the time of the
contract of sale. contract of sale.
possession. of an uncertain
event.

5. Condition & Warranties
Condition Warranties
It is a stipulation It is a stipulation collateral
to main purpose of the
essential to main
contract, the breach of
purpose of the which gives rise to claim for
contract, the breach of damages but not the right
which gives right to the to reject the goods and
repudiate the contract treat contract as
and to claim damages. repudiated.

6. Difference between condition & warranty
Condition Warranty
1. A condition is essential to the 1. It is only collateral to main
main purpose of the contract. purpose of contract.
2. The aggrieved party can 2. The aggrieved party can claim
repudiate the contract or claim only the damages in case of
damages or both in case of breach of warranty.
breach of condition. 3. A breach of warranty cannot be
3. A breach of condition may be treated as breach of condition.
treated as breach of warranty.

7. Types of condition & Warranties
Implied Conditions:- In the absence of contract there is Implied warranties :- As per to the contact of sale
an implied condition on the part of seller that : these are the warranties :
1.Conditions as to title{Sec.14(a)}. 1.Warranty as to quiet possession{Sec.14(b)}.
2.Condition in case of sale by description{Sec.15}. 2.Warranty of freedom from
3.Condition in case of sale by sample{Sec.17}. encumbrances{Sec.14(c)}.
4.Condition in case of sale by discription & sample. 3.Warranty as to quality or fitness by usage of
5.Condition as to quality or fitness.{Sec.16(a)} trade{Sec.16(3)}.
7.Condition as to wholesomeness. 4.Warranty to disclose the dangerous nature
nature of goods.
Express Condition & Warranties :- These are those which the parties agree expressly i.e. orally or in
written.
Example :- Cash to be paid on delivery of goods, Cash & carry, etc.

8. DOCTORINE OF CAVEAT EMPTOR
► The doctrine of „Caveat Emptor‟, i.e., let the buyer beware,means that the
buyer while purchasing goods must act with a “third eye & ear”.i.e. :-
► He should be careful to see that the goods purchased will serve his purpose well.
► If the buyer is not careful & he finds later on that the goods do not server his purpose, he
cannot hold the seller liable for it.
► The seller is under no obligation to tell the defects of his articles.
Exceptions to this doctrine :-
3. Mechantable quality
1. Implied conditions as to quality
4. Usage or custom of trade.
or fitness.
5. Consent by fraud.
2. Sale of goods by description.

9. ► Goods must be ascertained
► Specific goods in a deliverable state
► Specific goods to be put in a deliverable state
► Specific goods in a deliverable state when the seller has to do
anything thereto in order to ascertain price
► Sale of unascertained goods and appropriation
► Goods sent on approval or “ on sale or return”
► Reservation of right of disposal
► Risk prima facie passes with the property

10. Transfer Of Title
► The general rule “ no one can give that which one has not got”
► Sale by person not the owner – “effect of estoppel”
► Sale by mercantile agent
► Sale by one of joint owners
► Sale by person in possession under voidable contract
► Seller in possession after sale
► Buyer in possession after sale
► Sale by an unpaid seller

11. DELIVERY OF GOODS
Delivery means a voluntary transfer of possession of goods from
one person to another- Sec[2]
Types Of Delivery
Actual Delivery :- It takes Constructive Delivery :- It Symbolic Delivery :- When
place when the goods takes place when the the goods are bulky &
change hands physically. goods do not change incapable of actual
hands physically. delivery.

12. Unpaid Seller & His Rights
The seller of goods is deemed to The unpaid seller has following rights:
be unpaid (Sec. 45-1) :-
 When whole of the price has  Rights against the goods.
not been paid of tendered. • Rights of lien
• Right of stoppage of goods in transit
 When the bill of exchange or • Right of rescale
negotiable instrument has been
received as a condition of  Rights against buyer personally
payment and the condition on • Suit for price
which it was received has not • Suit for damages for non-acceptance
• Suit for special damages and interest
been fulfilled by the reason on
dishonor of the instrument or
otherwise.

13. ►Suit for damages for non-delivery of the goods {Sec. 57}
►Suit for specific performance {Sec. 58}
►Suit for breach of warranty {Sec. 59}
►Suit
for repudiation of contract before the date of
contract{Sec. 59}
►Right to claim interest.

14. MEANING & RULES OF AUCTION SALE
 Meaning :-  Rules Of Auction Sale :-
• Bid
A sale by auction is a
public sale where different • Acceptance
intending buyers try to • An auction sale is complete when
outbid each other. The the bid has been accepted.As such
goods are ultimately sold if the goods are damaged before the
completion of sale, the loss will fall
to the highest bidder. The on the seller.
auctioneer who sells the
• Where goods are put up for sale in
goods by the auction is an
lots, each lot is prima facie deemed
agent of the seller, i.e. the to be subject of a separate contract
owner. of sale.