Sale of goods act,1930

1. Subject Matter Of Sales Of
Goods

2. The subject-matter of the contract must be GOODS. ‘Goods’
means every kind of movable propertyother than actionable
claims and money; and includes stock and shares, growing
crops, grass and things attached to or forming part of that
land which are agreed to be severed before sale or under the
contract of sale.

3. Specific Goods Perishing Before Contract
 SPECIFIE NATURE OF GOODS
 DESTROY OR DETERIORATED(NOT MATCH TO DESCRIPTION) without seller knowledge, THE CONTRACT
BECOME VOID.
 THIS RULE APPLY TO ASCERTAINED GOODS NOT TO UNASCERTAINED GOODS

4. DESTUCTION OF PARTS OF GOODS
SOLD
WHEN GOODS DESTROY IN PARTS ,THE PERFORMANCE OF CONTRACT DEPENDS ON :-

5. What happens if the goods are
damaged or lost before or after their
property is passed on to the buyer?
EFFECTS OF DESTRUCTION OF GOODS

6. EFFECTS OF PERISHING OF SPECIFIC
GOODS
GOODS PERISHING BEFORE
MAKING OF CONTRACT .
GOODS PERISHING BEFORE SALE
BUT AFTER AGREEMENT TO SALE.

7. In case of destruction of unascertained
goods , the contract will not be void.
EEFECTS OF PERISHING OF
UNASCERTAINED GOODS

8. If the future goods are specific, the
destruction of such goods will amount to
supervening impossibility and the contract
shall be void.
DESTRUCTION OF FUTURE GOODS

9. CAVEAT EMPTOR


10.  Cavaet Emptor is the latin for ‘let the buyer beware’.
 It is the basic premise that the buyer buy at his/her own risk and therefore
should examine and test a product himself/herself for obvious defects and
imperfections.
 Cavaet Emptor still applies even if purchase is “as is” or when a defect is
obvious upon reasonable inspection before purchase.
 Recently, consumer protection laws have stated that the seller is to held a
higher standard of disclosure when the defects of a product cannot be
identified through casual inspection.
DEFINITION

11.  Purchase By Description: The rule of caveat emptor does not apply in a case
where goods are brought by description from a seller
 Purchase by samples and Description:
Where goods are bought by samples as well as by description and the bulk of
goods do not correspond with the description, the buyer is entitled to reject the
goods.
 Fitness for purpose:
Where the buyer informs the seller the particular purpose for which the goods are
required and relies upon seller’s skill or judgement.
EXCEPTIONS

12.  Trade Name:
In case of a contract for a specified article under it’s patent or other trade name, there is
no implied condition as to it’s fitness for any particular purpose.
 Merchantable Quality
Where the goods are brought by description from a seller who deals in goods of that
description. Whether he is a manufacturer or producer or not, there is an implied
condition that the goods should be of merchantable quality.
 Usage of Trade
Where the usage or trade annexes an implied condition or warranty as to quality or
fitness for a particular purpose and seller deviates from that, then this rule of Caveat
Emptor does not apply.

13.  Sale By Sample
In a sale of goods by sample. The rule of caveat emptor does not apply if the bulk
does not correspond with the sample, or if the buyer is not given an opportunity to
compare bulk with the sample.
 Consent By Fraud
Where the seller makes a false statement intentionally to the buyer and the buyer
relies on it or where the seller knowingly conceals the defects in the good, the
doctrine of Caveat Emptor does not apply.

14.  In 1980, a doctor killed a 13- year old girl and buried her in the garden at the
backyard of the house. But later he dismembered the body and hid the small
pieces in different parts of the house.
 The house was then sold to a couple, who only found the body parts after 10 years
in 1990. They were completely unaware of it until then.
 The initial reaction was to sell the house and they didn’t tell it to the purchasers.
 All would have gone well if it wasn’t for a documentary on the television based on
the murder.
CASE ON CAVEAT EMPTOR

15.  The purchasers demanded their money back, and appealed to the court for money.
 But as Caveat emptor took the role as a villain, the purchasers never got their
money back. They had to leave the house.

16. GOODS AND ITS
CLASSIFICATION

17. DEFINITION OF GOODS:
 Goods' is defined as per Section 2 (7) of the 'Act' as. “Every kind of movable
property other than actionable claims and money; and includes stock and shares,
growing crops, grass, and things attached to or forming part of the land which are
agreed to be severed before sale or under the contract of sale.”

18. CLASSIFICATION OF GOODS:

19. TYPES OF EXISTING GOODS:

20. The subject matter of a contract of a sale must be goods .According to
Section 2(7) the term ‘goods’ means “every kind of movable property
other than actionable claims and money and includes stock and shares
, growing crops , and things attached to or forming part of the land
which are agreed to be severed before sale or under the contract of
sale”
CLASSIFICATION OF GOODS:

21. Goods to be
manufactured, produced
or acquired after making
of the contract are called
future goods.
Goods, the acquisition of
which by the seller
,depends upon an
uncertain contingency are
called ‘contingent goods’.

22. ELEMENT OF PRICE

23. PRICE:
PRICE
MONEY
CONSIDE-
RATION
FOR SALE
OF
GOODS
Essential part of the contract.
Expressed in terms of money.
Can be fixed on a later date

24. ASCERTAINMENT OF PRICE AGREEMENT TO SELL AT VALUATION
Price fixed at the time of contract itself Price is to be fixed by the valuation of the third party
•If the third party does not make valuation ,the agreement
becomes void.
•If the third party is prevented from making the valuation, the
party not in fault may maintain a suit for the damages
against the party in fault
Left to be fixed in an agreed manner
Left to be determined by the course of dealing between
the two parties
nothing is said by the parties regarding price, the buyer must
pay a reasonable price

27. ABOUT THE PETITIONER AND
RESPONDENT
Petitioner- M/S JCL international ltd.
JCL provides solution for supply and distribution of LPG
as domestic, industrial and automotive fuel. They carry
out LPG bottling for Shell, Bharat Petroleum Corporation
Ltd.
Respondent - Bharat Petroleum Corporation Ltd.
Bharat Petroleum Corporation Ltd. (BPCL) is one of the
largest public sector oil marketing company in India.

28. SEQUENCE OF EVENTS

29. SEQUENCE OF EVENTS

30. SEQUENCE OF EVENTS

31. THE JUDGEMENT
 Section 9 of the 1930 act allows the parties not to fix the price at the time of the
transfer and to leave the determination of the amount of consideration to a later
date.
 Also re-fixing or revising of the price was done with the due notice and /or in
breach of terms and condition of the contract and/or statutory provision
 Thus, considering the provisions of sales of goods act and the contract act, the
fixation of provisional price cannot be stated to be impermissible and creates no
rights in favour of JCL’s claims.

34. Dispute

35. Dispute

36. Dispute

37. Dispute

38. Dispute

39. ….as a result

43. Court Verdict