Key Insights on Sale of Goods Act 1930

Sep 8, 2024

Sale of Goods Act 1930 Lecture Notes

Introduction

  • Topic: Sale of Goods Act 1930
  • Objective: Discuss 10 selected questions on the subject, aiming to write at least 6 within 10 months.

Key Questions Discussed

  1. Destruction of Goods

    • Question: Describe the consequences of destruction of goods under Sale of Goods Act 1930 when goods are destroyed after agreement to sell but before the sale is affected.
    • Relevant Sections:
      • Section 7: Destruction before sale
      • Section 8: Destruction after agreement to sell but before sale
    • Consequences:
      • Risk is on the seller if goods are destroyed after the agreement to sell.
      • The contract becomes void as the subject matter is destroyed.

  2. Contract Validity Without Price Discussion

    • Question: Mr. A refuses to deliver a car to Mr. B due to not discussing the price. Validity of the contract?
    • Relevant Section: Section 9
    • Outcome: If the price is not discussed, the contract is still valid, and a reasonable price is to be paid by the buyer.

  3. Consumer Rights in Delivery

    • Scenario: Mr. Das purchased rice but received different qualities due to negligence in checking the sample.
    • Relevant Sections:
      • Section 17: Sale by Sample
      • Section 15: Sale by Description
    • Conclusion: Buyer is responsible if they fail to check the sample.

  4. Risk of Goods

    • Question: Who bears the loss of goods during delivery?
    • Relevant Sections:
      • Section 26: Risk follows ownership
      • Section 18: Ownership transfer
    • Outcome: Buyer bears risk of goods if they refuse delivery.

  5. Auction Sales

    • Question: When is an auction sale completed?
    • Relevant Section: Section 64
    • Conclusion: Auction sale is completed when the hammer falls, regardless of payment or delivery dates.

  6. Rights of Unpaid Seller Against Goods

    • Question: What are the rights of an unpaid seller?
    • Relevant Section: Section 46
    • Rights:
      • Right of lien (Sections 47-49)
      • Right of stoppage in transit (Sections 50-52)
      • Right of resale (Section 54)

  7. Delivery Situations and Risks

    • Scenario: Goods packed but not picked up by the buyer, resulting in loss.
    • Relevant Section: Section 44
    • Conclusion: Buyer bears loss due to refusal of delivery.

  8. Stoppage in Transit

    • Question: Can an unpaid seller execute stoppage in transit?
    • Conditions: Buyer must be insolvent, and the goods must be out of the seller's possession but not yet in the buyer's possession.
    • Conclusion: If the carrier acknowledges delivery, transit is considered ended; thus, stoppage cannot be enforced.

Conclusion

  • The lecture focused on significant aspects of the Sale of Goods Act 1930, discussing various scenarios, relevant sections, and outcomes.
  • Emphasis was placed on understanding the implications of different provisions for both buyers and sellers.