The Sale of Goods Act, 1930

Introduction

• Governs the sale of goods in India, codified separately from the Indian Contract Act of 1872.
• Sections 76 to 123 of the Contract Act were repealed for this purpose.
• Incorporates provisions from the English Sale of Goods Act, 1893.
• Article by Kishita Gupta, published by Rachit Garg, covers detailed discussion and case laws related to the Act.

Definitions

• Buyer: Includes those willing to purchase goods; not a buyer if the agreement allows optional purchase without obligation.
• Delivery: Transfer of possession voluntarily; can be actual or constructive.
• Goods: Movable property excluding money and actionable claims. Case laws define what constitutes goods.
• Specific Goods: Identified at the time of sale; distinct from unascertained goods.

Formation of a Contract

• Contract of Sale: Includes sale and agreement to sell. Property transfer determines if it's an executed sale or executory agreement.
• Absolute vs. Conditional Contracts: Absolute involves complete transfer; conditional has specific stipulations.
• Formalities: Offer, acceptance, delivery arrangements, and price provisions. May be written, oral, or implied.

Subject Matter of a Contract

• Existing or Future Goods: Includes those in possession or expected in the future.
• Goods Perishing Before Contract: Contract void if goods perish without seller's knowledge.
• Goods Perishing After Agreement: Section 8 covers if goods perish after agreement but before risk transfer.

Conditions and Warranties

• Implied Conditions: Title, description, and fitness implied unless stated otherwise.
• Implied Warranties: Quiet possession and freedom from encumbrances.
• Expressed Conditions and Warranties: Agreed upon by both parties and necessary for contract function.

Effects of the Contract

• Transfer of Property: Governed by intention and deliverable state.
• Transfer of Title: 'Nemo dat quod non habet' principle with exceptions for mercantile agents and joint owners.

Performance of the Contract

Seller

• Rights include disposal control, lien assertion, resale under certain conditions.
• Duties involve making goods available, aligning with contract terms, and timely delivery.

Buyer

• Rights include receiving goods per contract, inspection rights, and suing for breach.
• Duties involve accepting delivery, payment, and notifying seller in case of rejection.

Rights of an Unpaid Seller

• Right to Lien: Retain possession until price is paid.
• Stoppage of Goods in Transit: Regain possession if buyer becomes insolvent.

Suit for Breach of Contract

• Suit for Price: Applicable when property has passed to the buyer.
• Damages for Non-Acceptance: Seller can sue if buyer refuses goods.
• Specific Performance: Court may order the contract to be performed.

United Nations Convention on Contracts for the International Sale of Goods, 1980

• Not ratified by India but referenced in international cases.
• Convention could update and improve current outdated laws.

Conclusion

• Urges India to update its laws in line with international standards.
• Existing laws considered outdated for modern trade scenarios.

FAQs

• Covers essentials, breach consequences, and risks in sale of goods in India.

Refer to the original article for detailed case laws and specific legal interpretations.