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    Business Law

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    Ahsanul Sumon
    The document defines key concepts in contracts for the sale of goods. It explains that a buyer purchases goods, a seller sells goods, and goods refer to movable property excluding actionable claims and money. It also defines existing, future, and contingent goods. A sale involves the immediate transfer of ownership from seller to buyer, while an agreement to sell involves transfer of ownership at a later time or once conditions are met. Other key points covered include distinguishing conditions from warranties in a contract, the doctrine of caveat emptor, and exceptions to this doctrine.

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    Business Law

    Uploaded by

    Ahsanul Sumon
    63 views4 pages
    The document defines key concepts in contracts for the sale of goods. It explains that a buyer purchases goods, a seller sells goods, and goods refer to movable property excluding actionable claims and money. It also defines existing, future, and contingent goods. A sale involves the immediate transfer of ownership from seller to buyer, while an agreement to sell involves transfer of ownership at a later time or once conditions are met. Other key points covered include distinguishing conditions from warranties in a contract, the doctrine of caveat emptor, and exceptions to this doctrine.

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    The document defines key concepts in contracts for the sale of goods. It explains that a buyer purchases goods, a seller sells goods, and goods refer to movable property excluding actionable claims and money. It also defines existing, future, and contingent goods. A sale involves the immediate transfer of ownership from seller to buyer, while an agreement to sell involves transfer of ownership at a later time or once conditions are met. Other key points covered include distinguishing conditions from warranties in a contract, the doctrine of caveat emptor, and exceptions to this doctrine.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    63 views4 pages

    Business Law

    Uploaded by

    Ahsanul Sumon
    The document defines key concepts in contracts for the sale of goods. It explains that a buyer purchases goods, a seller sells goods, and goods refer to movable property excluding actionable claims and money. It also defines existing, future, and contingent goods. A sale involves the immediate transfer of ownership from seller to buyer, while an agreement to sell involves transfer of ownership at a later time or once conditions are met. Other key points covered include distinguishing conditions from warranties in a contract, the doctrine of caveat emptor, and exceptions to this doctrine.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 4

    Ques-1: Define Buyer, Seller & Goods ?

    Buyer : Buyer means a person who buys or agrees to buy goods. Seller : Seller means a person who sells or agrees to sell a goods. Goods : The term goods includes every kind of movable property except 1. Actionable claims 2. Money

    Ques-2 : Define existing goods, future goods & contingent goods?


    Existing goods : Existing goods are goods which are already in existence & which are physically present in some persons possession & ownership. Existing goods may be 1. Specific and Ascertained 2. Generic and unascertained Specific goods : Specific goods are goods which can be clearly identified & recognized as separate things. e.g. a particular picture by a painter. Generic goods : Generic goods are goods indicated by description & not separately identified. Future goods : Future goods are goods which will be manufactured or produced or acquired by the seller after the making of the contract of sale. Example : P agrees to sell to Q all the mangoes which will be produce in his garden next year. This is an agreement for the sale of future goods Contingent goods : There may be contract for the sale of goods the acquisition of which by the seller depends upon a contingency which may or may not happen. In such cases the goods sold are called contingent goods. Example : X agrees to sell to Y a certain ring provided he is able to purchase it from its present owner. This is an agreement for the sale of contingent goods.

    Ques-3 : Define sale & agreement to sell?


    Sale : A contract for the sale of goods may be either a sale or an agreement to sell. Where under a contract of sale the ownership of the property is transferred from the seller to the buyer the contract is called sale. Agreement to sell : When transfer of ownership is to take place at a future time or subject to some condition to be fulfilled later, the contract is called an agreement to sell. Example : P agrees to buy from B a haystack on Bs land, with liberty to come on Bs land to take it away. This is a sale because the properties has passed to the buyer.

    Ques-4 : Difference between a sale & an agreement to sell?


    Transfer of ownership : In a sale ownership is transferred immediately from the seller to a buyer but in an agreement to sell ownership is transferred at a the future time or after fulfillment of agreed condition. Transfer of risk : In a sale ownership is transferred form the seller to the buyer at the risk. But in agreement to sell the product belongs to the seller & the risk remains with him. Remedial measures : In the case of a sale, the unpaid seller has certain relives available. e.g. Lien, stoppage in the transit, resale etc. In case of an agreement to sell, the sellers remedy for breach of contract by the buyers, is a suit for damages. Nature of contract : Sale is an executed contract. But an agreement to sell is an executory contract.

    Ques-5 : Essential elements of sale & agreement to sell?


    A contract for sale of goods must satisfy all the essential elements necessary for the formation or a valid contract. e.g. the parties must competent to contract. there must be free consent, consideration & the object must be lawful. The essential is given belowMoveable Goods : The sale of goods act deals only with movable goods, excepting actionable claim & money.

    Movable goods for money : There must a contract for the exchange of movable goods for money. Two parties : A sale is a bilateral contract. So there must be two parties in a contract or sale. Method of forming the contract : A contract of sale may be i.e. writing or by word of mouth or may be implied from the conduct of the parties. The terms of contract : The parties may agree upon any term concerning the time, place & mode of delivery. The terms may be of two types 1. Essential & 2. Non essential

    Ques-6 : Definition of condition & Warranty ?


    Condition : A condition is a stipulation essential to the main purpose of contract, the breach of which gives rise to a right to treat the contract as repudiated. Warranty : A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not a right to reject the goods & treat the contract as repudiated.

    Ques-7 : Distinction between condition & warranty ?


    Condition is a term which is essential to the main purpose to the contract. Warranty is a collateral term. Breach of a condition gives the aggrieved party a right to repudiate the contract. Breach of warranty entitles the aggrieved party to claim damages only. A breach condition may be treated as a warranty, but a warranty can not become a condition.

    Ques-8 : Definition exceptions ?

    of

    doctrine

    caveat

    emptor

    &

    Caveat emptor : It is a latin expression which means buyers beware. The doctrine of caveat emptor : It means ordinary a buyer must buy a goods after satisfying himself of their quality and fitness. If he makes a bad choice he can not blame the seller or recover damages for him. Exceptions : The exceptions are as follows Where the buyer relies upon the skill & judgment of the seller. Where by custom an implied condition of fitness is annexed to a contract of sale. Where the seller is guilty of fraud. Where there is sale of goods by description, there is an implied condition that the goods are fit for sale.

    Ques-9 : When a condition can be treated as a warranty ? Explain it .


    1. Voluntary waiver of a condition : The buyer may elect to treat a breach of condition as a breach of warranty, i.e. instead of repudiating the contract he may accept performance & sue for damages, if he has suffered any . 2. Compulsory waiver of a condition : Where a contract of a sale is not severable & the buyer has accepted the goods or a part there of . In such a case, the breach of condition can only be treated as a breach of warranty. Example : Certain goods were promised to be delivered on 1st June, time being made the essence of the contract. The goods were delivered on the 2snd June. The buyer may accept the goods.

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