Business Laws Concept-Ownership-MBA Study Material
Seller:seller& buyer are persons
Once who sells
the goods/owner ship/priority?
Once who agrees
to sells the goods,
Buyer:once who buys the goods/owner ship/priority?
Once who agree
to buys the goods
●
A
contract of sale of good is a contract where by the seller transfers ‘or’
agrees to transfer the properly in goods, ownership in goods, Title of the
goods, title of the goods to the buyer for a price.
●
The
general legal principles applicable to all contracts such as offer and
acceptance, consideration, the capacity of the parties’ free and genuine
consent, lawful object etc.
●
ESSENTIALS OF A CONTRACT OF SALE:-
The following
essentials elements are necessary for a contract of sale is
1. Two parties
2. Goods
3. Price
4. Transfer of property
5. All the essential
elements of a valid contract
Cheque
●
Bill of exchange Vs cheque
●
Endorsement
●
Negotiable
instrument
●
Promissory
note
●
Holder
in due course
What is a NI ACT?
What are the characteristics of a NI?
Explain who is a HOLDER in due
course?
State his rights under the different
negotiable instruments?
What are the essential elements of a
bill of exchange?
How does it differ from promissory
note?
What are negotiable instrument? State
the characteristics of negotiable instruments?
Rights of an un paid seller against the goods
Where the property (ownership) has passed to
the buyer a UN paid seller has the following rights against the goods those are
LIEN: A right to lien is a
right to retain possession of goods until payments of the price.
Stoppage in transit:(Transit means the carrying of goods from one place to other place)
The right of stoppage in transit is a
right of stopping the goods in travelling a transport after the UN paid seller
has parted with the possession of the goods.
Replace:The unpaid seller can resell
the goods where the goods are of a perishable nature. Where he gives notice to
the buyer of his intention to resell the goods and the buyer of his intention
to resell the goods and the buyer does not respond within a reasonable time.
● Where the property in the goods has not passed to the
buyer:-
1. with holding delivery:
Where the property
in goods has not passed to the buyer, an unpaid seller has a right of
withholding delivery.
2. Stoppage in transit:
Where the property in goods has not passed to the buyer, an unpaid
seller has a right of stoppage.
● Rights of an
unpaid seller against the buyer personally:-
These are the rights which are an
unpaid seller may enforce against the buyer personally those are vise
1.
Suit for price:-
Where property
(ownership) has passed and the buyer wrongfully neglects, refuses to pay for
the goods, the seller may we him for the price of the goods.
2.
suit for
damages for non acceptance :-
Where the buyer wrongfully neglects, refuses to accept and pay for the
goods, the seller may &we him for non acceptance.
3.
Repudiation of
contract (repudiation means rejection):-
Where the buyer, rejects the
contracts, the seller can use for damages for the breach.
4.
Suit for
interest:-
Where there am a specific
agreement me b/w buyer & seller as to the interest for price of the goods
from the date which payment becomes due, the seller may recover interest from
the buyer.
Their must be two distinct and
competent parties those are
1.
Seller
2.
Buyer
● Seller means a person who sells or agree to sell the
goods.
● Buyer means a
person who buys or agree to buy the goods
● These two
parties must be competent.
● These two parties must be major’s.
● These two parties shall not be insolvent.
● These two parties shall not be insanity persons.
● These two parties shall not be convicted by the court
of law.
● These two parties shall not be fraudulent persons.
GOODS:
The subject matter of the
contact of sale is must be goods. These goods must be movable goods only
transfer of immovable goods is not regulated by the sale of goods act.
PRICE:
The consideration for the
contract of sale is called price. The price must be money only . when
goods are exchanged for goods it is not a same it is a barker.
TRANSFER OF PROPERTY: The
transfer of property or the transfer ownership or the transfer of till of goods
will be from one party to another party . in a contract of sale property means
owner ship.
ALL THE ESSENTIAL ELEMENT OF A VALID
CONTRACT:-
All the essential elements
of a valid contract explained in the sec(10) INDIAN contract act will be
applicable to the contract of sale.
The contract of sale is the combination of
sale an agreement to sell.
Contract of sale
Sale an agreement to
sell
SALE VS AN AGREEMENT TO SELL:-
SALE AN AGREEMENT TO SELL
1. TRANSFER OF PROPERTY The owner ship
of the property the owner ship
of the property
In the goods is transferred from in the goods is to take place
The seller to buyer immediately.
at a future time , subject to
So that the seller is no more certain condition. It is known
The
owner of the good sold. as
executor contract.
It is known as Executed contract.
2. type of goods:- A sale can only be
in case of existing An agreement
to sell is mostly
And
specific goods. In case
of future and contingent goods.
3. Risk of loss: - In a
sale if the goods are destroyed,
in an agreement to sell, the goods are
The
loss falls on the buyer.
Destroyed, the loss falls on the seller.
Introduction:-
An agreement to sell
will be converted in to sale provided certain conditions have to be full
Fill.
4. Right to resell: - In a
sale the seller cannot resell the
in an agreement to sell the seller by
Goods.
taking prior consideration from the buyer
Can resell the goods.
Jus in remn:-
jus in personumn:-
It
gives right to the buyer to enjoy
it gives right to the buyer against
The goods
immediately.
The seller by fullfil in the certain,
Condition.
5. Insolvency of buyer: - in a sale, if
the buyer becomes an
agreement to sell, if the buyer
Insolvent before he pays for the goods, becomes insolvent and has not at paid
The seller have lien over the goods. The price, the goods.
6. Insolvency of seller: - in a sale, if the seller
becomes in an
agreement to seller the buyer
Insolvent
the buyer being the
has not at been the owner of the goods.
Owner is entitled to receive the
Goods.
7.performance of contract:-the aggrieved party is not band the aggrieved party is bound to
per-
To
performance the contract. He
formed the contract. He can’t escape
Can escape
from the contract. From
the contract.
8. Treatment: -
the buyer may treat the breach A breach of warranty cannot be
treated
Of condition as branch of
warranty is breach of condition
by the buyer.
Also.
●
RIGHTS
OF AN UNPAID SELLER:-
Who is an unpaid seller?
An unpaid seller is a person who has not been the paid the whole price
an un paid seller is the person. Who receive the negotiable instrument instate
of cash, but it has been dishonored sec .45 [1]
When the
payment is made by a negotiable instrument it is usually a conditional payment.
The conditional being that the instrument shall be dually honored. If the
instrument is not the honored, the seller is said to be an unpaid seller.
CONDITION:-
SEC 12 (2): A condition is a stipulation, which is essentially for the
per pose of contract
WARRENTY:
Sec 12 (3); is stipulation which
is collateral to the match per pose of contract
3days main Supply in 3 days at
RIGHTS
OF AN UNPAID SELLER
AGAINST THE GOODS AGAINST THE BUYER PERSONALLY
W HERE the property in the Where the property in the suit for suit for damages repudiation suit for
Goods has passed [sec.46 (1)] goods has not passed price for non acceptance of contract interest
[Sec. 46(2)] [sec.55]
[sec.56] [sec.60] [sec.60)
Lien stoppage resale
with holding stoppage
Sec.47 to 49 in transit
[sec.54] delivery in transit
[sec.50to52]
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