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
LIENA 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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