Sale of Goods Act Overview

These flashcards cover the major concepts and legal definitions of the Sale of Goods Act, 1930, including terms, rights, obligations, and important distinctions within the framework of the Act.

What is the Sale of Goods Act, 1930's commencement date?

It came into force on the 1st of July, 1930.

In which regions of India does the Sale of Goods Act apply?

It is applicable to the whole of India except Jammu & Kashmir.

What did the Sale of Goods Act replace from the Indian Contract Act, 1872?

The law relating to this statute was contained in Chapter VII of the Indian Contract Act, 1872.

If the Sale of Goods Act is silent on a point, what applies?

The general principles of the law of contract apply.

Define 'Contract of Sale' according to Section 4(1).

'A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for a price.'

What is the definition of a 'Buyer' under the Sale of Goods Act?

'Buyer means a person who buys or agrees to buy goods.'

How is a 'Seller' defined in the Sale of Goods Act?

'Seller means a person who sells or agrees to sell goods.'

What constitutes 'Goods' as per the Sale of Goods Act?

'Goods' means every kind of movable property other than actionable claims and money.

What are the exceptions to the definition of goods?

Money, actionable claims, immovable assets, and services.

What is "Price" defined as in the Sale of Goods Act?

'Price' means the money consideration for a sale of goods.

What is the significance of exhausting the 'price' in the context of a sale?

No sale can take place without a price.

What does the term 'property' imply in the Sale of Goods Act?

'Property' means general property in goods and not merely a special property.

How is 'Delivery' defined in the context of the Sale of Goods Act?

'Delivery' means voluntary transfer of possession from one person to another.

List the essential elements of a valid contract of sale.

Requirements of a valid contract must be fulfilled, there must be two parties (seller and buyer), there must be some goods as a subject matter, property in the goods must be transferred to the buyer, and there must be some price for the goods.

What distinguishes a 'Sale' from an 'Agreement to Sell'?

In a sale, property in goods passes immediately; in an agreement to sell, it passes at a future time or on fulfillment of certain conditions.

What is a 'Mercantile Agent'?

An agent having authority to sell goods, consign goods for sale, or buy goods.

What happens when goods are destroyed before the contract of sale?

The agreement is void.

What is the doctrine of Caveat Emptor?

'Let the buyer beware'; seller is generally not responsible for bad goods.

When does ownership in goods pass to the buyer?

Ownership passes when the parties intend it to pass.

What is the classification of goods in the Sale of Goods Act?

Existing goods, future goods, and contingent goods.

What is the difference between specific goods and unascertained goods?

Specific goods are identified and agreed upon at the time of the contract, while unascertained goods are not specifically identified.

What happens if a non-owner sells goods?

Buyer cannot acquire better title than that of the seller.

In case of breach of warranty, what can the aggrieved party claim?

Damages but not a right to reject the goods.

What constitutes a valid delivery of goods?

Delivery must place the goods in the possession of the buyer or his agent.

What is the significance of an unpaid seller's rights?

An unpaid seller has various rights against goods and against the buyer, such as the right of lien, stoppage in transit, and resale.

What is implied in a sale for the goods' quality?

Goods must be of merchantable quality and fit for the purpose specified by the buyer.