“Under Sale of goods act, 1930 it is the duty of the seller to deliver the goods and the buyer to accept and pay for, In accordance with the terms of the contract of sale (S 31)”.
Introduction
The Sale of Goods Act is an Act to define and amend the law relating to the sale of goods. It also governs the contracts relating to sale of goods. This Act applies to the whole of India except the State of Jammu & Kashmir. It came into force on 1st July 1930. The contracts for sale of goods are subject to the general principles of the law relating to contracts i.e. the Indian Contact Act. A contract for sale of goods has, however, certain specific features such as, transfer of ownership of the goods, delivery of goods rights and duties of the buyer and seller, remedies for breach of contract, conditions and warranties implied under a contract for sale of goods.Sale of Goods Act (with its variations) is a stock short title used for legislation in the United Kingdom relating to the sale of goods.
What is Sale of goods act 1930?
Sale of Goods Act (with its variations) is a stock short title used for legislation in the United Kingdom relating to the sale of goods. A partnership firm was dissolved and the surplus assets, including some goods, were divided among the partners in specie. The sales-tax officer sought to tax this transaction. . [1] Held, this transaction did not amount to sale. The partners were themselves the joint owners of the goods and they could not be both sellers and buyers. Moreover, no money consideration was promised or paid by any partner to the firm as consideration for the goods allotted to him. Transfer or agreement to transfer the ownership of goods. In a contract of sale, it is the ownership that is transferred (in the case of sale), or agreed to be transferred (in the case of agreement to sell), as against transfer of mere possession or limited interest (as in the case of bailment or pledge).The subject matter of the contract must necessarily be goods. The sale of immovable property is not covered under Sale of Goods Act. The expression ‘goods’ is defined in Sec.2(7).
The duty of the seller to deliver the goods and the buyer to accept and pay for, In accordance with the terms of the contract of sale by-
In this Act, unless there is anything repugnant in the subject or context, –
(1) “buyer” means a person who buys or agrees to buy goods;
(2) “delivery” means voluntary transfer of possession from one person to another;
(3) goods are said to be in a “deliverable state” when they are in such state that the buyer would under the contract be bound to take delivery of them;
(4) “document of title to goods” includes a bill of lading, dock- warrant, warehouse keeper’s certificate, harbingers’ certificate, railway receipt, warrant or order for the delivery of goods and any other document used in ordinary course of business as proof of the possession or control of goods, or authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented .[2]
(5) “fault” means wrongful act or default;
(6) “future goods” means goods to be manufactured or produced or acquired by the seller after the making of the contract of sale; [3]
(7) “goods” means every kind of movable property other than actionable claims and money; and includes 4[electricity, water, gas,] stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;
(8) a person is said to be “insolvent” who has ceased to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed an act of insolvency or not;
(9) “mercantile agent” means a mercantile agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods, or to raise money on the security of goods;
(10) “price” means the money consideration for a sale of goods;
(11) “Property” means the general property in goods, and not merely a special property;
(12) “quality of goods” includes their state or condition;
4. Ins. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S,2 with effect from the 7th June, 1962)
(13) “Seller” means a person who sells or agrees to sell goods;
(14) “specific goods” means goods identified and agreed upon at the time a contract of sale is made; [4]
(15) expressions used but not defined in this act and defined in the Contract Act, 1872 (IX of 1872), have the meanings assigned to them in that Act.
Application of provisions of Act of 1872. –
The unrepeated provisions of the Contract Act, 1872 (IX of 1872), save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to contracts for the sale of goods.
Sale and agreement to sell
(1) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another. [5]
(2) A contract of sale may be absolute or conditional
(3) Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called in agreement to sell.
(4) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred. [6]
Contract of sale how made
(1) A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer. The contract may provide for the immediate delivery of the goods or immediate payment of the price or both, or for the delivery or payment by installments, or that the delivery, payment, or both shall be postponed. [7]
(2) Subject to the provisions of any law for the time being in force a contract of sale may be made in writing or by word of mouth, or partly in writing and party by word of mouth or may be implied from the conduct of the parties.
Subject-matter of Contract
Existing or future goods
(1) The goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or future goods.
(2) There may be a contract for the sale of goods the acquisition of which by the seller depends upon a contingency, which may or may not happen.
(3) Whereby a contract of sale the seller purports to affect a present sale of future goods, the contract operates as an agreement to sell the goods.
Goods perishing before making of contract
Where there is a contract for the sale of specific goods, the contract is void if the goods without the knowledge of the seller have, at the time when the contract was made, perished or become so damaged as no longer to answer to their description in the contract.
The Price
Ascertainment of price
(1) The price in a contract of sale may be fixed by the contract or may be left to be fixed in manner thereby agreed or may be determined by the course of dealing between the parties.
(2) Where the price is not determined in accordance with the foregoing provisions, the buyer shall pay the seller a reasonable price. What is a reasonable price is a question of fact dependent on the circumstances of each particular case.
Agreement to sell at valuation
(1) Where there is an agreement to sell goods on the terms that the price is to be fixed by the valuation of a third party and such third party cannot or does not make such valuation, the agreement is thereby avoided:
Provided that, if the goods or any part thereof have been delivered to and appropriated by the buyer, he shall pay a reasonable price thereof.
(2) Where such third party is prevented from making the valuation by the fault of the seller or buyer, the party not in fault may maintain a suit for damages against the party in fault.
Conditions and Warranties
Stipulation as to time
Unless a different intention appears from the terms of the contract, stipulations as to time of payment are not deemed to be of the essence of a contract of sale. Whether any other stipulation as to time is of the essence of the contract or not depends on the terms of the contract.
Condition and warranty
(1) A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition of a warranty. (2) A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contact as repudiated.
(3) A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to claim for damages but not to a right to reject the goods and treat the contract as repudiated.
(4) Whether a stipulation in contract of sale is a condition or a warranty depends in each case on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract.
When condition to be treated as warranty
(1) Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may waive the condition or elect to treat the breach of the condition as a breach of warranty and not as a ground for treating the contract as repudiated.
(2) Where a contract of sale is not severable and the buyer has accepted the goods are part thereof the breach of any condition to be fulfilled by the seller can only be treated as a breach of warranty and not as a ground for rejecting the goods and treating the contract as repudiated, unless there is a term of the contract, express or implied, to that effect.
(3) Nothing in this section shall affect the case of any condition or warranty fulfillment of which is excused by law by reason of impossibility or otherwise.
Implied undertaking, as to title
In a contract of sale, unless the circumstances of the contract are such as to show a different intention there is –
(a) an implied condition on the part of the seller that, in the case of sale, he has a right to sell the goods and that, in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass;
5. The words and comma “or where the contract is for specific goods the property in which has passed to the buyer,” omitted by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.3 (with effect from the 7th June, 1962).
(b) an implied warranty that the buyer shall have and enjoy quiet possession of the goods;
(c) an implied warranty that the goods shall be free from any charge or encumbrance in favor of any third party not declared or known to the buyer before or at the time when the contract is made.
Sale by description
Where there is a contract for the sale of goods by description there is an implied condition that the goods shall correspond with the description; and, if the sale is by sample as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.
Implied conditions as to quality or fitness
(1) Where the buyer, expressly or by implication, makes known to the seller the particular purpose for there is an implied condition that the goods shall be reasonably fit for purposes:
(2) Where goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be of merchantable quality:
(3) An implied warranty or condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.
(4) An express warranty or condition does not negative a warranty or condition implied by this Act unless inconsistent therewith.
Sale by sample
(1) A contract of sale is a contract for sale by sample where there is a term in the contract, express or implied, to that effect.
(2) In the case of a contract for sale by sample there is an implied condition –
(a) That the bulk shall correspond with the sample in quality;
(b) that the buyer shall have a reasonable opportunity of comparing the bulk with the sample;
(c) that the goods shall be free from any defect, rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.
Transfer of Property as between Seller and Buyer
Goods must be ascertained
Where there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained.
Property passes when intended to pass
(1) Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer when the parties to the contract intend in to the transferred.
(2) For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and the circumstance of the case.
(3) Unless a different intention appears, the rules contained in section 20 to 24 are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer.
Specific goods to be put into a deliverable state
Where there is a contract for the sale of specific goods and the seller is bound to do something of the goods for the purpose of putting them into a deliverable state, the property does not pass until such thing is done and the buyer has notice thereof.
Specific goods in a deliverable state, when the seller has to do anything thereto in order to ascertain price
Where there is a contract for the sale of specific goods in a deliverable state, but the seller is bound to weigh, measure, test or do some other act or thing with reference to the goods for the purpose of ascertaining the price, the property does not pass until such act or thing is done and the buyer has notice thereof.
Sale of unascertained goods and appropriation
(1) Where there is a contract for the sale of unascertained or future goods by description and goods of that description and in a deliverable state are unconditionally appropriated to the contract, Such assent may be express or implied, and may be given either before or after the appropriation is made.
(2) Delivery to carrier. – Where, in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier to other bailed (whether named by the buyer or not) for the purpose of transmission to the buyer, and does not reserve the right to disposal, he is deemed to have unconditionally appropriated the goods to the contract.
Goods sent on approval or “on sale or return
When goods are delivered to the buyer on approval or “on sale or return” of other similar terms, the property therein passes to the buyer –
(a) when he signifies his approval or acceptance to the seller or does any other act adopting the transaction;
(b) if he does not signify his approval or acceptance to the seller but retains the does without giving of rejection, then, if a time has been fixed for the return of the goods, on the expiration of such time, and, if no time has been fixed, on the expiration of a reasonable time.
Reservation of right of disposal
(1) Where there is a contract for the sale of specific goods or where goods are subsequently appropriated to the contract, the seller may, be the terms of the contract or appropriation, reserve the right of disposal of the goods until certain conditions are fulfilled. In such case, notwithstanding the delivery of the goods to a buyer, or to a carrier or other bailee for the purpose of transmission to the buyer, the property in the goods does not pass to the buyer until the conditions imposed by the seller are fulfilled.
(2) Where goods are shipped or are dispatched by railway and are by the bill of lading or by railway receipt deliverable to the order of the seller or his agent the seller is prima facie deemed to reserve the right of disposal.
(3) Where the seller of goods draws on the buyer for the price and transmits the bill of exchange and 8[bill of landing or railway receipt] to the buyer together, to secure acceptance or payment of the bill of exchange, the buyer is bound to return the [bill of lading or railway receipt] if he does not honor the bill of exchange and if he wrongfully retains the 10[bill of lading or railway receipt]the property in the goods does not pass to him.
Transfer of Title
Sale by person not the owner
Subject to the provisions of this Act and of any other law for the time being in force, where goods are sole by a person who is not the owner thereof and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by his conduct precluded from denying the seller’s authority to sell:
7. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 (with effect from the 7th June 1962), for the original subsection (2).
8. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 with effect from the 7th June, 1962), for “bill of lading”
9. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 (with effect from the 7th June, 1962), for “bill of lading”.
10. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 (with effect from the 7th June, 1962), for “bill of lading”.
Provided that, where a mercantile agent is, with the consent of the owner, in possession of the goods or of a document of title to the goods, any sale made by him, when acting in the ordinary course of business of a mercantile agent, shall be as valid as if he were expressly authorized by the owner of the goods to make the same; provided that the buyer acts in good faith and has not at the time of the contract of sale notice that the seller has no authority to sell.
Sale by one of joint owners
If one of several joint owners of goods has the sole possession of the by permission of the co-owners, the property in the goods is transferred to any person who buys them of such joint owner in good faith and has not at the time of the contract of sale notice that the seller has no authority to sell.
Sale by person in possession under voidable contact
When the seller of goods has obtained possession thereof under a contract voidable under section 19 or section 19-A of the Contract Act, 1872, but the contract has not been rescinded at the time of the sale, the buyer acquires a goods title to the goods, provided he buys them in good faith and without notice of the seller’s defect of title.
Seller or buyer in possession after sale
(1) Where a person, having sold goods, continues or is in possession of the goods or of the documents of title to the goods, the delivery or transfer by that person or by mercantile agent acting for him, of the goods or documents of title under any sale, pledge or other disposition thereof to any person receiving the same in good faith and without notice of the previous sale shall have the same effect as if the person making the delivery or transfer were expressly authorised by the owner of the goods to make the same.
(2) Where a person, having bought or agreed to buy goods, obtains, with the consent of the seller, possession of the goods or the documents of title to the goods, the delivery or transfer by that person or by a mercantile agent acting for him, of the goods or documents of title under any sale, pledge or other disposition thereof to any person receiving the same in good faith and without notice of any lien or other right of the original seller in respect of the goods shall have effects as if such lien or right did not exist.
Duties of seller and buyer
It is duty of the seller to deliver the goods of the buyer to accept and pay for them, in accordance with the terms of the contract of sale.
Payment and delivery are concurrent conditions
Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions, that is to say, the seller shall be ready and willing to give possession of the goods to the buyer in exchange for the price, and the buyer shall be ready and willing to pay the price in exchange for possession of the goods.
Delivery
Delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorized to hold them on his behalf.
Effect of part delivery
A delivery of party of goods, in progress of the delivery of the whole, has the same effect, for passing the property in such goods, as a delivery of the whole; but a delivery of part of the goods, with an intention of severing it from the whole, does not operate as a delivery of the remainder.
Buyer to apply for delivery
Apart from any express contract, the seller of goods is not bound to deliver them until the buyer applies for delivery.
Rules as to delivery
(1) Whether it is for the buyer to take possession of the goods or for the seller to send them to the buyer is a question depending in each case on the contract, express or implied, between the parties. Apart from any such contract, goods sold are to be delivered at the place at which they are at the time of the sale, and goods agreed to be sold are to be delivered at the place at which they are at the time of the agreement to sell, or if not them in existence, at the place at which they are manufactured or produced.
(2) Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time.
(3) Where the goods at the time of sale are in the possession of a third person, there is no delivery by seller to buyer unless and until such third person acknowledges to the buyer that he holds the goods on his behalf:
Provided that nothing in this section shall affect the operation of the issue or transfer of any document of title to goods.
(4) Demand or tender of delivery may be treated as ineffectual unless made at a reasonable hour. What is a reasonable hour is a question of fact.
(5) Unless otherwise agreed, the expenses of and incidental to putting the goods into a deliverable state shall be borne by the seller.
Delivery of wrong quantity
(1) Where the seller delivers to the buyer a quantity of goods less than he contracted to sell, the buyer may reject them, but if the buyer accept the goods so delivered he shall pay for them at the contract rate.
(2) Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell, the buyer may accept the goods included in the contract and reject the rest, or 11[if the goods delivered are such that it is difficult or time consuming to separate the quantity contracted for,] he may reject the whole. If the buyer accept the whole of the goods so delivered, he shall pay for them at the contract rate.
(3) Where the seller delivers to the buyer the goods he contracted to sell mixed with goods of a different description not included in the contract, the buyer may accept the goods, which are in accordance with the contract and reject the rest, or may reject the whole.
(4) The provisions of this section are subject to any usage of trade, special agreement or course of dealing between the parties.
Installment delivery-(1) unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installments.
(2) Where there is a contract for the sale of goods to be delivered by stated installments which are to be separately paid for and the seller makes no delivery or defective delivery in respect of one or more installments, or the buyer neglects or reduces to take delivery of or pay for one or more installments, it is a question in each case depending on the terms of the contract and the circumstances of the case, whether the breach of contract is a repudiation of the whole contract, or whether it is a severable breach giving rise to a claim for compensation, but not to a right to treat the whole contract as repudiated.
Delivery to carrier
(1) Where, in pursuance of a contract of sale, the seller is authorized or required to send the goods to the buyer, delivery of the goods to a carrier, whether named by the buyer or not, for the purpose of transmission to the buyer or delivery of the goods to a wharfing for sale custody, is a prima facie deemed to be delivery of the goods to the buyer by board of director(BOD))
(2) Unless otherwise authorized by the buyer, the seller shall make such contract with the carrier on behalf of the buyer as may be reasonable having regard to the nature of the goods and the other circumstances of the case. (3) Unless otherwise agreed, where goods are sent by the seller to the buyer by a route involving sea transit, in circumstances in which it is usual to insure, the seller shall such notice to the buyer as may enable him to insure them during their sea transit, and if the seller fails so to do, the goods shall be deemed to be at his risk during such sea transit.
Risk where goods are delivered at distant place
Where the seller of goods agrees to deliver them at his own risk at a place other than where they, are when sold, the buyer shall, nevertheless, unless otherwise agreed, take any risk of deterioration in the goods necessarily incident to the course of transit.
Buyer is right of examining the goods
(1) Where goods are delivered to the buyer, which he has not previously examined, he is not deemed to have accepted them unless and until he has had a reasonable opportunity of examining them for the purpose of ascertaining whether they are conformity with the contract.
(2) Unless otherwise agreed, when the seller tenders delivery of goods to the buyer, he is bound, on request, to afford the buyer a reasonable opportunity of examining the goods for ascertaining whether they are in conformity with the contract
Buyer not bound to return rejected goods
Unless otherwise agreed, where goods are delivered to the buyer and he refuses to accept them, having the right so to do, he is not bound to return them to the seller, but it is sufficient if he intimates to the seller that he refuses to accept them.
Liability of buyer for neglecting or refusing delivery of goods
When the seller is ready and willing to deliver the goods and requests the buyer to take delivery, and the buyer does not within a reasonable time after such request take delivery of the goods, he is liable to the seller for any loss occasioned by his neglect or refusal to take delivery, and also for a reasonable charge for the care and custody of the goods
RIGHT OF UNPAID SELLER AGAINST THE GOODS
Unpaid seller
(1) The seller of goods is deemed an “unpaid seller” within the meaning of this Act
(a) when the whole of the price has not been paid or tendered;
(b) when a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonor of the instrument or otherwise.
(2) In this Chapter, the term “seller” includes any person who is in the position of a seller, as, for instance, an agent of the seller to whom the bill of landing has been indorsed, or a consignor or agent who has himself paid, or is directly responsible for, the price.
Unpaid seller’s rights
(1) Subject to the provisions of the Act and of any law for the time being in force, notwithstanding that the property in the goods may have passed to the buyer, the unpaid seller of goods, as such, has by implications of law
(a) a lien on the goods for the price while he is in possession of them;
(b) in case of the insolvency of the buyer a right of stopping the goods in transit after he has parted with the possession of them;
(c) a right of re-sale as limited by this Act.
Unpaid Seller’s Lien
Seller’s lien
(1) Subject to the provisions of this Act, the unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price in the following cases, namely:-
(a) Where the goods have been sold without any stipulation as to credit;
(b) Where the goods have been sold on credit, but the term of credit has expired;
(c) Where the buyer becomes insolvent.
(2) The seller may exercise his right of lien notwithstanding that he is in possession of the goods as agent or bailey for the buyer.
Part delivery
Where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder, unless such part delivery has been made under such circumstance as to show an agreement to waive the lien.
Transfer by Buyer and Seller
Effect of sub-sale or pledge by buyer
(1) Subject to the provisions of this Act, the unpaid seller’s right of lien or stoppage in transit is not affected by any sale or other disposition of the goods, which the buyer may have made, unless the seller has assented thereto.
(2) Where the transfer is by way of pledge, the unpaid seller may require the pledge to have the amount secured by the pledge satisfied in the first instance, as far as possible, out of any other goods or securities of the buyer in the hands of the pledge and available against the buyer.
SUITS FOR BREACH OF THE CONTRACT
Suit of price
Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may sue him for the price of the goods.
Damages for non-acceptance
Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue him for damages for non-acceptance.
Damages for non-delivery
Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer, may sue the seller for damages for non-delivery.
Interest by way of damages and special damages
(1) Nothing in this Act shall affect the right of the seller or the buyer to recover interest or special damages in any case where by law interest or special damages may be recoverable, or to recover the money paid where the consideration for the payment of it has failed.
(2) In the absence of a contact to the contract, the Court may award interest at such rate as it thinks fit on the amount of the price
(a) to the seller in a suit by him for the amount of the price – from the date of the tender of the goods or from the date on which the price was payable;
(b) to the buyer in a suit by him for the refund of the price in case of a breach of the contract on the part of the seller – from the date on which the payment was made.
MISCELLANEOUS
Exclusion of implied terms and conditions
Where any right, duty or liability would arise under a contract of sale by implication of law, it may be negative or varied by express agreement or by the course of dealing between the parties, or by usage, if the usage is such as to bind both parties to the contract.
Reasonable time a question of fact
Where in this Act any reference is made to a reasonable time, the question what is a reasonable time is a question of fact.
Auction sale
In the case of a sale by auction –
(1) Where goods are put up for sale in lots, each lot is prima facie deemed to be the subject of a separate contract of sale;
(2) The sale is complete when the auctioneer announces its completion by the fail of the hammer or in other customary manner; and, until such announcement is made, any bidder may retract his bid.
Savings
(1) nothing in this Act or in any repeal affected thereby shall affect or be deemed to affect—
(a) any right, title, interest, obligation or liability already acquired, accrued or incurred before the commencement of this Act, or
(b) Any legal proceedings or remedy in respect of any such right, title, interest, obligation or liability, or
(c) Anything done or suffered before the commencement of this Act
(d) Any enactment relating to partnership not expressly repealed by this Act, or
(e) Any rule of insolvency relating to partnership, or
(f) Any rule of law not inconsistent with this Act.
SUPPLEMENTAL
Mode of giving public notice
A public notice under this Act is given
(a) where it relates to the retirement or expulsion of a partner from a registered firm, or to the dissolution of a registered firm, or to the election to become or not to become a partner in a registered firm by a person attaining majority who was admitted as a minor to the benefits of partnership, by notice to the Registrar of Firms under section 63, and by publication in the 20[official Gazette] and in at least one vernacular newspaper circulating in the district where the firm to which in relates has its place or principal place of business, and
(b) in any other case, by publication in the 20[official Gazette] and in at least one vernacular newspaper circulating in the district where the firm to which it relates has its place or principal place of business.
Apparent authority for buyer
Apparent authority (also called “ostensible authority”) exists where the principal’s words or conduct would lead a reasonable person in the third party’s position to believe that the agent was authorized to act, even if the principal and the purported agent had never discussed such a relationship. For example, where one person appoints a person to a position which carries with it agency-like powers, those who know of the appointment are entitled to assume that there is apparent authority to do the things ordinarily entrusted to one occupying such a position. If a principal creates the impression that an agent is authorized but there is no actual authority, third parties are protected so long as they have acted reasonably. This is sometimes termed “agency by estoppels” or the “doctrine of holding out”, where the principal will be stopped from denying the grant of authority if third parties have changed their positions to their detriment in reliance on the representations made.
Recommendation:
The Sale of Goods Act is an Act to define and amend the law relating to the sale of goods. It also governs the contracts relating to sale of goods. This Act applies to the whole of India except the State of Jammu & Kashmir. It came into force on 1st July 1930. The contracts for sale of goods are subject to the general principles of the law relating to contracts i.e. the Indian Contact Act. A contract for sale of goods has, however, certain specific features such as, transfer of ownership of the goods, delivery of goods rights and duties of the buyer and seller, remedies for breach of contract, conditions and warranties implied under a contract for sale of goods. Actually, the sale of goods act reflects on buyers and sellers condition by doing a lot of responsibility, which are very important to maintain the legal steps. A sale has to be bilateral because the property in goods has to pass from one person to another. The seller and the buyer must be different persons. A person cannot buy his own goods. However, a part-owner may sell to another part-owner. A partnership firm was dissolved and the surplus assets, including some goods, were divided among the partners in specie. The sales-tax officer sought to tax this transaction. Held, this transaction did not amount to sale. The partners were themselves the joint owners of the goods and they could not be both sellers and buyers. Moreover, no money consideration was promised or paid by any partner to the firm as consideration for the goods allotted to him. In a contract of sale, it is the ownership that is transferred (in the case of sale), or agreed to be transferred (in the case of agreement to sell), as against transfer of mere possession or limited interest. A buyer’s primary responsibility is obtaining the highest quality goods at the lowest cost. This usually requires research, writing requests for bids, proposals or quotes, and evaluating information received. An agent who acts within the scope of authority conferred by his or her principal binds the principal in the obligations he or she creates against third parties. There are essentially three kinds of authority recognized in the law: actual authority (whether express or implied), apparent authority, and ratified authority and authority should have to sincere about the right of buyers and sellers.
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