Q1 . What is sale of goods act?

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

Q. What all are essentials of contract of sale of goods act?

A. Following are the essentials of sale of goods act:-

  1. There must be at least 2 parties
  2. Subject matter of contract must be goods.
  3. The consideration must be paid or promised to be paid
  4. Transfer of goods from seller to buyer
  5. It must be absolute or conditional
  6. All other essentials of valid contract must be there

Q2. What all are included in word “goods” under contract of sale of goods act?

A. Every kind of  movable property, including  stock and shares, growing crops, grass and things attached to or that forms part of the land which are agreed to be severed before sale or under the contact of sale. It does not include actionable claim and money

Q3. What are the types of goods?

A. There are following types of goods-

  1. Existing goods- These are the types of goods which are in existence at the time of the sale.
  2. Specific Goods-It means goods identified and agreed upon at the time the contract of sale has been made
  3. Future Goods- These are goods which are manufactured/produced/acquired by the seller.

Q4. What is the difference between sale and agreement to sell?

 A. Sale is the executed contract whereby both parties ( buyer and seller ) enters into contract. In sale ownership passes immediately at the time when contract is made. In sale buyer becomes owner of the goods or services immediately whereas in agreement to sale transfer of ownership occurs in future and transfer is subject to some conditions and the seller remains the owner until the  agreement is not converted into sale.It is an executory contract which is to be performed in future.

Q5. What is perishing of goods under sales of goods Act?

A.Goods  which are destroyed or so damaged that it becomes no longer fit the contract description.

Q6. What will happen if my goods are perished after agreement to sale?

A.When there is an agreement to sell specific goods, and thereafter,the goods

without any fault of either party perish before ,the risk passes to the buyer, and therefore,

agreement is thereby avoided. This provision applies only to sale of specific goods.

And in case the sale is of unascertained goods, the perishing of the whole quantity of such

goods in the possession of the seller will not relieve him of his obligation to

deliver.

Q7. What is meant by caveat emptor? Is there any exception to caveat emptor?

A. The caveat emptor is a Latin term which means ‘buyer beware’.This means that buyer of the goods and services must be cautious before buying it.Further, the buyer has to make reasonable examination of goods for satisfy himself.

Exception to caveat emptor:-

  1. Where the false representation has been made by the seller and the buyer has relied on it.
  2. Where the defect has been actively concealed by the seller because of which the defect is not visible to the buyer even after reasonable examination.
  3. When the buyer, relied  upon the skill and judgement of the seller and when he has expressly or implicitly communicated to him the purpose for which the goods are required.
  4. When goods are bought by description from a seller who deals in goods of that description.

Q8. Who is an unpaid seller?

A.A,seller is deemed to be an unpaid seller, when: - Whole of the price has not been paid or tendered and in such circumstance, seller had an immediate right of action for the price.

 - bill of exchange or other negotiable instrument was given as payment, but it has been dishonored, unless this payment was an absolute and not a conditional payment.

Q9. What all are the rights I have as an unpaid seller?

A. These all are rights of an unpaid seller:-

  1. Right of lien or retention.
  2. Right of stoppage in transit.
  3.  Right of resale.
  4.  Right to withhold delivery.