Contract of sale of goods

Contract of sale of goods: 

Contract of sale of goods Co-relation between economic system and contract of sale of goods. Socialist economic system and contract of sale of goods. Capitalist economic system and contract of sale of goods. Mixed economic system. 12/17/2011 Sale of Goods Contract 1

History: 

History Chapter VII ,Ss 76 to 123 of Indian Contract Act, dealt with the contract of Sale of Goods. Ss. 76 to 123 of Indian Contract Act 1872 were repealed to pass Indian Sale of Goods Act 1930. It was substantially based on the Sale of Goods Act (English)1893 which is replaced now by the Sale of Goods Act(English) 1979. Amendment Act of 1963 dropped ‘Indian’ and now it is called Sale of goods Act 1930. The Act is not exhaustic in nature. It has 66 Sections. 12/17/2011 Sale of Goods Contract 2

Essentials of contract of sale of goods: 

Essentials of contract of sale of goods Two or more Competent parties. Valid offer( sell or buy) and Valid acceptance. Consent and free consent. Consideration :Price S.2(10), Transfer of ownership of goods, or Agreement to transfer ownership in goods. Subject matter of contract: Transfer of ownership in goods S.2(7). Agreement to transfer of ownership in goods. 12/17/2011 Sale of Goods Contract 3

Instructions for Projects and CRE: 

Instructions for Projects and CRE Last date of submission of projects: November 12(Saturday). Each group shall submit research cards duly signed and numbered disclosing the individual number and total number. Sub bundles of cards may be made in accordance with classification of data. Two copies of the project report duly bound is to be submitted. No projects shall be accepted after the due date. Presentation starts with effect from November 15 (Tuesday) in sequential order at least two groups each day. CRE to be continued on due days or as per change made CRE Committee. CRE committee shall be awarded graded certificates for their work. 12/17/2011 Sale of Goods Contract 4

Goods: 

Goods Definition of ‘Goods’: S.2(7). Not goods. Money: Indian currency only. Actionable claims. Defined in TPA 1882 and its transfer is governed by its Ss.130 to 137. Kinds of goods: Present goods and future goods. Specific goods and non-specific goods. Ascertained goods and unascertained goods: Ascertainment is method making the goods specific. Goods in “deliverable state” and “goods not in deliverable state”. 12/17/2011 Sale of Goods Contract 5

Two kinds of contracts of sale of goods. S. 4:: 

Two kinds of contracts of sale of goods. S. 4: Point of time of making the contract and point of time of passing of property in goods: Immediate passing of property: Sale ( a) Goods to be present and ascertained. (b) Goods can not be future and if present unascertained. Mediate passing of property: Agreement to sell. (a) Goods may be of any kind and type. 12/17/2011 Sale of Goods Contract 6

Sale and agreement to sell: 

Sale and agreement to sell Sale. Jus in rem is created. Risk with buyer. Can not property to even to second bonafide buyer. If buyer becomes insolvent seller has to deliver the goods. Suit for price. Agreement to sell. Jus in personum is created. Risk still with seller. Can pass property to bonafide second buyer. If buyer becomes insolvent the seller need not deliver the goods. Remedy is suit for damages. 12/17/2011 Sale of Goods Contract 7

Contract of sale and contract of work and labour: 

Contract of sale and contract of work and labour No infallible universal test. Whether the contract is primarily for transfer of property in goods and work and service is incidental. All contracts where there is no transfer of property in goods are service contracts. 12/17/2011 Sale of Goods Contract 8

Contract of sale of goods and bailment.: 

Contract of sale of goods and bailment. Contract of sale of goods Purpose of contract. Parties nomenclature. Risk. Consideration. Nature of consideration. Contract of bailment. Purpose of contract. Parties nomenclature. Risk(See S.151) Consideration .? Nature of consideration ? 12/17/2011 Sale of Goods Contract 9

Extra-ordinary transactions deemed as Sale: 

Extra-ordinary transactions deemed as Sale Statutory transactions. Transactions under Article 366, clause ( 29-A) of Constitution of India for tax purposes. 12/17/2011 Sale of Goods Contract 10

Formalities in contract making and other issues. Ss.5to8.: 

Formalities in contract making and other issues. Ss.5to8. How contract of Sale is made: S. 5. Subject matter may be present or future goods.S.6 Sale of Goods of future goods shall be ‘agreement to sell.S.6. Goods perishing before Sale but after agreement to Sell. Agreement is voided.S.8. (See also S.56 of Indian Contract Act) 12/17/2011 Sale of Goods Contract 11

Questions as to passing of property: 

Questions as to passing of property When property passes from seller to the buyer. Sale. Agreement to sell. Who can pass the property. Owner of goods. Person not owner of goods. What passes when property passes. Property rights. Property risks. 12/17/2011 Sale of Goods Contract 12

Point of time of passing of property in goods as per intention of parties: 

Point of time of passing of property in goods as per intention of parties Intention expressed in the contract. If it is not expressed in the contract than, Intention is implied from the stipulations of contract. Implied from the contract in accordance with the provisions of Chapter III (Sections 18 to26) specially the ascertainment and deliverable state rule . If it can not be implied as well by the rules of Chapter III than agreement shall be void under section 29 of Indian Contract Act. 12/17/2011 Sale of Goods Contract 13

Intention rule of passing of property: 

Intention rule of passing of property Intention rule subject to the following regulations with respect to “SALE”. Goods to present ,specific and ascertained. Goods can not be future, non-specific, and unascertained. Goods must be in a deliverable state. Sale independent of the point of time of payment of price or delivery of possession of goods. Passing of property is unconditional. 12/17/2011 Sale of Goods Contract 14

Agreement to sell: 

Agreement to sell Property passes from seller to buyer when ‘agreement to sell’ becomes a ‘sale’. Goods may be of any kind, such as: Present goods. Future goods. Ascertained goods. Unascertained goods. Goods in any state: Deliverable and non-deliverable state. 12/17/2011 Sale of Goods Contract 15

Price S.2(10): 

Price S.2(10) Price is the money consideration in every contract of sale of goods May be contract price or Agreed evaluation formulae price or Evaluation agreed to done by third party. S.10? Course of dealing price or Reasonable price. 12/17/2011 Sale of Goods Contract 16

Price: 

Price Payment of price is a Condition or warranty? Existence: Essential fundamental. Payment: Condition. Stipulation as to the time of payment of price ? Stipulation as to the mode of payment of price ? Stipulation place of payment of price? 12/17/2011 Sale of Goods Contract 17

Contract contents: Stipulations: 

Contract contents: Stipulations Stipulations can be of two kinds: Stipulations. Conditions: Repudiation and Damages. Warranties. Damages only. Non stipulation. Conditions precedent to contract formation: No contract formation . Not conditions precedent: No effect on contract formation. 12/17/2011 Sale of Goods Contract 18

Contract contents: Stipulations: 

Contract contents: Stipulations Price and payment mode/method/schedule. Goods:Quantity,quality,deliverale state , place of delivery. Any other stipulations 12/17/2011 Sale of Goods Contract 19

Conditions and warranties: Introduction: 

Conditions and warranties: Introduction Contract consists of terms defining legal relation with reference to the purpose / purposes, between the contracting parties . Terms which is the essence of the contract( main purpose). Conditions. Terms which is not the essence of the contract( collateral purpose). Warranties. What is the essence of the contract.? Essence of contract is the parties’ relative purpose-interest reflected in the construction of stipulations of contract. 12/17/2011 Sale of Goods Contract 20

Construction of stipulations: Objective theory: 

Construction of stipulations: Objective theory Contract of Sale of goods is made of stipulations, which may be classified in to two categories on the basis of the principle of objective intended purpose of the parties: Conditions (main purpose)and Express conditions. Implied conditions. Warranties (collateral purpose). Express warranties. Implied warranties. 12/17/2011 Sale of Goods Contract 21

Conditions and Warranties:Ss.11 to 17: 

Conditions and Warranties:Ss.11 to 17 Categories of conditions and warranties: Express conditions : Choice of parties. Kinds ,quantity and quality etc. Numbers. Implied conditions and warranties: Conditions implied by the Sale of Goods Act,1930. Contextual and Fixed. Purpose of Conditions and Warranties: Condition: To realise the main purpose. Warranties: To realise the collateral purpose. Legal consequences of classification: Remedies 12/17/2011 Sale of Goods Contract 22

Condition Vs. Warranty: 

Condition Vs. Warranty Purpose: Main: Condition.(Time of payment.S.11) Collateral: Warranty. Purpose main or collateral: Objective construction of parties intentions in case express conditions and warranties. Remedy in case of breach: Condition: Repudiation of contract, or treat it as the breach of warranty. Warranty: Damages. Aggrieved party may treat the breach of condition as breach of warranty but not vice-versa. 12/17/2011 Sale of Goods Contract 23

Failures of contract.: 

Failures of contract. Three kinds of failures: Failure of contract independent of failure of conditions and warranties(Refusal to perform): Damages. Failure of condition: May or may not lead to failure of contract :Repudiation and damages. Failure of warranty: Shall not lead to the failure of contract: No repudiation only damages. 12/17/2011 Sale of Goods Contract 24

Condition may be treated as warranty. Section 13.: 

Condition may be treated as warranty. Section 13. Waiver: Express waiver. Implied waiver. Acceptance. Acceptance of an installment of goods. Dealing with goods as owner. Section 56 applicable for excuse of conditions and warranties . 12/17/2011 Sale of Goods Contract 25

Implied conditions.: 

Implied conditions. Implied condition as to title. S 14 In case of sale: Seller is the owner at the time of contract. In case of agreement to sell: Seller shall be owner when ‘agreement to sell’ becomes ‘sale’. Rawland Vs.Divall (1923) 2KB 500. Stolen car case. Sale by description. Two conditions.S.15 Reasonable time for inspection to answer the goods to the description. Bulk of goods to answer the description. Goods must be of mercantile quality.(S 16.2) Varley Vs.Whipp (1900) 1QB 513.Described to be new reaping machine and has cut only 50 Acres but in fact too old and mended. 12/17/2011 Sale of Goods Contract 26

Continued..: 

Continued.. Sale by sample and description.S.15: Implied conditions are as follows: Reasonable time to compare sample with the bulk. Reasonable time to compare the description with the bulk. The bulk must answer the sample as well as the description. Goods must be of mercantile quality: Grant Vs. Australian Knitting Mills (1936) AC 85 : Undergarment case, Priest Vs. Last 1903(2) KB 148 : Hot water bottle case. If the sample’s description do not match the sample? 12/17/2011 Sale of Goods Contract 27

Continued..: 

Continued.. Sale by sample .S.17. Reasonable time for comparing the sample with the bulk. Sample must answer Bulk the. Goods must be of mercantile quality. Implied condition as to quality or fitness to the purpose. Buyer expressly or impliedly makes his particular purpose known to the seller. Buyer relies on the on the skill and judgment of seller as to the fitness of goods for the purpose. Goods are of the description seller sells in the course of his business. Goods are of mercantile quality. 12/17/2011 Sale of Goods Contract 28

Continued..: 

Continued.. Implied condition as to quality or fitness for particular purpose may be annexed by the usage of the trade.S.16.3. Sea damage to medicines.? 12/17/2011 Sale of Goods Contract 29

Implied Warranties.S.14: 

Implied Warranties.S.14 To enjoy quiet possession. Rowland Vs.Divall,1923 (2)KB 500:No application of Caveat Emptor. (Interference with the right of ownership) Goods free from encumbrances. Pledge free. ( Increases the cost price of the bargain) 12/17/2011 Sale of Goods Contract 30

Passing the property in the goods: Intention rule (Ss.: 

Passing the property in the goods: Intention rule (Ss. There are five sequential of rules: Goods must be ascertained for passing of property. (section 18) Express intention rule in the stipulations of contract. (Section 19.) Implied intention from the stipulations of contract. Implied by the special rules: Implied or presumptive intention rules, contained in the Sale of Goods Act. (Ss.20 to 25.) If intention is not determinable the agreement is void. (S.29 Indian Contract Act) 12/17/2011 Sale of Goods Contract 31

Rules of intention of passing the property in the Goods. Ss 20 to 25, based on common law: 

Rules of intention of passing the property in the Goods. Ss 20 to 25, based on common law Unconditional contract for specific goods in a deliverable state.S.20 Specific goods to be put into a deliverable state.S.21. Specific goods in a deliverable state, when the seller has to do anything thereto in order to ascertain the price.S.22 Sale of unascertained goods and unconditional appropriation of (attaching) goods to contract. S. 23. Goods sent on approval or on sale or return. S.24 Reservation of right of disposal.S.25. Sale may or may not be concluded at the time of conclusion of ‘contract of sale of goods’. 12/17/2011 Sale of Goods Contract 32

Concepts relationship: 

Concepts relationship Property passes in specific goods only.? Unascertained goods. Ascertainment of goods: Seller and buyers mutual process of identification of goods to be appropriated to the contract. Specific goods. Goods in deliverable state. 12/17/2011 Sale of Goods Contract 33

Specific goods in a deliverable state. S.20.: 

Specific goods in a deliverable state. S.20. No conditional condition for passing the property. Of specific goods. In deliverable state. Property passes the moment the contract is made. 12/17/2011 Sale of Goods Contract 34

Specific goods to be put in a deliverable state S.21: 

Specific goods to be put in a deliverable state S.21 Contract for sale of specific goods. Not in a deliverable state. The moment the goods are put in a deliverable state, and Buyer has the notice thereof ,the property passes from seller to buyer. 12/17/2011 Sale of Goods Contract 35

Specific goods in a deliverable state, when the seller has to do anything in order to ascertain the price.S.22: 

Specific goods in a deliverable state, when the seller has to do anything in order to ascertain the price.S.22 Contract for sale of specific goods in a deliverable state. Seller is bound to measure,weigh,or test the goods or to some other act with reference to the goods. Property passes when the same has been done. The buyer has the notice thereof. 12/17/2011 Sale of Goods Contract 36

Sale of unascertained goods by appropriation:S.23 : 

Sale of unascertained goods by appropriation:S.23 Sale by description of unascertained goods or future goods. Goods of that description are in a deliverable state. Are unconditionally appropriated to the contract either by seller or by the buyer with consent(expressed or implied) of buyer or seller. The property passes the on the appropriation of the goods to the contract. (Appropriation of the goods with the consent of the other party to the contract is the process of ascertainment of the goods and deemed goods being specific . The appropriation is irrevocable) 12/17/2011 Sale of Goods Contract 37

Section 23 (2): 

Section 23 (2) Delivery to carrier when unconditional appropriation (no condition for passing the property attached with appropriation): Where in pursuance of contract, The sellers delivers the goods to the buyer or To a carrier or Other bailee, (whether named buyer or not), And does not reserve the right of disposal He (seller)is deemed to have unconditionally appropriated the to the contract. 12/17/2011 Sale of Goods Contract 38

Goods sent on approval or “on sale or return”.S.24: 

Goods sent on approval or “on sale or return”.S.24 When buyer signify approval, express or implied. If time has been fixed for approval, on the expiry of time. No time fixed, on the lapse of reasonable period of time. (Approval is a process of ascertainment of the goods.) 12/17/2011 Sale of Goods Contract 39

Reservation of right of disposal by the seller subject to some condition. S. 25: 

Reservation of right of disposal by the seller subject to some condition. S. 25 Sale of specific goods, or, Where the goods are subsequently appropriated to the contract. Reserving the right of disposal by the seller by the terms of contract or appropriation , until the terms are fulfilled. Property does not pass until the fulfillment of the conditions. (Reservation makes the sale conditional precedent. Normally reservation is for price realisation.) 12/17/2011 Sale of Goods Contract 40

Risk and passing of property:S.26: 

Risk and passing of property:S.26 Subject to the contract to the contrary: Risk passes with the passing of property. Provided the delivery is delayed due the fault of Seller or Buyer: the risk remains with the defaulter. The duties of buyer or seller as bailee remain unaffected. 12/17/2011 Sale of Goods Contract 41

Who can pass the property ?: 

Who can pass the property ? General rule: The owner. “ Nemo dat quod non habet”. Exceptional rule: May not be the owner. Sale subject to estoppel. S.27. Sale by mercantile agent( S 2.9) not authorised to sell. S. 27 Sale by one of the joint owner in possession with the permission of other owners. S.28. Sale by a person under voidable contract. S.29. 12/17/2011 Sale of Goods Contract 42

Continued..: 

Continued.. Seller in possession after sale .S.30. Buyer in possession after agreement to sell . S.29. PLEASE NOTE THE IMPORTANCE OF POSSESSION ELEMENT IN THESE PROVISIONS. Locate the emphasis of law to protect the possession. Possession is nine point in law.? 12/17/2011 Sale of Goods Contract 43

Sale subject to estoppel.S.27: 

Sale subject to estoppel.S.27 Seller is not owner. Seller is not expressly authorised to sell. But owner by his conduct precluded from denying the seller’s authority to sell. Full title is passed. 12/17/2011 Sale of Goods Contract 44

Sale by mercantile agent(S.2.9).S.27: 

Sale by mercantile agent(S.2.9).S.27 Sale by mercantile agent. Not authorised to sell. In the possession of goods or title deeds. Sells the goods. Buyer buys in good faith. Buyer receives good title. 12/17/2011 Sale of Goods Contract 45

Sale by the joint owner.S.28.: 

Sale by the joint owner.S.28. Sale by joint owner. Not authorised to sell by other joint owners. Joint owner is in possession with consent of other joint owners. Buyer buys in good faith. Buyer receives good title. 12/17/2011 Sale of Goods Contract 46

Sale by a person in possession under voidable contract:S.29.?: 

Sale by a person in possession under voidable contract:S.29.? Two kinds of voidable contracts: Sale. At the option of seller. Goods to in possession of buyer. At the option of the buyer. Goods to be in the possession of seller. Agreement to sell.? At the option of the seller. Goods to in possession of buyer At the option of the buyer. Goods to be in the possession of seller. Essentials: Seller in possession under voidable contract. Contract has not been rescinded at time of sale. Buyer buys in good faith, without the notice of the defect in the seller’s title. Seller passes good title. 12/17/2011 Sale of Goods Contract 47

Sale by seller in possession after sale.S.30.: 

Sale by seller in possession after sale.S.30. Seller/ or his mercantile agent is in possession of goods or title documents after sale. Sells/pledges without authority from buyer. Second buyer buys or pledgee takes it in good faith. Second buyer/ pledgee receives good title / interest in it. Pledge creates charge on the title of goods. 12/17/2011 Sale of Goods Contract 48

Sale by buyer in possession after an agreement to sell.S.30: 

Sale by buyer in possession after an agreement to sell.S.30 Buyer or his mercantile agent in possession of goods or title documents after agreement to sell. Sells / pledges without authority from the seller. The second buyer buys or pledgee takes the goods in in good faith. The second buyer or pledgee receives good title/ interest. 12/17/2011 Sale of Goods Contract 49

Rights of unpaid seller: 

Rights of unpaid seller Rights against buyer: When breach of contract is due to non payment of price by the buyer. Suit for compensation. Suit for specific performance if possible . Rights against the goods: When buyer becomes insolvent, recovery of full price not possible. Right of lien. Right of stoppage in transit. Right of resale. 12/17/2011 Sale of Goods Contract 50

Rights of unpaid seller. : 

Rights of unpaid seller. Who is unpaid seller? Seller for this purpose includes any person who is in the position of seller. Rights of unpaid seller (notwithstanding that property in goods may have passed to the buyer. Section 46.) Right of lien. Right of stoppage in transit. Right to resell. 12/17/2011 Sale of Goods Contract 51

Unpaid seller and his rights against goods.: 

Unpaid seller and his rights against goods. Unpaid seller defined.S.45 When whole price is not paid or tendered. Paid through negotiable instrument and the same has been dishonored. Goods not sold on credit and the credit period has expired. Even if the goods are sold on credit but buyer become insolvent before credit period expires..?.New Vs. Swain 1828 Danson & Lloyd 193. Unpaid sellers rights against goods.S.46 Right of lien for the price not paid of goods and buyer has become insolvent . Stoppage in transit in case in case buyer has become insolvent. Right of re-sale. 12/17/2011 Sale of Goods Contract ? 52

Right of lien.S.47: 

Right of lien.S.47 Seller is unpaid. Buyer has become insolvent. If seller has made part delivery he may exercise lien on the remainder unless it amount to waiver of the right.S.48 Seller may exercise right of lien notwithstanding that he is in possession of goods as agent or bailee of the buyer. The right of lien is ‘ particular’ for price only not general for any other charges. 12/17/2011 Sale of Goods Contract 53

Termination of right of lien.: 

Termination of right of lien. When seller deliver the goods to the independent carrier or other bailee without reserving the right of disposal. When carrier is not independent .? Agent of the seller, or Agent of the buyer. When the buyer or his agent lawfully obtains the possession of the goods. Waver of right of lien by the seller. Express. Implied. 12/17/2011 Sale of Goods Contract 54

Stoppage in transit.S.50: 

Stoppage in transit.S.50 Seller is unpaid. Buyer has become insolvent. Goods are in transit. Carrier is controlled by the seller.? Carrier is controlled by the buyer.? Carrier is independent. Duration of transit. Goods are delivered to independent contractor to carry but not moving as yet. or Goods are delivered to the carrier and start moving.? 12/17/2011 Sale of Goods Contract 55

Continued..: 

Continued.. Buyer or his agent lawfully takes the possession before it reaches the destination. On reaching destination the carrier acknowledges the to the buyer or his agent that it holds possession on its behalf. If buyer or his agent rejected to take possession. When ship is chartered by the buyer.? Where carrier wrongfully refused to deliver.? Where the part delivery is made.? 12/17/2011 Sale of Goods Contract 56

Continued..: 

Continued .. Buyer may exercise the right of stoppage in transit to exercise the right of lien. How stoppage in transit is effected. By taking actual possession. By serving notice to the actual carrier, or His principal.? Right of stoppage starts right lien ends or right of stoppage ends right of lien starts.? 12/17/2011 Sale of Goods Contract 57

Right to resell:S.54: 

Right to resell:S.54 General rules Right of lien or stoppage in transit does not rescind the contract. Right to resell rescind the contract of sale. Right to resell gives full title to the buyer. Right to resell, notice to the buyer: Implications Perishable goods. Non-perishable goods. If right of resale reserved subject to default of buyer. 12/17/2011 Sale of Goods Contract 58

Effect of sub-sale or pledge:S.53: 

Effect of sub-sale or pledge:S.53 General rule: Unpaid seller right of lien or stoppage in transit is not affected by sub-sale or pledge. Special rule: Documents of title are transferred to the buyer lawfully . And the subsequent buyer/ pledgee is bonafide, for consideration. Than the rights of unpaid seller are defeated. In case of pledge the unpaid seller has the right to ask the pledgee to proceed against the other goods of the pledger if available to the pledgee in the contract of pledge. 12/17/2011 Sale of Goods Contract 59

Drafting exercises(two pages each): One question:10 marks: 

Drafting exercises(two pages each): One question:10 marks Contract of Guarantee: Loan contract. Contract of bailment: Car repair contract. Contract of sale of goods: Sale of truck load of apples. 5 conditions (2 for seller,3 for buyer.) 2 warranties. Contract of partnership: Lawyers firm. 12/17/2011 Sale of Goods Contract 60

Contract of Guarantee: loan contract: 

Contract of Guarantee: loan contract Essential clauses. Formal clauses. 12/17/2011 Sale of Goods Contract 61

Contract of bailment: Car repair: 

Contract of bailment: Car repair Essential clauses. Formal clauses. 12/17/2011 Sale of Goods Contract 62

Discharge of contract of sale of goods: 

Discharge of contract of sale of goods Discharge by breach. Full breach/anticipatory breach Refuse to perform by seller at all. Refuse to perform by buyer at all. Partial breach/anticipatory breach or partial performance. Breach of condition/s by seller/ buyer. Breach of warranties by seller/buyer. Discharge by performing the contract. Full performance. Partial performance. Partial performance of condition/s by seller/buyer. Partial performance of warranty/s by seller/buyer. 12/17/2011 Sale of Goods Contract 63

Performance of contract of sale of good: 

Performance of contract of sale of good Seller Duty to deliver as per... Delivery/payment concu.. How delivery to be made ? Actual delivery. Symbolic delivery. Delivery a voluntary transfer of possession. Seller in possession. Buyer in possession. Third party in possession. Buyer Duty to accept delivery. Payment/delivery concu.. Buyer to ask for delivery. Take actual possession. Take symbolic possession. Voluntary taking of possession by buyer. Actual/symbolic. Symbolic. Actual/symbolic. 12/17/2011 Sale of Goods Contract 64

Delivery of goods: Rules: 

Delivery of goods: Rules Delivery of goods.? Contract rules: Statutory and mixed rules: In the absence of contract rules, goods sold to be delivered at the place they are at the time of contract. Sale. Agreement to sell. Goods in existence at the time of contract. Goods not in existence at the time of contract. Where seller is send the goods to buyer but no time is mentioned must sent with in reasonable time. Where the goods are in possession of third party, no delivery by the seller unless buyer acknowledges to the buyer that he holds goods for him. Continued….. 12/17/2011 Sale of Goods Contract 65

Continued…: 

Continued… Demand and tender of delivery to be at reasonable hour , which is matter of fact. Unless otherwise agreed, expenses/ incidental charges to be born by the seller to put goods in deliverable state . 12/17/2011 Sale of Goods Contract 66

Remedies in case of breach.: 

Remedies in case of breach. Suit for compensation.S.73 Suit for specific performance. 12/17/2011 Sale of Goods Contract 67