logging in or signing up Sale of Goods Law ( Contract II) tabrezahmad Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1356 Category: Business & Fin.. License: All Rights Reserved Like it (1) Dislike it (0) Added: April 05, 2010 This Presentation is Public Favorites: 1 Presentation Description These slides are the lectures delivered by Dr. Tabrez Ahmad on Sale of Goods Law in KIIT Law School, KIIT University Bhubaneswar, India. Comments Posting comment... By: vikramshri845 (17 month(s) ago) please send me this ppt sir at vikramshri845@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: Pooja.ahuja09 (22 month(s) ago) please help me download this Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Sale of Goods : Sale of Goods Dr. Tabrez Ahmad Associate Professor of Law www.site.technolexindia.com tabrezahmad7@gmail.com http://technolexindia.blogspot.com Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 1 Slide 2: Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 2 Agenda : Agenda What is contract of sale? What is agreement to sell? What is the subject matter of sale? Implied and Expressed Conditions and Warranties Fitness and Merchantable quality Sale by description Sale by sample Law of Caveat Emptor and Caveat Vendittor Passing of property and risk Nemo dat quod non habet Remedies of unpaid seller Case Studies Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 3 Contract of sale : Contract of sale Most common of all the commercial contracts Came into force on 1st JULY,1930. Are subject to the general legal principles applicable to all the contracts such as, offer & its acceptance, consideration. Some special features Monday, April 05, 2010 4 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, ESSENTIALS OF VALID SALE CONTRACT : ESSENTIALS OF VALID SALE CONTRACT Two parties: There must be 2 distinct parties i.e., a buyer and a seller Goods: Goods which form the subject matter of the contract of sale must be movable. Price: The consideration for the contract of sale, called price, must be money Essential elements of a valid contract: A contract is made by an offer to buy or sell goods for a price and the acceptance of such offer. Monday, April 05, 2010 5 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE AND AGREEMENT TO SELL : SALE AND AGREEMENT TO SELL Property in the goods is transferred from the seller to the buyer- Sale Transfer of the property in the goods is to take place at some future date or after fulfillment of some condition- Agreement to sell Monday, April 05, 2010 6 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE AND AGREEMENT TO SELL : SALE AND AGREEMENT TO SELL Sale Agreement to sell Ownership is with the buyer Executed contract Sue for price, in case of breach Goods lost by accident then loss falls on the buyer. Ownership is with the seller Executory contract Sue for damages only, in case of breach Goods lost by accident then loss falls on the Seller. Monday, April 05, 2010 7 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CONDITION AND WARRANTY : CONDITION AND WARRANTY Condition Warranty Its is a term in contract which is essential. When condition breaches? Breach of condition can be breach of warranty Its a term in contract which is collateral. When warranty breaches? Breach of warranty cannot be breach of condition. Monday, April 05, 2010 8 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, EXPRESS AND IMPLIED CONDITIONS AND WARRANTIES : EXPRESS AND IMPLIED CONDITIONS AND WARRANTIES Condition or warranty may be expressed Express condition and warranty are expressly provided in the contract. Implied Condition or warranty are provided by the law. Monday, April 05, 2010 9 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, Condition as to title: : Condition as to title: In a contract of sale, unless the situation of the contract are such as to show a different intention, there is an implied condition on part of the seller that— In sale, he has right to sell goods. In agreement to sell, he will have a right to sell at the time when property is to pass. Monday, April 05, 2010 10 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE BY DESCRIPTION : SALE BY DESCRIPTION In sale by description there is an implied condition that the goods shall correspond with description. This means “if you contract to sell peas, you cannot oblige the party to take beans.” Hence if the description of the article tendered is different then the buyer may not buy the goods. Monday, April 05, 2010 11 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE BY DESCRIPTION AND SAMPLE : SALE BY DESCRIPTION AND SAMPLE If the sale is by sample as well as by description, it is not sufficient that the bulk of goods corresponds with the sample, if the goods do not also correspond with the description. This means goods must match with the description and sample. Monday, April 05, 2010 12 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CONDITION AS TO QUALITY OR FITNESS : CONDITION AS TO QUALITY OR FITNESS Normally, in a contract of sale there is no implied condition as to quality or fitness for particular purpose. The buyer must test the goods before he buys them in order to satisfy him self that the goods shall be suitable for him. Monday, April 05, 2010 13 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CONDITION OF MERCHANTABILITY : CONDITION OF MERCHANTABILITY Where goods are bought by description from a seller who deals in goods of that description there is an implied condition that the goods are of merchantable quality. This means goods should be such that they are commercially saleable, as per the description by which they are known in the market at their full value. Monday, April 05, 2010 14 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CONDITION IMPLIED BY CUSTOM : CONDITION IMPLIED BY CUSTOM An implied condition as to quality or fitness for a particular purpose may be annexed by the usage of trade. This means that the goods which are required may be ascertained from the acts and from the nature of description of that article. Monday, April 05, 2010 15 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE BY SAMPLE : SALE BY SAMPLE 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. That bulk shall correspond with the sample in quality, That the buyer shall have a reasonable opportunity of comparing the bulk with the sample. That the goods shall be free from any defects, rendering them unmerchantable. Monday, April 05, 2010 16 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CONDITION AS TO WHOLESOMENESS : CONDITION AS TO WHOLESOMENESS In the case of eatables and provisions, in addition to the implied condition as to merchantability, there is another implied condition that the goods shall be wholesome. Monday, April 05, 2010 17 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, WARRANTY OF QUIET POSSESSION : WARRANTY OF QUIET POSSESSION In a contract of sale, unless there is a contrary intention, there is an implied warranty that the buyer shall have and enjoy quite possession of the goods. If the buyer is in any way disturbed in the enjoyment of the goods in consequence of the seller’s defective title to sell, he can claim damages from the seller. Monday, April 05, 2010 18 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, WARRANTY OF FREEDOM FROM ENCUMBRANCES : WARRANTY OF FREEDOM FROM ENCUMBRANCES In addition to the previous warranty, the buyer is entitled to a further warranty that the goods are not subject to any charge or right in favor of a third party. If the possession is in any way disturbed by reason of the existence of any charge or encumbrances on the goods in favor of any third party, he shall have a right to claim damages for breach of this warranty. Monday, April 05, 2010 19 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, WARRANTY AS TO QUALITY OR FITNESS BY USAGE OF TRADE : WARRANTY AS TO QUALITY OR FITNESS BY USAGE OF TRADE An implied warranty as to quality or fitness for a particular purpose may be annexed by the usage of trade. Monday, April 05, 2010 20 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, WARRANTY TO DISCLOSE DANGEROUS NATURE OF GOODS. : WARRANTY TO DISCLOSE DANGEROUS NATURE OF GOODS. When a person sells goods knowing that the goods are inherently dangerous or they are likely to be dangerous to the buyer and that the buyer is ignorant of the danger, he must warn the buyer of the probable danger, other wise he will be liable in damages. Monday, April 05, 2010 21 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CAVEAT EMPTOR and Its exceptions : CAVEAT EMPTOR and Its exceptions This means “LET THE BUYER BEWARE” i.e., the seller is under no duty to reveal unflattering truths about the goods sold. Fitness for Buyers purpose Therefore, when a person buys some goods, be must examine them thoroughly. If the goods turn out to be defective or do not suit his purpose or he depends upon his own skills and makes a bad decision, he cannot blame the seller. Monday, April 05, 2010 22 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, Sale under Patent or Trade name : Sale under Patent or Trade name Merchantable quality Usage of trade Consent by fraud Monday, April 05, 2010 23 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, WHO IS AN UNPAID SELLER : WHO IS AN UNPAID SELLER A seller of goods is deemed to be an unpaid seller:- When the whole of the price has not been paid or tendered When any negotiable instrument is dishonoured Monday, April 05, 2010 24 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, Slide 25: 25 RULES OF DELIVERY : RULES OF DELIVERY Mode of delivery Delivery and payment con current condition Effects of part delivery Buyer to apply for delivery Place of delivery Time of delivery Goods in possession of a third party Cost of delivery Delivery of wrong quantity Installment deliveries Monday, April 05, 2010 26 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, FREE ON BOARD : FREE ON BOARD Seller’s duties: Buyer’s Duties: To deliver the goods on board the ship named by the buyer Once goods are put on board the ship, they are at the risk of the buyer. The duty of the seller ends when he delivers the goods to the ship at the port of shipment. Arrange for the contract of affreightment Name the ship on which goods are to be delivered. It becomes the duty of the buyer once the goods are on the ship. Monday, April 05, 2010 27 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, COST, INSURANCE, FREIGHT : COST, INSURANCE, FREIGHT Seller’s duty: Make out an invoice of the goods sold. Procure a contract of affreightment. To arrange for an insurance. Buyer’s duty To pay unloading charges, wharf age charges, etc. To pay custom and import duties. Monday, April 05, 2010 28 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, AUCTION SALE : AUCTION SALE A sale by auction is a public sale where different intending buyers try to outbid each other. The goods are ultimately sold to the highest bidder. The auctioneer who sells the goods by the auction is an agent of the seller, i.e. the owner. Monday, April 05, 2010 29 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, RULES OF AUCTION SALE : RULES OF AUCTION SALE Completion of sale:- The sale is complete when the auctioneer announces its completion by the fall of the hammer or in some other customary manner like “one two three” or “going going, gone” Monday, April 05, 2010 30 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, RIGHT OF SELLER TO BID : RIGHT OF SELLER TO BID A right to bid may be reserved expressly by or on behalf of the seller. Where such right is expressly reserved, the seller or any one person on his behalf may bid at the auction. Monday, April 05, 2010 31 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE NOT NOTIFIED SUBJECT TO A RIGHT TO BID : SALE NOT NOTIFIED SUBJECT TO A RIGHT TO BID It is not lawful For the seller to bid himself or to employ any person to bid at such sale. For the auctioneer knowingly to take any bid from the seller or any such person. Any sale against this rule may be treated as fraudulent. Monday, April 05, 2010 32 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, RESERVE PRICE : RESERVE PRICE It is the price below which the auctioneer will not sell. Where the sale is subject to a reserve price, every bid is accepted conditionally on the reserve price being reached. But where the sale is without reserve, the goods will be sold to the highest bidder. Monday, April 05, 2010 33 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, USE OF PRETENDED BIDDING : USE OF PRETENDED BIDDING If the seller makes use of pretended bidding to raise the price, the sale is void able at the option of the buyer. Monday, April 05, 2010 34 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, KNOCK OUT OR AGREEMENT NOT TO BID AGAINST EACH OTHER : KNOCK OUT OR AGREEMENT NOT TO BID AGAINST EACH OTHER Where a group of persons form a combination to prevent competition between themselves at an auction and arrange that only one of them will bid and share anything so obtained among themselves. This is called knock out which is legal. Monday, April 05, 2010 35 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, Sale Under Compulsion : Sale Under Compulsion Board of Trade Tea Board Steel Controller OPEC etc Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 36 Case Studies : Case Studies Indian Steel and Wire Products Ltd. (Appellant) v. State of Madras ( Respondent) AIR 1968 SC 478 State of Madras (Respondent) AIR 1968 Supreme Court 478 Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 37 Slide 38: Orissa Textile Mills Ltd. and Another ( Petitioners) V. Ganesh Das Ramkishun ( Opposite Party) AIR 1961 PAT 107 Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 38 Slide 39: P.S.N.S Ambalavana Chettiar & Co. Ltd. and another ( In both the Appeals), Appellants V. Express Nespapers Ltd. Bombay ( In both the Appeals), Respondent. AIR 1968 SC 741 Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 39 Slide 40: Union of India, (Appellant) V. A.L Ralliaram (Respondent) AIR 1963 SC 1685 Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 40 Do you have any question? : Do you have any question? Monday, April 05, 2010 41 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, Slide 42: Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 42 Thanks You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Sale of Goods Law ( Contract II) tabrezahmad Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1356 Category: Business & Fin.. License: All Rights Reserved Like it (1) Dislike it (0) Added: April 05, 2010 This Presentation is Public Favorites: 1 Presentation Description These slides are the lectures delivered by Dr. Tabrez Ahmad on Sale of Goods Law in KIIT Law School, KIIT University Bhubaneswar, India. Comments Posting comment... By: vikramshri845 (17 month(s) ago) please send me this ppt sir at vikramshri845@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: Pooja.ahuja09 (22 month(s) ago) please help me download this Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Sale of Goods : Sale of Goods Dr. Tabrez Ahmad Associate Professor of Law www.site.technolexindia.com tabrezahmad7@gmail.com http://technolexindia.blogspot.com Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 1 Slide 2: Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 2 Agenda : Agenda What is contract of sale? What is agreement to sell? What is the subject matter of sale? Implied and Expressed Conditions and Warranties Fitness and Merchantable quality Sale by description Sale by sample Law of Caveat Emptor and Caveat Vendittor Passing of property and risk Nemo dat quod non habet Remedies of unpaid seller Case Studies Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 3 Contract of sale : Contract of sale Most common of all the commercial contracts Came into force on 1st JULY,1930. Are subject to the general legal principles applicable to all the contracts such as, offer & its acceptance, consideration. Some special features Monday, April 05, 2010 4 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, ESSENTIALS OF VALID SALE CONTRACT : ESSENTIALS OF VALID SALE CONTRACT Two parties: There must be 2 distinct parties i.e., a buyer and a seller Goods: Goods which form the subject matter of the contract of sale must be movable. Price: The consideration for the contract of sale, called price, must be money Essential elements of a valid contract: A contract is made by an offer to buy or sell goods for a price and the acceptance of such offer. Monday, April 05, 2010 5 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE AND AGREEMENT TO SELL : SALE AND AGREEMENT TO SELL Property in the goods is transferred from the seller to the buyer- Sale Transfer of the property in the goods is to take place at some future date or after fulfillment of some condition- Agreement to sell Monday, April 05, 2010 6 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE AND AGREEMENT TO SELL : SALE AND AGREEMENT TO SELL Sale Agreement to sell Ownership is with the buyer Executed contract Sue for price, in case of breach Goods lost by accident then loss falls on the buyer. Ownership is with the seller Executory contract Sue for damages only, in case of breach Goods lost by accident then loss falls on the Seller. Monday, April 05, 2010 7 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CONDITION AND WARRANTY : CONDITION AND WARRANTY Condition Warranty Its is a term in contract which is essential. When condition breaches? Breach of condition can be breach of warranty Its a term in contract which is collateral. When warranty breaches? Breach of warranty cannot be breach of condition. Monday, April 05, 2010 8 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, EXPRESS AND IMPLIED CONDITIONS AND WARRANTIES : EXPRESS AND IMPLIED CONDITIONS AND WARRANTIES Condition or warranty may be expressed Express condition and warranty are expressly provided in the contract. Implied Condition or warranty are provided by the law. Monday, April 05, 2010 9 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, Condition as to title: : Condition as to title: In a contract of sale, unless the situation of the contract are such as to show a different intention, there is an implied condition on part of the seller that— In sale, he has right to sell goods. In agreement to sell, he will have a right to sell at the time when property is to pass. Monday, April 05, 2010 10 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE BY DESCRIPTION : SALE BY DESCRIPTION In sale by description there is an implied condition that the goods shall correspond with description. This means “if you contract to sell peas, you cannot oblige the party to take beans.” Hence if the description of the article tendered is different then the buyer may not buy the goods. Monday, April 05, 2010 11 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE BY DESCRIPTION AND SAMPLE : SALE BY DESCRIPTION AND SAMPLE If the sale is by sample as well as by description, it is not sufficient that the bulk of goods corresponds with the sample, if the goods do not also correspond with the description. This means goods must match with the description and sample. Monday, April 05, 2010 12 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CONDITION AS TO QUALITY OR FITNESS : CONDITION AS TO QUALITY OR FITNESS Normally, in a contract of sale there is no implied condition as to quality or fitness for particular purpose. The buyer must test the goods before he buys them in order to satisfy him self that the goods shall be suitable for him. Monday, April 05, 2010 13 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CONDITION OF MERCHANTABILITY : CONDITION OF MERCHANTABILITY Where goods are bought by description from a seller who deals in goods of that description there is an implied condition that the goods are of merchantable quality. This means goods should be such that they are commercially saleable, as per the description by which they are known in the market at their full value. Monday, April 05, 2010 14 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CONDITION IMPLIED BY CUSTOM : CONDITION IMPLIED BY CUSTOM An implied condition as to quality or fitness for a particular purpose may be annexed by the usage of trade. This means that the goods which are required may be ascertained from the acts and from the nature of description of that article. Monday, April 05, 2010 15 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE BY SAMPLE : SALE BY SAMPLE 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. That bulk shall correspond with the sample in quality, That the buyer shall have a reasonable opportunity of comparing the bulk with the sample. That the goods shall be free from any defects, rendering them unmerchantable. Monday, April 05, 2010 16 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CONDITION AS TO WHOLESOMENESS : CONDITION AS TO WHOLESOMENESS In the case of eatables and provisions, in addition to the implied condition as to merchantability, there is another implied condition that the goods shall be wholesome. Monday, April 05, 2010 17 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, WARRANTY OF QUIET POSSESSION : WARRANTY OF QUIET POSSESSION In a contract of sale, unless there is a contrary intention, there is an implied warranty that the buyer shall have and enjoy quite possession of the goods. If the buyer is in any way disturbed in the enjoyment of the goods in consequence of the seller’s defective title to sell, he can claim damages from the seller. Monday, April 05, 2010 18 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, WARRANTY OF FREEDOM FROM ENCUMBRANCES : WARRANTY OF FREEDOM FROM ENCUMBRANCES In addition to the previous warranty, the buyer is entitled to a further warranty that the goods are not subject to any charge or right in favor of a third party. If the possession is in any way disturbed by reason of the existence of any charge or encumbrances on the goods in favor of any third party, he shall have a right to claim damages for breach of this warranty. Monday, April 05, 2010 19 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, WARRANTY AS TO QUALITY OR FITNESS BY USAGE OF TRADE : WARRANTY AS TO QUALITY OR FITNESS BY USAGE OF TRADE An implied warranty as to quality or fitness for a particular purpose may be annexed by the usage of trade. Monday, April 05, 2010 20 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, WARRANTY TO DISCLOSE DANGEROUS NATURE OF GOODS. : WARRANTY TO DISCLOSE DANGEROUS NATURE OF GOODS. When a person sells goods knowing that the goods are inherently dangerous or they are likely to be dangerous to the buyer and that the buyer is ignorant of the danger, he must warn the buyer of the probable danger, other wise he will be liable in damages. Monday, April 05, 2010 21 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, CAVEAT EMPTOR and Its exceptions : CAVEAT EMPTOR and Its exceptions This means “LET THE BUYER BEWARE” i.e., the seller is under no duty to reveal unflattering truths about the goods sold. Fitness for Buyers purpose Therefore, when a person buys some goods, be must examine them thoroughly. If the goods turn out to be defective or do not suit his purpose or he depends upon his own skills and makes a bad decision, he cannot blame the seller. Monday, April 05, 2010 22 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, Sale under Patent or Trade name : Sale under Patent or Trade name Merchantable quality Usage of trade Consent by fraud Monday, April 05, 2010 23 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, WHO IS AN UNPAID SELLER : WHO IS AN UNPAID SELLER A seller of goods is deemed to be an unpaid seller:- When the whole of the price has not been paid or tendered When any negotiable instrument is dishonoured Monday, April 05, 2010 24 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, Slide 25: 25 RULES OF DELIVERY : RULES OF DELIVERY Mode of delivery Delivery and payment con current condition Effects of part delivery Buyer to apply for delivery Place of delivery Time of delivery Goods in possession of a third party Cost of delivery Delivery of wrong quantity Installment deliveries Monday, April 05, 2010 26 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, FREE ON BOARD : FREE ON BOARD Seller’s duties: Buyer’s Duties: To deliver the goods on board the ship named by the buyer Once goods are put on board the ship, they are at the risk of the buyer. The duty of the seller ends when he delivers the goods to the ship at the port of shipment. Arrange for the contract of affreightment Name the ship on which goods are to be delivered. It becomes the duty of the buyer once the goods are on the ship. Monday, April 05, 2010 27 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, COST, INSURANCE, FREIGHT : COST, INSURANCE, FREIGHT Seller’s duty: Make out an invoice of the goods sold. Procure a contract of affreightment. To arrange for an insurance. Buyer’s duty To pay unloading charges, wharf age charges, etc. To pay custom and import duties. Monday, April 05, 2010 28 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, AUCTION SALE : AUCTION SALE A sale by auction is a public sale where different intending buyers try to outbid each other. The goods are ultimately sold to the highest bidder. The auctioneer who sells the goods by the auction is an agent of the seller, i.e. the owner. Monday, April 05, 2010 29 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, RULES OF AUCTION SALE : RULES OF AUCTION SALE Completion of sale:- The sale is complete when the auctioneer announces its completion by the fall of the hammer or in some other customary manner like “one two three” or “going going, gone” Monday, April 05, 2010 30 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, RIGHT OF SELLER TO BID : RIGHT OF SELLER TO BID A right to bid may be reserved expressly by or on behalf of the seller. Where such right is expressly reserved, the seller or any one person on his behalf may bid at the auction. Monday, April 05, 2010 31 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, SALE NOT NOTIFIED SUBJECT TO A RIGHT TO BID : SALE NOT NOTIFIED SUBJECT TO A RIGHT TO BID It is not lawful For the seller to bid himself or to employ any person to bid at such sale. For the auctioneer knowingly to take any bid from the seller or any such person. Any sale against this rule may be treated as fraudulent. Monday, April 05, 2010 32 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, RESERVE PRICE : RESERVE PRICE It is the price below which the auctioneer will not sell. Where the sale is subject to a reserve price, every bid is accepted conditionally on the reserve price being reached. But where the sale is without reserve, the goods will be sold to the highest bidder. Monday, April 05, 2010 33 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, USE OF PRETENDED BIDDING : USE OF PRETENDED BIDDING If the seller makes use of pretended bidding to raise the price, the sale is void able at the option of the buyer. Monday, April 05, 2010 34 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, KNOCK OUT OR AGREEMENT NOT TO BID AGAINST EACH OTHER : KNOCK OUT OR AGREEMENT NOT TO BID AGAINST EACH OTHER Where a group of persons form a combination to prevent competition between themselves at an auction and arrange that only one of them will bid and share anything so obtained among themselves. This is called knock out which is legal. Monday, April 05, 2010 35 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, Sale Under Compulsion : Sale Under Compulsion Board of Trade Tea Board Steel Controller OPEC etc Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 36 Case Studies : Case Studies Indian Steel and Wire Products Ltd. (Appellant) v. State of Madras ( Respondent) AIR 1968 SC 478 State of Madras (Respondent) AIR 1968 Supreme Court 478 Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 37 Slide 38: Orissa Textile Mills Ltd. and Another ( Petitioners) V. Ganesh Das Ramkishun ( Opposite Party) AIR 1961 PAT 107 Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 38 Slide 39: P.S.N.S Ambalavana Chettiar & Co. Ltd. and another ( In both the Appeals), Appellants V. Express Nespapers Ltd. Bombay ( In both the Appeals), Respondent. AIR 1968 SC 741 Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 39 Slide 40: Union of India, (Appellant) V. A.L Ralliaram (Respondent) AIR 1963 SC 1685 Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 40 Do you have any question? : Do you have any question? Monday, April 05, 2010 41 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, Slide 42: Monday, April 05, 2010 Dr. Tabrez Ahmad, Blog: http://technolexindia.blogspot.com, 42 Thanks