Group J1

Abinav Sivaraman S
Anshul Aggarwal
Deepika Vij
Indudhara B
Kopal Bajaj

BUSINESS LAW
CLASSIFICATION OF GOODS

 ExistingGoods: Goods owned or possessed by the seller at the time

of making the contract of sale.

Existing goods may be:

• Specific goods
• Ascertained goods
• Unascertained (generic) goods

 Future Goods: Goods to be produced or manufactured or acquired by the

seller after the making of the contract of sale.

 Contingent Goods: Goods, the acquisition of which by the seller depends

upon an uncertain contingency.
DOCTRINE OF CAVEAT EMPTOR
 It says: It is the buyer’s duty to thoroughly examine
the goods which he is going to purchase. If goods
turn out to be defective or do not suit his purpose,
he has no one to blame but himself. The seller has
no obligation to disclose the defects in the goods.
 It applies to the purchase of specific goods
 It basically cautions the buyer to beware and more
careful when he depends solely on his own skill and
judgment.
EXCEPTIONS TO THE RULE OF CAVEAT
EMPTOR
 Fitness for buyer’s purpose
 Condition as to merchantability
 Good sold by sample as well as description
 Goods sold by sample
 Condition as to quality or fitness
 Where consent of buyer has been obtained by fraud or
where seller knowingly conceals defect not
discoverable on reasonable examination
 Misrepresentation by seller
 Thank you!