Amendments of Sale of Goods Act

INTRODUCTION

The Sales of Goods Act, 1930 (Act no. 3 of 1930) dated 15th March, 1930 was
enacted with the view to provide for definition and amendment of laws on the matter
of sales of goods. So far the applicability of the provisions of the Act of 1872 i.e. The
Indian Contract Act, 1872, is concerned, the provisions which are inconsistent with
the provisions of this Act, are applicable to contracts of sale of goods. Similarly, the
provision of this Act of 1930 are extended to the entire India, however, the State of
Jammu and Kashmir is exempted from their applicability.

THE AMENDMENTS

Contract of sale of goods

It is defined that the contract of sale of goods is one where the seller of the goods transfers
the property in the goods to the buyer for certain price as consideration. Similarly, the
contract of sale can be either absolute or conditional. When the property is the goods
transferred by seller to buyer under a contract, it is called sale. However, when such
property is transferred on future date under the term or condition of the contract then it is
called agreement to sell as per section 4 of the Act. Such contract of sale is to be made by
offer and acceptance for selling or purchasing a goods for consideration i.e. price. There
may be immediate delivery and payment or delivery and payment in certain instalments.
Such contracts may be either in writing or oral or even there can be implied contract. The
subject matter, i.e. goods in the contract of sale can be either already existing goods or even
future goods i.e. the goods not in the existence at the time of making of contract. If any
goods which is perishable in nature and in respect of which the contract of sale is made,
such contract will be void even though the seller was not having knowledge to that effect.
Similarly, if any agreement to sell is entered into regarding selling of goods perishable in
nature, and thereafter if the goods became damaged or perished without anyone’s fault, then
such agreement should be avoided as per section 8 of the Act. The buyer is responsible to
pay the price so fixed in the terms of the contract of sale and if such price is not so fixed,
then a reasonable price is to be paid by the buyer, depending upon the circumstances of the
case.

Conditions and Warranty

The conditions and warranty provided under the contract of sale is defined under
section 12, where it is provided that, the condition and warranty are attached to the
main purpose of the contract, however, in case of breach of condition, a contract can
be repudiated but in case of breach of warranty, the contract cannot be repudiated,
though person aggrieved can claim damages but cannot reject the goods.

Transferred of Property

Section 18 of the Act says that if there is contract in respect unascertained goods,
then the property in the goods should not be transferred to the buyer without there is
sanction from buyer. So far as the passing of property in the goods is concerned,
section 19 says that, it is to transfer to the buyer as per the intention of the parties, if
the goods are specific or ascertained goods. If such goods are in deliverable state,
then property in the goods transfers at the time of making of contract. And if the
goods are not in deliverable state and the seller has to do something to get the
goods into deliverable state, then such property is to pass after doing that thing to
bring that goods in deliverable state. Other provisions under this Act deals with
similar effects of the contracts of sale, delivery of goods, etc. Moreover, the section
27 is important so far as it is concerned with the sale of goods by the person other
than owner thereof. In such situations the buyer of the goods not acquiring the better
title until authorizes such transaction. Similarly, the sale of jointly owned goods by
the anyone of such joint owners in sole possession of them, is validitate under
section 28, on the condition that the other co-owners should have given permission
and the buyer should have purchased the goods in good faith without having noticed
to the fact of no authority of the seller. Further, if there is sale of goods by the seller
who got that goods under voidable contract, the contract is not void if the buyer
purchases such goods without having knowledge thereof.

Performance of Contract of Sale of Goods

The Act makes provisions as to performance of contract of sale of goods. The seller and
buyer are put in under the obligations to deliver and accept the goods and pay for them,
respectively. The Act has made the payment and delivery as the most important conditions
in the contract of sale, however, the contract under terms may provide for any contrary
effect. The provisions regarding delivery or different types thereof, are given under
subsequent provision.

An Unpaid Seller

This deals with certain rights of the seller who was not paid against the goods sold
by him. An unpaid seller can have right to lien on the goods if the goods are in his
possession and right to stopping the goods in transit in case of the insolvency of the
buyer and right to resale under the provision of this Act. Chapter 6 is important so far
as it is connected with provision on breach of contract. Section 55 speaks for suit for
price recovery. Even suits for non-accepting the delivery or non-making of delivery
can be brought. The provision of specific relief Act, 1877 for the specific performance
are applicable. Section 59 deals with breach of warranty and other provision are
connected with similar object. The last chapter i.e. Chapter 7 of the Act makes
miscellaneous provisions. Provision regarding auction sale are contained under
section 64 of the Act. Section 64A provides for addition of increased or decreased to
tax, in the contract of sale.

Suits for Breach of the Contract

Suit for price.- (1) 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.
(2) Where under a contract of sale the price is payable on a day certain irrespective of
delivery and the buyer wrongfully neglects or refuses to pay such price, the seller may sue
him for the price although the property in the goods has not passed and the goods have not
been appropriated to the contract.

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.

Specific performance.- Subject to the provisions of the Specific Relief Act, 1877, in any suit
for breach of contract to deliver specific or ascertained goods, the Court may, if it thinks fit,
one the application of the plaintiff, by its decree direct that the contract shall be performed
specifically, without giving the defendant the option of retaining the goods on payment of
damages. The decree may be unconditional, or upon such terms and conditions as to
damages, payment of the price or otherwise, as the Court may deem just, and the application
of the plaintiff may be made at any time before the decree.

Remedy for breach of warranty- (1) Where there is a breach of warranty by the seller, or
where the buyer elects or is compelled to treat any breach of a condition on the part of the
seller as a breach of warranty, the buyer is not by reason only of such breach of warranty
entitled to reject the goods; but he may-

(a) Set up against the seller the breach of warranty in diminution or extinction of the price; or

(b) Sue the seller for damages for breach of warranty.

(2) The fact that a buyer has set up a breach of warranty in diminution or extinction of the
price does not prevent him from suing for the same breach of warranty if he has suffered
further damage.

Repudiation of contract before due date.- Where either party to a contract of sale
repudiates the contract before the date of delivery, the other may either treat the contracts as
subsisting and wait till the date of delivery, or he may treat the contract as rescinded and use
for damages for the breach.
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 whereby 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 contract to the contrary, the Court may award interest at such rate a it
think fit one 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 a case of a breach of the
contract on the part of the seller- from the date on which the payment was made.