SYNOPSIS

OF

PROPERTY LAW

TOPIC: PRINCIPLE GOVERNING SALE OF MOVABLE AND IMMOVABLE PROPERTY

UNDER SALE OF GOODS ACT, 1930 AND TRANSFER OF PROPERTY ACT, 1882.

SUBMITTED BY: SYED RENOBA NISAR

ENROLLMENT NO.: GU17R0389 (5TH SEMESTER)

SUBMITTED TO: ASST. PROF. MD ASIF BELAL

GLOCAL LAW SCHOOL

 TITLE:
 “PRINCIPLE GOVERNING SALE OF MOVABLE AND IMMOVALE PROPERTY
UNDER SALES OF GOODS ACT, 1930 AND TRANSFER OF PROPERTY ACT, 1882.”

 OBJECTIVE OF STUDY:
 To discuss the brief description about sales of goods act, movable and immovable
property.
 To analyze the various aspects like essentials, provisions, formalities, obligations, duties
and rights of buyer and seller etc related to sale of property.
 RESEARCH PROBLEM:

The main question to address

 General principles of transfer under Transfer of Property Act.

 Description of sale of goods act, 1930.
 Essentials elements of property transfer under Transfer of Property Act and that of valid
contract under Sales of Goods act.
 Modes of transfer of property under Transfer of Property Act.
 Formalities of contract of sale under Sale of Goods Act.
 Description of sale and contract for sale under Transfer of Property Act.
 Rights and duties of seller and buyer under Transfer of Property Act.
 Obligations of buyer under Sales of Goods Act.

 HYPOTHESIS:

In this research the researcher might discuss the nature of research which covers Sale of
Movable and Immovable property.

Sale simply means buying and selling of goods and services, under Transfer of Property
Act, 1882 the Sale is of immovable property.

The Sales of Goods Act deals with the subject-matter of movable property.
 When dealing with the sale of property or purchase of a house, movable property can be
described as the seller’s personal property which is not affixed to the property, for example
curtains which do not automatically form part of the sale agreement.

Immovable property can be described as the land and all buildings on the land as well as all
permanent fixtures which are included in the sale of the property. These are items which are
glued, cemented or bolted to the property.

 RESEARCH METHODOLOGY:
 Method: the research is descriptive and analytical in nature.
 Sources of data: Secondary and Electronic resources have been used to gather
information about the topic.

Websites, books and articles have been primarily helpful in giving the project a firm structure.

Footnotes have been provided wherever needed to acknowledge the source.

 OVERVIEW:

VEPA P. SARATHI’S, LAW OF TRANSPER OF PROPERTY, 6 TH EDITION,

EBC EXPLORER.

The book states nature, principles, essentials, provisions, modes etc of sale of property. It
explains the theoretical as well as analytical aspects of civil procedure.

Section 54 of the price Transfer of Property Act defines “Sale” as “sale is a transfer of ownership
in exchange for a price paid or promised or part-paid and part-promised.

Sale how made – Such transfer, in case of tangible immovable property of the value of one
hundred rupees and upwards or in the case of revision or other intangible things, can be made
only by registered instrument.

In the case of tangible immovable property of a value less than one hundred rupees, such transfer
may be made either by a registered instrument of by delivery of the property.

Delivery of tangible immovable property takes place when the seller places the buyer or such
person as he directs, in possession of the property.”
  CHAPTER SCHEME:

INTRODUCTION TO RESEARCH METHODOLOGY:

Section 3 of the general clauses act, 1897; Section 2(6) of the Indian Registration Act, 1908
defines the term immovable Property. It includes land, things attached and embedded in the land.

On the other, movable Property includes any corporeal property (right of ownership in material
things) which is not immovable property. It may include furniture, stationery items, etc. The
concept of immovable Property holds greater importance and has elaborately been dealt with
under Indian statutes. The following mentioned are judicially recognized as immovable Property:

1.  Right of way
2.  Right to collect the rent of immovable Property
3.  Right of ferry
4.  mortgagor’s right to redeem the mortgage
5.  The interest of the mortgagee in immovable Property
6.  Right of fishery
7.  Right to collect lac from trees

On the other hand, the following are not judicially recognized as immovable Property:

1. Standing timber
2.  Growing crops
3.  Grass
4.  Royalty
5.  A decree of sale or sale of immovable property on a mortgage
6.  Right of the purchaser to have land registered in the name
7. Right to recover maintenance allowance even though it is charged through immovable
Property
  BRIEF CONTENT:
Transfer of property act
 The transaction relating to immovable properties, e.g., the sale, lease, gifts, etc., are
governed by the Act known as the Transfer of Property Act, 1882.
 Section 54 of the Act defines ‘sale’ as a transfer of ownership in exchange for a price
Paid or promised or part paid and part promised.
 Section 54 also defines ‘contract for sale’ as, “a contract for the sale of immovable
property B a contract that a sale of such property shall take place on terms settled
between the parties,”
 Thus a sale may be preceded by a contract for sale. A contract for sale is merely a
document creating a right to obtain another document namely, a duly executed sale deed.
On the Other hand, a sale of immovable property is a transfer of ownership.
 A sale passes an absolute interest in the property to the purchaser, but a contract for sale
does not of itself create any interest in, or charge upon the property in favour of the
buyer. It does not convey any little to the purchaser.
 A sale must be registered, if it deals with the conveyance of tangible immovable property
of the value of Rs. 100 or more, or a reversion or any intangible things.
 A contract for sale need not be registered at all.

Sales of Goods Act

The Act deals with the subject-matter of movable property. This Act does not deal with the sale
of immovable property.

Contract of the sale is an agreement between the buyer and the seller intending to exchange
property. Section 4(1) defines the contract of the sale as – a contract of the sale of goods is a
contract whereby the seller transfers or agrees to transfer the property in goods to a buyer for a
price.

In other words, the essentials to constitute a contract of the sale are as follows:

1. Two parties
There must be 2 distinct parties i.e. a buyer and a seller, to affect a contract of the sale and they
must be competent to contract. ‘Buyer’ as defined under Section 2(1) means a person who buys
or agrees to buy goods. ‘Seller’ has been defined under Section 13 which states that a person
who sells or agrees to sell goods.

2. GOODS

There must be some goods, the property which is or is to be transferred from the seller to the
buyer. The subject-matter as to the goods under the Contract of Sale must be movable property.
This Act does not concern the immovable property as its subject-matter.

3. PRICE

The most important essential for the enforceability of the Contract of Sale of goods is the price.
The price can be termed equivalent to the consideration. In the absence of such price or
consideration, the transfer cannot be termed as a sale. The transfer by way of the sale must be in
exchange for a price. The payment of the price can be made in two modes:

a) Paid fully in cash; or

b) Paid partly and rest promised to be paid partly in future.

The price can be determined through an instrument of agreement between the parties before the
conveyance (transfer) of the property.