Harpreet Singh

202102100

Answer:-1) The following are the five transfer "rules":

1. Specific goods and ascertained goods (the rule applies to both) a) Deliverable State The specific or
ascertained goods must be in a deliverable state, which means the buyer is obligated to take delivery of
the goods and cannot refuse delivery.
Example: At the showroom, polished furniture is available for purchase. The furniture can be delivered
here.
Rules: At the time of the contract, the seller and the buyer are said to have transferred ownership of the
goods or property immediately.
b) Non-Deliverable State The specific or determined goods are not in a deliverable state, which indicates
that some work needs to be completed before the buyer can receive the delivery. Example: Before the
goods can be delivered, they need to be polished on the furniture. As a result, when the polishing is
finished, these items will be ready to be shipped.
Rule: Once the goods are in a deliverable state and the seller gives the buyer notice, it is said that
ownership or property in them has passed to the buyer. The seller alone retains ownership until it is in
the non-deliverable state.
c) The price, weight, and measurement of the goods have not yet been determined Because the price,
weight, and measurement of the specific or determined goods are unknown at the time of the contract,
the seller retains ownership until they are known.
Rules: When the price, weight, or measurement of the goods is determined and the seller gives notice to
the buyer, ownership or property in the goods is said to have passed from the seller to the buyer.
d) Approval Basis Rules for Where Goods Are Delivered: The ownership of the goods shifts from the
seller to the buyer: à When the buyer consumes the goods, resells them to third parties, or does any
other act that indicates his or her acceptance of the transaction, such as 2. Unascertained goods and
future goods (for both of them, the rule is the same) a) Ascertainment of Goods Initially, unascertained
goods need to be ascertained, and then only ownership transfers from the seller to the buyer. à When
buyer does not give his approval or acceptance to the seller but retains the goods without giving the
notice of rejection beyond the time fixed for the return and, if no time is fixed, after the expiration/lapse
of the reasonable time. The seller retains ownership of the goods until they are ascertained. Example:
From the 100 liters of oil A has available to B, A agrees to sell B 10 liters of mustard oil, for which B
agrees and pays the price to A. From this point on, the oil will be referred to as unascertained goods,
and the property in the goods does not pass to B. It remains with A (the seller).
Rule: After the goods are identified, only ownership passes from the seller to the buyer. The seller
retains ownership of the goods until they are ascertained.
b) Unconditional Appropriation of Goods The seller and the buyer jointly select the goods for the buyer
without attaching any conditions or giving mutual consent for the selection.
The Basics of a Good Appropriation:
Nemo Dat Quod Non-Habet (Sale by Non Owners) Basically, Nemo Dat Quod Non-Habet means that the
seller needs to own the goods in order to sell them to the buyer. Goods can be chosen based on a
sample or a description that is provided. Goods must be in a state where they can be delivered.
However, there are few exceptions to this rule, which means that even non-owners of goods can sell
them.
Nemo Dat Quod Non-Habet Exclusions:
1. Sale by implication: The buyer is led to believe that the person selling the goods has the authority to
sell them by a statement or behavior. Additionally, the actual owner does not express any opposition to
the sale. If the following conditions are met, this will be considered a sale by estoppel: à The actual
owner does not object to the sale; à The buyer acted in good faith (the buyer has no doubt); 2.
Mercantile agent sales: A mercantile agent is a person whose job it is to act on behalf of the principal.
Therefore, even if the principal is not the actual owner of the goods, a mercantile agent can still sell
them on his or her behalf. However, the following requirements must be met by the mercantile agent:
Possession of the goods with the principal's consent; buyer acted in good faith (buyer had no doubt);
principal gave no notice of no authority to sell; buyer acted in the normal course of business. Joint
owner sale: Example: A Gold Bar is jointly owned by individuals A and B. They'll be referred to as joint
owners. They are both owners here. They share ownership equally. If one owner wishes to sell gold bars,
the following conditions must be met:
With the consent of other joint owners, the buyer has sole possession of the goods. The buyer has no
reason to doubt that the buyer acted in good faith. 4. We have already executed a voidable contract for
the sale of goods by a person in possession. Now I'll just elaborate on this point here. The other party,
who has obtained the goods through coercion, undue influence, etc., will take action if the cheated
party does not take any action. can sell the goods as long as the following conditions are met:
Goods sold before the contract is cancelled by the cheated party Buyer acted in good faith (buyer has no
doubt)5 Possession of goods under voidable contract (through coercion, undue influence, etc.) Sale by
the seller who keeps possession of the goods after the sale A has sold goods to B, but A has not
delivered the goods to B. This means that A still owns the goods and has sold the same goods to C. In
this case, A can only sell the goods to C if the following conditions are met:
Continues to possess the goods (that is, A continues to possess the goods that are being sold to B and is
now selling them to C) Buyer did not know about the previous sale (that is, C does not know about the
sale between A and B) Buyer acted in good faith (in this instance, buyer-C has no reason to doubt) 6.
Sale by the buyer before ownership is transferred A has only transferred possession of the goods, not
sold them to B; rather, A has only delivered the goods to B. Therefore, "B" is not a buyer and "A" is not a
seller in this instance. There is only a relationship between the bailer (A) and the bailee (B), and A is still
the actual owner. However, B still sold the goods to C, and if the following conditions are met, the
transaction is legal and C will become the actual owner of the goods:

Answer:-2) a) 1)Agent :- An agent is any person who has been legally empowered to act on behalf of
another person. Agents are employed to represent their client in negotiations or dealing with third
parties. Stockbroker or agent are hired by investors to make investment decisode relating to the stock
market.

2) Principal :- The principal is someone - an individual,a corporation,a partnership with the legal
authority to make certain decisions or actions.If the principal empower someone else to make the
decisions,that person becomes the agent. The principal is responsible for the action of the agent taken
in furtherance of duties or as per the instruction of principal.

b) 1) Employee:- An employee is a worker who is hired by a company or organization to perform specific

tasks or services. They work under the direction and control of their employer and are subject to their
employer's policies and procedures. Employees are usually paid a salary or hourly wage, and their
employer withholds taxes and pays their portion of social security and Medicare taxes. Employees are
entitled to certain benefits, such as health insurance, retirement plans, and paid time off, and they may
be eligible for unemployment insurance and workers' compensation.

2) Independent contractors:- An independent contractor, on the other hand, is a worker who provides
services to a company or organization but is not an employee. Independent contractors are self-
employed, and they are responsible for their own taxes, including self-employment taxes. They usually
work on a project-by-project basis and are free to set their own schedule and determine how they will
perform their work. Independent contractors are not entitled to the same benefits as employees, and
they are not protected by employment laws such as minimum wage and overtime laws.

c) Falsehood of information: will occur when a false representation is made and the party making the
representation, let's say X, knew it was false or was careless about whether it was true or not. This will
make the representation appear to be fraudulent because there is no accurate belief in its truth.

d) Negligent misrepresentation: is a type of non-fraudulent misrepresentation in which the defendant

makes a false statement without taking the necessary precautions to verify its truthfulness.

Answer:-3) A void contract was valid when it was made, but it becomes invalid later. In contrast, the
voidable contract remains in effect until the aggrieved party revokes it within the time limit. A contract is
null and void when neither party can carry it out because it is impossible for them to do so.