EXPLAIN THE INGREDIENTS OF

CONTRACT OF SALE????
WHAT ARE THE TYPES OF IMPLIED
CONDITIONS AND WARRANTIES???

Made by :
YAMINI BANSAL(47)
CONTRACT OF SALE

Acc. To Sec.4(1)
A contract of sale of goods is a contract whereby
the seller transfers or agrees to transfer the property
in goods to the buyer for a price.

 There may be a contract of sale between one part

owner and another.

A contract of sale may be absolute or conditional

depending upon the desire of contracting parties .
ESSENTIALS OF CONTRACT OF SALE
 Two parties
 Transfer of Ownership

 Goods

 Price

 All essentials of valid contract

 INGREDIENTS
 Sale :- When property is transferred from seller to
buyer at the time of formation of contract, an absolute
sale occurs.

 Agreement to sell :-When property in the goods is to be

transferred at some future date and not at the time of
contract, the contract of sale is termed as an agreement
to sell.
POINTS OF DISTINCTION
SALE VS AGREEMENT TO SELL
 Nature of Contract
 Nature of rights of buyer

 Consequences of breach by buyer

 Risk of loss

 Insolvency of the buyer

 Insolvency of the seller

 Consequences in case of resale

DISTINGUISH BETWEEN
SALE
 Its an executed (absolute)
contract.
 Creates jus in rem
i.e.gives the rights to
buyers to claim the goods
as against anybody who
disturbs their rights to use
the goods.
AGREEMENT TO SELL
 Its an executory (implies
a condition) contract.
 Creates jus in personam
i.e. right of either party
against each other for any
default in fulfilling its
part of agreement.
CONTD….
SALE AGREEMENT TO SELL

 If buyer refuses to  In this case the seller can

accept the goods & pay sue for damages.
the price , the seller may
sue him/her for the price.
 In this if there is any
 In this case the loss falls
damage to goods it falls on the seller although the
on the buyer goods are with buyer.
CONTD….
SALE AGREEMENT TO SELL

 If the seller becomes  In this case the buyer

insolvent while the goods cant claim for the goods
are with him , the buyer is even if he has paid the
entitled to recover the price . He can only claim
goods. ratable dividend for the
money paid.
 In this case the seller may
 If the buyer becomes refuse to deliver the
insolvent the seller must goods.
deliver the goods.
CONDITIONS & WARRANTIES
Acc to sec 12(1) “A stipulation in a contract of sale with
reference to goods which are subject matter there of,
may be a condition or a warranty.”

These stipulations can be of two types –

1) Conditions
2) Warranties
 Under sec 12(2) “A condition is a stipulation essential
to the main purpose of the contract, the breach of
which gives rise to a right to treat the contract as
repudiated.”

 Under sec 12(3) “A warranty is a stipulation

collateral to the main purpose of the contract, the
breach of which gives rise to a claim for damages but
not to a right to reject the goods and treat the contract as
repudiated.”
TYPES OF IMPLIED CONDITIONS
 Condition as to title [sec 14(a)]
 Condition as to description [sec 15 ]

 Condition as to sample [ sec 17(2)]

 Condition as to sample as well as description [sec 17(2)

(a)]
 Condition as to quality or fitness [ sec 16(1)]

 Condition as to merchantability [ sec 16(2)]

 Condition as to wholesomeness
TYPES OF IMPLIED WARRANTIES
 Warranty as to quiet possession [Sec 14(b)]
 Warranty against encumbrances [Sec 14(c)]

 Warranty to disclose the dangerous nature of goods.

THANK YOU!!!!!!!