Previous Lecture Buyer & Seller Rights Unpaid Seller & his Rights

Essentials of Contract of Sale Valid Contract Two Parties Goods Transfer of Property Price Include both Agreement to Sell & Sale No Formalities

Goods Goodwill, Trade Mark, Copyright, Patent, Water, Gas, Electricity

Classification of Goods Existing Specific Unascertained Future Contingent

Doctrine of Caveat Emptor The Buyer must be “Beware”

Specification, Condition and Warranty A representation which forms the part of the Contract of Sale & affect the Contract of Sale is known as Stipulation A Stipulation which is most important for formation of the Contract of Sale is known as Condition A Stipulation which is collateral of least importance for formation of the Contract of Sale is known as Warranty

Condition & Warranty Condition is a stipulation which is essential to the main purpose of the contract. It is vital important. Warranties are subsidiary or collateral to the main purpose of the contract. It is not vital importance. The main contract can be completed even if warranty is not fulfilled.

Condition & Warranty In case of breach of condition, the buyer put an end to the contract. A breach of condition may be treated as a breach of Warranty. In case of breach of warranty, the buyer cannot put an end to the contract. He can claim damages from the seller. A breach of warranty cannot be treated as a breach of contract.

Distinction of Sale & Sell Sale –Property of Goods Passes Agreement to Sell –Property of Goods passes in Future Date

Distinction of Sale & Sell Sale –Buyer fails to Pay, Seller can sue for Price Agreement to Sell –Buyer Fails to Pay, seller can only sue for Damages

Distinction of Sale & Sell Sale –Seller Breach, Buyer can sue and recovery of Goods Agreement to Sell –Seller Breach, Buyer can sue only for claim for damages

Distinction of Sale & Sell Sale –Goods destroyed, Loss of Buyer Agreement to Sell –Goods destroyed, Loss on Seller

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