Mevan Kiriella Bandara

Slides:



Advertisements
Similar presentations
Copyright © 2004 by Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany BUSINESS LAW E-Commerce and Digital Law International Law and Ethics.
Advertisements

Sale of Goods Act, 1930 A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer.
PART 5 – SPECIAL CONTRACTUAL RELATIONSHIPS
Rights of an Unpaid Seller
PERFORMANCE OF CONTRACT. DELIVERY: DELIVERY: Delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery.
The Sales Contract: Transfer of Title and Risk of Loss
Ownership and Risk of Loss in Sales
© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Remedies for Breach of Sales and Lease Contracts.
Title Risk and Insurable Interest Chapter 20. Sale v. Lease Does title pass under a typical lease contract? Legal title vs. equitable title. –What is.
Sale of Goods Act Contd - Act Deals with goods Act Deals with goods Sec 4(1) – contract of sale – Contract of sale of goods is a contract whereby.
Sale of Goods Act 1930 santhi narayanan.
REMEDIAL MEASURES.
The Sale of Goods Act 1930.
Sale of Goods Act Contd - Act Deals with goods Act Deals with goods Sec 4(1) – contract of sale – Contract of sale of goods is a contract whereby.
Sale of Goods Act Contd - Act Deals with goods Act Deals with goods Sec 4(1) – contract of sale – Contract of sale of goods is a contract whereby.
BAILMENT AND PLEDGE.
The Sales Contract: Performance, Breach, and Remedies for Breach CHAPTER SEVENTEEN.
1 Sale of Goods Act, Introduction The law relating to sale and purchase of goods, prior to 1930 were dealt by the Indian Contract Act, In.
TRANSFER OF OWNERSHIP.
Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Remedies for Breach.
© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Chapter 19 Performance of Sales and Lease Contracts Chapter 19 Performance.
Legal and Taxation Aspects of your Small Business; I.Birt © 2007 Pearson Education Australia Legal and Taxation Aspects of Your Small Business 3 rd Edition.
Copyright © 2006 by Pearson Prentice-Hall. All rights reserved Slides developed by Les Wiletzky PowerPoint Slides to Accompany ESSENTIALS OF BUSINESS AND.
Foundations of Australian Law Fourth Edition Copyright © 2013 Tilde Publishing and Distribution Chapter 11 Sale of goods.
LAW OF SALE OF GOODS A contract of sale of goods is a contract whereby the seller transfers (or agrees to transfer) the property in goods to the buyer.
©2001 West Legal Studies in Business. All Rights Reserved. 1 Chapter 22: Remedies for Breach of Sales and Lease Agreements.
Contract of Sale of Goods. Sale of Goods Act Definition of Contract of Sale Section 4(1) of the Sale of Goods Act defines a contract of sale of goods.
TRANSFER OF OWNERSHIP.
Copyright © 2004 by Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany BUSINESS LAW E-Commerce and Digital Law International Law and Ethics.
Case Study 1. A lady buys synthetic pearls for high price thinking that they are natural pearls. The seller does not correct her mistake. Has she any remedies.
Essentials Of Business Law Chapter 15 Sales McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Amity School of Business 1 Amity School of Business BBA (GEN), IMBA, M&S, F&A- III Semester Module-III Sale of Goods Act, 1930 Swati Mittal.
Title, Risk, Insurable Interest Chapter 20. Identification For an interest in goods to pass from seller to buyer the goods must (1) exist and (2) be identified.
Previous Lecture Dissolution Partnership Firm Through Court.
© 2007 West Legal Studies in Business, A Division of Thomson Learning Chapter 15 Title and Risk of Loss.
Sale of goods this act may be called the sale of goods act,1930. it extends to the whole of India except the state of jammu and kashmir. It shall come.
2-1 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd PPTs to accompany Barron, Fundamentals of Business Law 7Rev This is the prescribed textbook.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright.
Business Law and the Regulation of Business Chapter 21: Transfer of Title and Risk of Loss By Richard A. Mann & Barry S. Roberts.
Sale of Goods Act Business Contract Law
Sale of Goods 2. Duties of the Seller Duty 3: In a contract for the sale of specific goods it is the duty of the seller to ensure that the goods are in.
© 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Sale of Goods 3. REMEDIES OF THE BUYER The buyer has two kinds of rights or remedies: – Real rights: to the goods – Personal rights: to the person Real.
The Sale of Goods Act A contract for sale of goods is a contract whereby the seller transfers or agrees to transfer the goods to the buyer for a.
Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. and the Legal Environment, 10 th edition by Richard.
LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 16 Slide 1 The Power to Transfer Ownership Describe various types of goods Discuss.
Ch. 7 Consumer Law and Contracts 7-1 Sales Contracts.
CHAPTER 18 SALE OF GOODS  2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint  slides to accompany A Guide to Business Law,
COMMERCIAL LAW.
17-2 The Law of Sales The law of sales affects many individuals and businesses, and is very comprehensive. It does not include investment securities,
Default rules for title
Terms of a Contract for the Sale of Goods
Chapter 21: Title, Risk, and Insurable Interest
REMEDIES FOR BREACH OF SALES AND LEASE CONTRACTS
Chapter 19 Title and Risk of Loss
Rights of an unpaid seller
Ownership and Risk of Loss in Sales
BUSINESS LAW PROJECT.
cHApter:- 4 Performance of the Contract… Submitted to: Submitted by:
TITLE TO GOODS AND RISK OF LOSS
PERFORMANCE OF CONTRACT OF SALE OF GOODS
NEGOTIABLE INSTRUMENTS
Chapter 24 TITLE AND RISK OF LOSS
LAW Commercial Law Sale of Goods.
STRUCTURE OF THE PRESENTATION
REMEDIES FOR BREACH OF SALES AND LEASE CONTRACTS
LABELING MACHINE Youth & Beauty Oy is a manufacturer of cosmetics products. Six months ago they bought a labeling machine from Inssi Oyj. Youth and Beauty.
Performance of Sales and Lease Contracts
Chapter 26 OBLIGATIONS AND PERFORMANCE
Presentation transcript:

Mevan Kiriella Bandara SALE OF GOODS Part 2 Mevan Kiriella Bandara © Mevan Kiriella Bandara

WHEN DOES THE PROPERTY TRANSFER FROM THE SELLER TO THE BUYER A Contract for “unascertained goods” – no property transfers until the goods are ascertained. In a sale of specific or ascertained goods, the property passes at the time when the Parties intend it to be passed. © Mevan Kiriella Bandara

WHEN DO PARTIES “INTEND” THE GOODS TO PASS? Intention must be ascertained by the terms of the Contract and the conduct of the Parties Where there is an unconditional Contract for the sale of specific goods, in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment or the time of delivery, or both, be postponed. “Deliverable state” is the state in which the Buyer would be bound to take delivery. Philip Head and Sons V Showfront [1970] © Mevan Kiriella Bandara

WHEN DO PARTIES “INTEND” THE GOODS TO PASS? 2. Where there is a contract for the sale of specific goods, and the seller is bound to do something to the goods for the purpose of putting them into a deliverable state, the property does not pass until such thing be done and the buyer has notice thereof. 3. Where there is a contract for the sale of specific goods in a deliverable state, but the seller is bound to weigh, measure, test, or do some other act or thing with reference to the goods for the purpose of ascertaining the price, the property does not pass until such act of thing be done and the buyer has notice of it. © Mevan Kiriella Bandara

WHEN DO PARTIES “INTEND” THE GOODS TO PASS? 4.When goods are delivered to the buyer on approval, or other similar terms, the property therein passes to the buyer: (a) when he signifies his approval or acceptance to the seller, or does any other act adopting the transaction ; (b) if he does not signify his approval or acceptance to the seller, but retains the goods without giving notice of rejection, then, if a time has been fixed for the return of the goods, on the expiration of such time, and, if no time has been fixed, on the expiration of a reasonable time. © Mevan Kiriella Bandara

WHEN DO PARTIES “INTEND” THE GOODS TO PASS? 5. (1) Where there is a contract for the sale of unascertained or future goods by description, and goods of that description and in a deliverable state are unconditionally appropriated to the contract, either by the seller with the consent of the buyer or by the buyer with the consent of the seller, the property in the goods thereupon passes to the buyer. (2) Where in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier for the purpose of transmission to the buyer, and does not reserve the right of disposal, he is deemed to have unconditionally appropriated the goods to the contract. Pignator Vs. Gilroy [1919] © Mevan Kiriella Bandara

WHAT IS RESERVATION OF “RIGHT TO DISPOSAL” The seller may, by the terms of the contract or appropriation, reserve the right of disposal of the goods until certain conditions are fulfilled. In such case, notwithstanding the delivery of the goods to the buyer, or to a carrier for the purpose of transmission to the buyer, the property in the goods does not pass to the buyer until the conditions imposed by the seller are fulfilled. Where goods are shipped, and by the bill of lading the goods are deliverable to the order of the seller or his agent, the seller is prima facie deemed to reserve the right of disposal. © Mevan Kiriella Bandara

TRANSFER OF TITLE / PASSING OF RISK Unless otherwise agreed, goods remain at the Seller’s risk until the property has passed to the buyer, after which, they are at the buyer’s risk, whether delivery has been made or not. However, where delivery has been delayed through the fault of either Buyer or Seller, the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault. © Mevan Kiriella Bandara

SALE BY PERSON NOT THE OWNER GENERAL RULE: Where goods are sold by a person who is not the owner, and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by his conduct precluded from denying the seller's authority to sell. An innocent purchaser will be entitled to recover the monies paid. Greenwood Vs. Bennet [1973] © Mevan Kiriella Bandara

SALE BY PERSON NOT THE OWNER EXCEPTIONS: If the true owner stands by and allows an innocent buyer to pay over money to a third party, the true owner will be estopped from denying the third parties right to sell Sale by a Mercantile Agent A Mercantile Agent is a person who, in the customary course of his business as such Agent, has authority either to sell or to consign goods for the purpose of sale Folkes Vs. King [1923] © Mevan Kiriella Bandara

PERFORMANCE OF THE CONTRACT FOR SALE OF GOODS It is the duty of the Seller to Deliver the goods and for the Buyer to Accept the Goods and Pay for them. DELIVERY OF GOODS In the absence of specific terms and conditions on the delivery of goods, the following Rules will apply: 1. The place of delivery is the Seller’s place of business, if he has one, if not, its his residence. © Mevan Kiriella Bandara

PERFORMANCE OF THE CONTRACT FOR SALE OF GOODS DELIVERY OF GOODS [Contd.] 2. Where the Seller is bound to send the goods to the Buyer, but no time for sending them is fixed, must be sent within reasonable time and in a reasonable hour. 3. If the goods are in possession of a 3rd party, there is no delivery until such 3rd Party acknowledges to the Buyer that he holds the goods on his behalf. © Mevan Kiriella Bandara

PERFORMANCE OF THE CONTRACT FOR SALE OF GOODS DELIVERY OF GOODS[contd.] 4. Where the Seller is authorised or required to send the goods by delivery to a carrier, whether named by the Buyer or not, the delivery to the carrier is prima facie proof of delivery to the Buyer. [Where the carrier is by Sea, Seller must give the Buyer reasonable notice to Insure the goods. Otherwise it will be at the Seller’s Risk] 5. The expenses of putting the goods into a deliverable state must be borne by the Seller. © Mevan Kiriella Bandara

PERFORMANCE OF THE CONTRACT FOR SALE OF GOODS ACCEPTANCE OF THE GOODS Acceptance is deemed to take place when the Buyer: The Buyer Intimates to the Seller that he has accepted the goods; The Buyer does any act to the goods which is inconsistent with the ownership of the Seller; Perkins Vs. Bell [1893] © Mevan Kiriella Bandara

PERFORMANCE OF THE CONTRACT FOR SALE OF GOODS ACCEPTANCE OF THE GOODS [Contd.] 3. The Buyer retains the goods after the lapse of reasonable time, without intimating to the seller that he has rejected them. Bernstein Vs. Pamsons Motors [1987] 4.If the Buyer has not examined the goods, he is deemed not to accept them unless he has reasonable opportunity to examine them. However, the Buyer, upon delivery, would have reasonable time to examine the goods. © Mevan Kiriella Bandara

PERFORMANCE OF THE CONTRACT FOR SALE OF GOODS ACCEPTANCE OF THE GOODS [Contd.] If the Buyer sent the seller the wrong quantity of goods that he ordered, the Buyer may: Reject the whole; Accept the whole: Accept the quantities he has ordered and reject the rest © Mevan Kiriella Bandara

RIGHTS OF AN UNPAID SELLER The seller of goods is deemed to be an "unpaid seller”: (a) when the whole of the price has not been paid or tendered; (b) when a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise. © Mevan Kiriella Bandara

RIGHTS OF AN UNPAID SELLER A Lien: A lien is a right to retain possession of goods until payment of the price: It is not available when: Goods have been delivered to the carrier; When the Buyer obtains possession of the goods lawfully. © Mevan Kiriella Bandara

RIGHTS OF AN UNPAID SELLER 2. Right of stoppage in Transit The Right of stopping the goods while they are on transit and retaining possession until the payment is made. It is available when: The Buyer becomes insolvent; The Goods are in transit © Mevan Kiriella Bandara

RIGHTS OF AN UNPAID SELLER 3. Right of Resale: The exercise of the right of lien or stoppage does not rescind the contract or give the seller the right of resale. However, the Seller has the right to resell when: a) The goods are of perishable nature; b) When the Seller gives the buyer his intention to resell unless the price is paid. c) Where the Seller expressly reserves the right to resell. © Mevan Kiriella Bandara

Action for Breach of Contract BY SELLER BY BUYER FOR THE PRICE This action applies only when the Property has passed to the Buyer FOR NON DELIVERY When the Seller wrongfully neglects in delivery of the goods FOR NON ACCEPTANCE When the Buyer refuses to accept the goods TO RECOVER THE PRICE If the buyer has paid the price and the goods are not delivered FOR SPECIFIC PERFORMANCE © Mevan Kiriella Bandara