LAW OF SALE OF GOODS ACT, 1930 Lecture Notes
INTRODUCTION Till 1930, 1930, transactions relating relating to sale and purchase of goods were were regulated ! the Indian Indian Contract "ct, 1#$%& 1#$%& In 1930, 'ections $( to 1%3 of the Indian Contract "ct, 1#$% were repealed and a separate "ct called )The Indian 'ale of *oods "ct, "ct, 1930 was passed& It ca+e into force force on 1 st ul!, 1930& -ith e.ect fro+ fro+ %% nd 'epte+er, 19(3, the word )Indian/ was also re+oed&& Now, the present re+oed present "ct "ct is called called )The 'ale of *ood "ct, "ct, 1930/& 1930/& This "ct etends to the whole of India ecept the 'tate of a++u and 2ash+ir&
"ccording to 'ection 3, the proisions of the Indian Contract "ct, 1#$%, still continue to appl! to contracts for the sale of goods ecept where )The 'ale of *oods "ct/, 1930 proides for the contrar!&
eaning of contract of 'ale "ccording to 'ection 4516 of the 'ale of *oods "ct, 1930, 7Contract of sale of goods is a contract where! where! the seller transfers transfers or agrees to transfer transfer the propert! in goods to the u!er for a price8& )Contract of 'ale/ is a generic ter+ which includes oth a sale as well as an agree+ent to sell&
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;ssential ;le+ents of Contract of 'ale The aforesaid de
There +ust e a seller seller as well as a u!er& u!er& )=u!er/ +eans a person who u!s u!s or agrees to u! goods 'ection 'ection %516:& )'eller/ +eans a person who sells sells or agrees to sell goods 'ection %5136:& )*ood/ +eans eer! >ind of +oale propert! other than actionale clai+s and +one!& ?ropert! +eans the *eneral propert! in goods, and not 'ection %5116:& ?ropert! *eneral propert! in goods +eans ownership of the goods& There +ust e a price& price& ?rice here here +eans the +one! consideration consideration for a sale of goods 'ection %5106:& %5106:& -hen the consideration consideration is onl! goods, it a+ount to a )arter/ and not sale& In addition to the aforesaid speci
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DI'TINCTION =;T-;;N '"@; "ND "*R;;;NT TO ';@@ -hat does )Contract of 'ale/ Include The ter+ )Contract of 'ale/ includes oth a )sale/ and )agree+ent to sell/ as shown elow&
-hen does "gree+ent to 'ell eco+e 'ale 'ection 4546:&
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"n "gree+ent to sell eco+es a sale when the ti+e elapses or the conditions are ful
Distinction etween 'ale and "gree+ent to 'ell " )'ale/ and an )"gree+ent to 'ell/ can e distinguished as underB
=asis of distinction
1& Transfer of ownership
'ale
"gree+ent to sell
Transfer of ownership of goods ta>es place i++ediatel!
Transfer of ownership of goods is to ta>e place at a future ti+e or suAect to ful
%& ;ecuted contract or ;ecutor! contract
It is an eecuted contract It is an eecutor! contract ecause nothing re+ains to ecause so+ething re+ains e done& to e done&
3& Cone!ance of propert!
=u!er gets a right to enAo! the goods against the whole world including seller& There fore, a sale creates Aus in re+ 5Right against propert!6&
4& Transfer of ris>
Transfer of ris> of loss of goods ta>es place 4:
=u!er does not get such right to enAo! the goods& It onl! creates Aus in persona+ 5Right against the person6&
Transfer of ris> of loss of goods does not ta>e place
& Rights of seller against the u!er/s reach
i++ediatel! ecause ownership is transferred& "s a result, in case of destruction of goods, the loss shall e orne ! the u!er een though the goods are in the possession of the seller&
ecause ownership is not transferred& "s a result, in case of destruction of goods, the loss shall e orne ! the seller een though the goods are in the possession of the u!er&
'eller can sue the u!er for the price een though the goods are in his possession&
'eller can sue the u!er for da+ages een though the goods are in the possession of the u!er&
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(& Rights of u!er against the seller/s reach
=u!er can sue the seller for da+aged and can sue the third part! who ought those goods, for goods&
=u!er can sue the seller for da+ages onl!&
$& ;.ect of insolenc! of seller haing possession of goods
=u!er can clai+ the =u!er cannot clai+ the goods goods fro+ the ocial een when he has paid the receier or assignee price ecause the ownership ecause the ownership has not transferred to the u!er& of goods has transferred The u!er who has paid the to the u!er& price can onl! clai+ rateale diidend&
#& ;.ect of insolenc! of the u!er efore pa!ing the price
'eller +ust delier the goods to the ocial receier or assignee ecause the ownership of goods has transferred to the u!er& Ee can onl! clai+ rateale diidend for the unpaid price&
'eller can refuse to delier the goods unless he is paid full price of the goods ecause the ownership has not transferred to the u!er&
eaning of *oods 'ection %5$6: *oods +eans eer! >ind of +oale propert! other than actionale clai+s and +one!, and includes the followingB 5a6 'toc> and shares 56 *rowing crops, grass and thing attached to or for+ing part of the land which are agreed to e sered efore sale or under the Contract of 'ale&
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Type of Goods
T!pes of *oods
;isting goods +ean the goods which are either owned or possessed ! the seller at the ti+e of contract of sale& Future goods 'ection %5(6: Future goods +ean goods to e +anufactured or produced or acGuired ! the seller after the +a>ing of the contract of sale& These are the goods the acGuisition of which ! the seller depends upon a contingenc! which +a! or +a! not happen&
CONDITIONS AND WARRANTIES It is usual for oth seller and u!er to +a>e representations to each other at the ti+e of entering into a contract of sale& 'o+e of these representations are +ere opinions which do not for+ a part of contract of sale& -hereas so+e of the+ +a! eco+e a part of contract of sale& Representations which eco+e a part of contract of sale are ter+ed as stipulations which +a! ran> as condition and warrant! e&g& a +ere co++endation of his goods ! the seller doesn/t eco+e a stipulation and gies no right of action of the u!er against the seller as such representations are +ere opinion on the part of the seller& =ut where the seller assu+es to assert a fact of which the
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u!er is ignorant, it will a+ount to a stipulation for+ing an essential part of the contract of sale&
eaning of 'tipulation 'ection 1%516: " stipulation in a contract of sale of goods +a! e a condition or warrant! 'ection 1%516:&
eaning of Condition 'ection 1%5%6: " condition is a stipulation 5a6 -hich is essential to the +ain purpose of the contract, and 56 The reach of which gies the aggrieed part! a right to ter+inate the contract&
eaning of -arrant! 'ection 1%536: " warrant! is a stipulation 5a6 -hich is collateral to the +ain purpose of the contract, and 56 The reach of which gies the aggrieed part! a right to clai+ da+ages ut not right to reAect goods and to ter+inate the contract&
-hen condition to e treated as warrant! 'ection 13: In the following three case, a reach of a condition is treated as a reach of a warrant!B 5a6 -here the u!er waies a conditionB once the u!er waies a condition, he cannot insist one its ful
56 -here the u!er elects to treat reach of the condition as a reach of warrant!H e&g& where he clai+s da+ages instead of repudiating the contract& 5c6 -here the contract is not seerale and the u!er has accepted the goods or part thereof, the reach of an! condition ! the seller can onl! e treated as a reach of warrant!& It can not e treated as a ground for reAecting the goods unless otherwise speci
Epress !"d #$p%#ed co"d#t#o"s !"d &!rr!"t#es In a contract of sale of goods, conditions and warranties +a! e epress or i+plied& 5a6 ;press Conditions and -arranties These are epressl! proided in the contract& For ea+ple, a u!er desires to u! a 'ON TJ odel No& %0(%& Eere, +odel no& is an epress condition& In an adertise+ent for 2haitan fans, guarantee for !ears is an epress warrant!& 56 I+plied Conditions and -arranties These are i+plied ! law in eer! contract of sale of goods unless a contrar! intention appears fro+ the ter+s of the contract& The arious i+plied conditions and warranties hae een shown elow&
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i+plied conditions 'ections 145"6, 1516, 1(516, 1(5%6, 1(536, 1$:
Condition as to Title 'ection 145a6: There is an i+plied condition on the part of the seller that 5i6 in the case of a sale, he has a right to sell the goods, and 5ii6 in the case of an agree+ent to sell, he will hae a right to sell the goods at the ti+e when the propert! is to pass& 56 'ale ! Description 'ection 1: -here there is a contract of sale of goods ! description, there is an i+plied condition that the goods shall correspond with description& The +ain idea is that the goods supplied +ust e sa+e as were descried ! the seller& 'ale of goods ! description include +an! situations as underB
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5c6 'ale ! 'a+ple 'ection 1$: " contract of sale is contract for sale ! sa+ple when there is a ter+ in the contract, epress or i+plied, to that e.ect& 'uch sale ! sa+ple is suAect to the following three conditions& 5i6 The goods +ust correspond with the sa+ple in Gualit!& 5ii6 The u!er +ust hae a reasonale opportunit! of co+paring the ul> with the sa+ple& 5iii6 The goods +ust e free fro+ an! defect which renders the+ un+erchantale and which would not e apparent on reasonale ea+ination of the sa+ple& 'uch defects are called latent defects and are discoered when the goods are put to use& It +a! e noted that the seller cannot e held liale for apparent or isile defects which could e easil! discoered ! an ordinar! prudent person&
5d6 'ale ! sa+ple as well as ! Description 'ection 1: If the sale is ! sa+ple as well as ! description, the goods +ust correspond with the sa+ple as well as the description&
5e6 Condition as to Kualit! or Fitness 'ection 1(516: There is no i+plied condition as to the Gualit! or
5f6 Condition as a erchantale Kualit! 'ection 1(5%6: -here the goods are ought ! description fro+ a seller who deals in goods of that description 5whether he is the +anufacturer or producer or not6, there is an i+plied condition that the goods shall e of +erchantale Gualit!& The epression )+erchantale Gualit!/ +eans that the Gualit! and condition of the goods +ust e such that a +an of ordinar! prudence would accept the+ as the goods of that description& *oods +ust e free an! latent or hidden defects&
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5g6 Conditions as to -holeso+eness In case of eatales or proisions or foodstu.s, there is an i+plied condition as to wholeso+eness& Condition as to wholeso+eness +eans that the goods shall e
I$p%#ed W!rr!"t#es 'Sect#o" 1()*+, 1()c+, !"d 1)3+5a6 -arrant! as to Kuiet ?ossession 'ection 1456: There is an i+plied warrant! that the u!er shall hae and enAo! Guiet possession of the goods& The reach of this warrant! gies u!er a right to clai+ da+ages fro+ the seller&
56 -arrant! of Freedo+ fro+ ;ncu+rances 'ection 145c6: There is an i+plied warrant! that the goods are free fro+ an! charge or encu+rance in faour of an! third person if the u!er is not aware of such charge or encu+rance& The reach of this warrant! gies u!er a right to clai+ da+ages fro+ the seller&
5c6 -arrant! as to Kualit! or Fitness for ?articular ?urpose which +a! e "nneed ! the Usage of Trade 'ection 1(536:
5d6 -arrant! to Disclose Dangerous Nature of *oods In case of goods of dangerous nature the seller +ust disclose or warn the u!er of the proal! danger& If the seller fails to do so, the u!er +a! +a>e hi+ liale for reach of i+plied warrant!&
.e!"#"/ of te Doctr#"e of C!e!t E$ptor 'Sect#o" 1-
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The epression )Caeat ;+ptor/ +eans )let the u!er eware/& The doctrine of caeat e+ptor has een gien in the
7'uAect to the proisions of this "ct and an! other la for the ti+e eing in force, there is no i+plied warrant! or condition as to the Gualit! or
Ecept#o"s to te Doctr#"e of C!e!t E$ptor
The doctrine of caeat e+ptor is suAect to the following eceptions shown& 5a6 In Case of isrepresentation ! the 'eller -here the seller +a>es a +isrepresentation and the u!er relies on that representation&
56 In Case of Conceal+ent of @atent Defect -here the seller >nowingl! conceals a defect which would not e discoered on a reasonale ea+ination&
5c6 In Case of 'ale ! Description 'ection 1: -here the goods are sold ! description and the goods supplied ! the seller do not correspond to the description&
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Ecept#o"s to te Doctr#"e of C!e!t E$ptor 5d6 In Case of 'ale ! 'a+ple 'ection 1$: -here the goods are sold ! sa+ple and the goods supplied ! the seller do not correspond with the sa+ple&
5e6 In Case of 'ale ! 'a+ple as well as Description 'ection 1: -here the goods are sold ! sa+ple as well as description and the goods supplied do not correspond with sa+ple as well as description& 5f6 Fitness for a ?articular ?urpose 'ection 1(516: -here the seller or a +anufacturer is a dealer of the t!pe of goods sole ! hi+ and the u!er has disclosed the purpose for which goods are reGuired and relied upon the seller/s s>ill or Audge+ent&
5g6 erchantale Kualit! 'ection 1(5%6: -here the goods are ought ! description fro+ a seller who deals in goods of that description 5whether he is the +anufacturer or producer or not6, there is an i+plied condition that goods shall e of +erchantale Gualit!&
'"@; = NONLO-N;R' eaning of *eneral Rule The general rule is epressed ! the latin +ai+ 7Na+o dat Guod non haet8, which +eans that 7no one can gie what he does not hi+self possess8& If the seller/s title to the goods is defectie, the u!er/s title will also e defectie ecause the u!er acGuires his title to the goods fro+ the seller& Eence, the seller cannot gie a etter title to the u!er than he hi+self has&
Ecept#o"s to te Ge"er!% Ru%e The circu+stances under which a seller can gie a etter title than what he hi+self has, hae een shown&
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@ets us discuss these eceptions one ! one&
;ceptions to the *eneral Rule
The arious eceptions of the general rule and the conditions for their application are su++arised elowB
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;ception to the general rule
Conditions to e ful
5a6 'ale ! a +ercantile agent 'ection %$:
5i6 The agent +ust e in possession of goods of a docu+ent title 5e&g&, Railwa! receipt, =ill of @ading6 to the goods with the consent of the owner& 5ii6 The agent +ust hae sold the goods in the ordinar! course of usiness as a +ercantile agent& 5iii6 The u!er +ust hae acted in good faith& 5i6 The u!er +ust hae no >nowledge that the seller had no authorit! to sell&
56 'ale ! one of the Aoint owners 'ection %#0:
5i6 The Aoint owner +ust e in the sole possession 5ii6 The u!er +ust hae ought the goods in good faith& 5iii6 The u!er +ust hae no >nowledge that the seller had no authorit! to sell&
5c6 'ale ! a person in possession under oidale contract
5i6 The seller +ust e in possession of goods under a contract oidale uMs 19 or 19" of Indian Contract& "ct, 1#$% on ground of coercion, undue inuence, +isrepresentation of fraud& 5ii6 The goods +ust hae een sold 1(:
efore the contract is rescinded& 5iii6 The u!er +ust hae ought the goods in goods faith& 5i6 The u!er +ust hae no >nowledge that the seller/s title is defectie&
5d6 'ale ! seller in possession after sale 'ection 30516:
5i6 The seller +ust e in possession of goods or of a docu+ent of title to the goods, in the capacit! of a seller and not in an! other capacit! such as ailee& 5ii6 The u!er +ust hae ought the goods in good faith& 5iii6 The u!er +ust hae no >nowledge aout the preious sale&
5e6 'ale ! a u!er in possession efore the transfer of ownership 'ection 305%6:
5i6 The u!er +ust e in possession of the goods or a docu+ent of title to the goods, with the consent of the original seller and +ust hae ought or agreed to u! the goods& 5ii6 The new u!er +ust hae ought the goods in good faith& 5iii6 The new u!er +ust hae no >nowledge aout an! lien or other right of the original seller in respect of good&
"n unpaid seller +ust hae eercised his right of lien or stoppage in transit&
5f6 "n unpaid seller 'ection
5i6 The owner cannot e found with 1$:
4536:
reasonale diligenceH or 5ii6 The owner, if found refuse to pa! the lawful charges of
5g6 'ale ! a Finder of *oods 5i6 The pledger +ust hae +ade a 'ection 1(9 of Indian default in the pa!+ent of the det or Contract "ct 1#$%: the perfor+ance of the pro+ise at the stipulated ti+e& 5ii6 The pledgee +ust hae gien a reasonale notice to the pledger& The inole+ent person +ust e the owner of goods&
5h6 'ale ! a pawnee or pledgee
The owner of the goods his state+ent or conduct +ust hae lead the u!er to eliee that the seller has the authorit! to sell&
5i6 'ale ! Ocial Receier or "ssignee or @iGuidator 5A6 'ale ! owner ! estoppel
2RO2ERT, 2OSSESSION AND RIS4 There are three stages in the perfor+ance of a contract of sale of goods ! a seller, i, 1#:
516 The transfer of propert! in the goodsB 5%6 The transfer of possession of the goods 5i&e&, delier!6 and 536 The passing of the ris>&
1& Ris> follows ownership& Unless otherwise agreed, ris> follows ownership whether delier! has een +ade or not and whether price has een paid or not& Thus the ris> of loss as a rule lies on the owner&
%& "ction against third parties& when the goods are in an! wa! da+aged or destro!ed ! the action of third parties, it is onl! the owner of the goods who can ta>e action against the+&
3& Insolenc! of the seller or the u!er& In the eent of insolenc! of either the seller or the u!er, the Guestion whether the ocial Receier or "ssignee can ta>e oer the goods or not depends on whether the propert! in the goods has passed fro+ the seller to the u!er&
4& 'uit for price& The seller can sue for the price, unless otherwise agreed, onl! if the goods hae eco+e the propert! of the u!er&
2ASSING OF 2RO2ERT The pri+ar! rules for ascertaining when the propert! in goods passes to the u!er are as followsB 1& *oods +ust e ascertained& -here there is a contract for the sale of unascertained goods, no propert! in the goods is transferred to the u!er unless and until the goods are ascertained
%& Intention of the parties& -here there is a contract for the sale of speci
1& 'peci
%& Unascertained goods 5'ec& %36 -here there is a contract for the sale of unascertained goods, the propert! in the goods does not pass to the u!er until the good are ascertained 5'ec& %3 516 further proides that where is a contract for the sale of unascertained or future goods ! description and goods of that description and in a delierale state are unconditionall! appropriated to the contract, the propert! in the goods thereupon passes to the u!er& 3& *oods sent on approal or on sale or return -hen goods are deliered to the u!er on approal or on sale or return or other si+ilar ter+s, the propert! therein passes to the u!erB 516 when he signi
Ru%es !s to de%#ery of /oods 1& ode of delier! 5'ec& 336& Delier! should hae the e.ect of putting the goods in the possession of the u!er or his dul! authorised agent& Delier! of goods +a! e 516 actual, 5%6 constructie, or 536 s!+olic&
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%& Delier! and pa!+ent L concurrent conditions& Delier! of the goods and pa!+ent of the price +ust e according to the ter+s of the contract& Unless otherwise agreed, delier! of the goods and pa!+ent of the price are concurrent conditions, that is to sa!, the seller shall e read! and willing to gie possession of the goods to the u!er in echange for the price and the u!er shall e read! and willing to pa! the price in echange for possession of the goods 5'ec& 3%6&
3& ;.ect of part delier!& " delier! of part of the goods in progress of the delier! of the whole, has the sa+e e.ect, for the purpose of passing the propert! in such goods, as a delier! of the whole& =ut a delier! of the goods, with an intention of seering it fro+ the whole, does not operate as delier! of the re+ainder 5'ec& 346&
4& =u!er to appl! for delier!& "part fro+ an! epress contract, the seller of goods is not ound to delier the+ until the u!er applies for delier! 5'ec& 36& -here the goods are suseGuentl! acGuired ! the seller, he should inti+ate this the u!er and the u!er should then appl! for delier!& Unless otherwise agreed, the u!er has not cause of action against the seller if he does not appl! for delier!&
& ?lace of delier!& -here the place at which delier! of the goods is to ta>e place is speciing da!& -here there is no speci
(& Ti+e of delier!& -here under the contract of sale the seller is ound to send the goods to the u!er, ut no ti+e for sending the+ is <ed, the seller is ound to send the+ within a reasonale ti+e 5'ec& 3( 5%6& =ut where the contract uses words li>e 7directl!8, 7without loss of ti+e8, or 7forthwith8, Guic> and i++ediate delier! is conte+plated& De+and or tender of %1:
delier! should e +ade at a reasonale hour& -hat is a reasonale hour is a Guestion of fact 5'ec& 3( 546&
$& *oods in possession of a third part!& -hen at the ti+e of the sale the goods re with a third part!, there is no delier! ! the seller to the u!er until such third part! ac>nowledges to the u!er that he holds the+ on his ehalf& =ut where the goods hae een sold ! the issue or transfer of an! docu+ent of title to goods& ;&g&& a receipt or a ill of lading, such third part!/s consent is not reGuired 5'ec& 3( 536&
#& Cost of delier!& Unless otherwise agreed& "ll epenses of and incidental to +a>ing of delier! are orne ! the seller, ut all epenses of and incidental to otaining of delier! are orne ! the u!er 5'ec& 3( 56&
9& Delier! of wrong Guantit! 5'ec& 3$6& The delier! of the Guantit! of goods contracted for should e strictl! according to the ter+s of the contract& " defectie delier! entitles the u!er to reAect the goods& The three di.erent contingencies which +a! arise in case of a defectie delier!& I&e&, delier! of a wrong Guantit!&
RIG5TS OF AN 6N2AID SELLER )'eller/ here +eans not onl! the actual seller, ut also an! person who is in the position of a seller, e&g&, an agent of the seller to who+ a ill of lading has een endorsed, or a consignee or agent who has hi+self paid for the goods or is directl! responsile for the price 'ec& 45%6:&
RI*ET' OF "N UN?"ID ';@@;R
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I& Rights of an unpaid seller against the goods -here the propert! in the goods has passed to the u!er, an unpaid seller has the following rights against the goods 'ec& 4(516:B 1& Right of lien 9'ecs& 4(516 5a6 and 4$ to 49: " lien is a right to retain possession of goods until pa!+ent of the price 'ec& 4(516 5a6:& It is aailale to the unpaid seller of the goods who is in possession of the+ where& 5a6 The goods hae een sold without an! stipulation as to creditB 56 The goods hae een sold on credit, ut the ter+ of credit has epiredH 5c6 The u!er eco+es insolent 'ec& 4$516:& Rules regarding lien& 516 The seller +a! eercise his right of lien not with standing that he is in possession of the goods as agent or ailee for the u!er 'ec& 4$5%6:& If he loses the possession of he goods, he losses the right of lien also&
%& Right of stoppage in transit 'ecs& 4(516 56 and 0 to %: The right of stoppage in transit is a right of stopping the goods in transit after the unpaid seller has parted with the possession of the goods& Ee has the further right of resu+ing possession of the goods as long as the! are in the %3:
course of transit, and retaining possession until pa!+ent or tender of the price& It is aailale to the unpaid sellerL& i&
-hen the u!er eco+es insolentH and
ii&
-hen the goods are in transit 5'ec& 06&
D#st#"ct#o" *et&ee" r#/t of %#e" !"d r#/t of stopp!/e #" tr!"s#t i& The unpaid seller/s right to stop the goods in transit arises onl! when the u!er is insolent ut the right of lien can e eercised een when the u!er is ale to pa! ut does not pa!& ii& The right of lien can e eercised on goods which are in actual or constructie possession of the seller& iii& The right of lien co+es to an end when the possession of the goods is surrendered ! the seller, ut the right of stoppage in transit co++ences when the goods hae left the possession of the seller and continues until the u!er or his agent has acGuired their possession& i& The right of lien is to retain possession, while the right of stoppage in transit is to regain or resu+e possession&
3&Right of resale 'ecs& 4(516 5c6 and 4: The unpaid seller can reLsell the goods P 516 -here the goods are of a perishale natureB or 5%6 -here he gies notice to the u!er of his intention to reLsell the goods and the u!er does not within a reasonale ti+e pa! or tender the price&
A6CTION SALES " sale ! auction is a pulic sale where di.erent intending u!er tr! to outid each other& The goods are ulti+atel! sold to the highest idder& The %4:
auctionneer who sells the goods ! auction is an agent of the seller, i&e&, the owner& Eis relationship with the owner of the goods is goerned ! the general principles of the law relating to agenc!&
?rocedure in auction sales& The usual procedure in case of auction sales is as followsB The proposed auction is dul! adertised and a printed catalogue of the goods together with the ter+s of sale is circulated& On the appointed da! and ti+e, the intending u!ers asse+le and the auctioneer puts the di.erent lots to auction and inites ids fro+ the intending u!ers& Rules of auction sales& The law on auction sales is contained in 'ec& (4 of the 'ale of *oods "ct& "ccording to it, in the case of a sale ! auction the following rules appl!B *oods put up for sale in lots& -here goods are put up for sale in lots, each lot is pri+a facie dee+ed to e suAect of a separate contract of sale 'ec& (4516:&
Co+pletion of sale& The sale is co+plete when the auctioneer announces its co+pletion ! the fall of the ha++er or in so+e other custo+ar! +anner&
Right of seller to id& " right to id +a! e resered epressl! ! or on ehalf of the seller& -here such right is epressl! resered 5ut not otherwise6, the seller or an! one person on his ehalf +a! id at the auction )'ection (4 536:& 'ale not notie use of pretended idding to raise the price, the sale is oidale at the option of the u!er 'ec& (45(6:& 2noc> out or agree+ent not to id against each other& -here a group of persons for+ a co+ination to preent co+petition etween the+seles at an auction and arrange that onl! one of the+ will id& %:
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL LLLLLLLLLLLLLLLLLLL ?reious Uniersit! Kuestions 1& De and laourQ 10& Is a contract for wor> and laour coered under the 'ale of *oods "ct, 1930Q 11& Denowing the eact +o+ent when propert! in goods passes to the u!er& 13& 'tate the rules relating to transfer of propert! of speci
56 -hat are the eceptions to this ruleQ
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