Sale Of Goods And Hire Purchase

Question 1

Sale vs agreement to sell

Answer 1

1. Immediate transfer of ownership vs
2. Executed vs executory
3. Immediate transfer of risk
4. Seller can sue for price vs sue for damages
5. Buyer can sue the seller and third party for damages vs buyer can sue only the seller for damages
6. Insolvency of seller- buyer can claim vs if paid price ratable dividend
7. Buyer insolvency- seller must deliver to official assiignee vs claim ratable divided for unpaid price

Question 2

Contract of sale vs hire purchase

Answer 2

1. Sale of goods act vs hire purchase act 1972.
2. Ownership passed vs agreemnet to sell
3. Buyer has no rt to terminate vs rt
4. Seller has no rt to reposses good. Only sue for unpaid price
5. Buyer can sell to 3rd party
6. Benifits of implied condition and warranty available

Question 3

Intro case of caveat emptor

Answer 3

Wallis vs russel - Buyer not to take chance but to take care

Question 4

Exceptions to the rule of caveat emptor

Answer 4

1. Sec 16(1) - tells the seller the purpose and relies on his skill
   Baldry vs Marshall - touring, bugatti
2. 16(2) - goods are brought by description from a seller who deals in that description
   Grant vs Australian knitting mills

Question 5

Nemo dat quad non habet is incorporated in which section

Answer 5

Section 27

Question 6

Rationale of nemo dat quad non habet

Answer 6

Legal view- sale w/O authority not a good sale
Mercantile view - save the transaction if the person has bought the goods in good faith
To balance between 2 , some of the provisions of the law provide that if the goods are brought by innocent buyer with payment of consideration - save

Thus in a way it’s a theory of social engineering

Question 7

Exceptions which are nemo dat quad non habet

Answer 7

1. Transfer of title by estoppel
2. Sale by a Mercantile agent
3. Sale by one of the joint owners
4. Sale by a person in posession under a voidable contract before it has been voided by the other party
5. Sale by seller in posession
6. Sale by buyer in posession
7. Resale by unpaid seller - sec 54(3)
8. Sale by finder of good ( sec 169 of ICA)

Question 8

Define unpaid seller

Answer 8

Sec 45 -

1. The whole/ part of the price has not paid and that seller has immediate rt of action for the price
2. A boe or other NI has been received but the same has been dishonoured

Question 9

Framework of rt of lien

Answer 9

1. Sec 45
2. The seller can refuse to deliver the goods until the payment even though ownership passed
   Presupposes posession
3. Sec 47- 3 conditions
   A. Without any stipulation of credit
   B. On expiry of credit
   C. buyer becomes insolvent before delivery.
4. Rt of lien as soon as parts. Cannot be revived if in posession again
5. Termination of lien
   A. Payment
   B. By delivery to carrier, but if reserved the rt of disposal
   C. Buyer obtaining the posession of goods
   D. By waiver -

Question 10

What are the essential for stoppage in transit

Answer 10

Sec 50

1. Unpaid seller under sec 45
2. Insolvent within the meaning of 2(8)
3. Goods should be in transit

Question 11

What are the conditions under which unpaid seller can make a resale

Answer 11

When buyer doesnt pay the price to US within reasonable time then under sec 54

1. Goods are perishable
2. Reasonable notice of intention to resell
3. When the seller expressly reserve the rt of resell

Question 12

Framework for resale

Answer 12

1. Sec 54 - 3 conditions
2. Notice of resale
3. Loss or profit on resale
4. Rationale
5. Note : resale should be made within a reasonable time
6. Title of new buyer - exception to nemo dat quad non habet

Question 13

Exceptions to sec 26 - risk passes with property

Answer 13

1. May express contray intention or is the custom of trade
   Bevington vs dale- fur, on approval, burglars
2. First proviso to sec 26- delay
   Demby Hamilton vs barden - apple juice , feb, nov
3. Second proviso of 26
   S/B may not be the owner, but in posession of the good, he may be responsible to take care as a bailee under section 151 of the Indian contract act. Negligent, unauthorised use, mixes goods with his own good

Question 14

Conditions for transfer of property of unascertained goods sec 23

Answer 14

1. There is appropriation pf goods either by seller or buyer
2. Assent to appropriation . Atkinson vs bell ( machine, insolvent before assent)
3. Appropriation of goods of contract match the description and should be in a deliverable state
4. conditional appropriation

Question 15

Right to lien vs right to stoppage

Answer 15

1. Retain vs regain
2. Seller in posession vs parted, carrier, buyer not yet in posession
3. Insolvent
4. Precedes vs when lien ends