U 1 Formation Of Contract Of Sales

Question 1

Defination of Goods

Answer 1

2(7), Goods means every kind of movable property other than Actionable claims and money in circulation also includes stocks and shares, growing crops, grass and things attached to or forming part of land which agreed to be severed.

Question 2

Mercantile Agent

Answer 2

2(9), It means an agent who in the course of business has, as such agent, Authority either to sell goods or to consign goods for the purpose of sales or to buy goods or to raise money on the security of the goods.

Question 3

Insolvent

Answer 3

2(8), A person said to be insolvent when he ceases to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, wheather he has committed an act of insolvency or not.

Question 4

Ascertainment of price (s-9)

Answer 4

Determined by:
a. Fixed by contract
b. Manner provided by contract
c. Course of dealing between the parties.

If not determined:
a. Pay reasonable price to seller
b. Reasonable depends on fact and circumstances.

Question 5

Distinction between sale and agreement to sale.

Answer 5

Sure, how about this:

“The Narwhal Ran Lightly, But Not Really Intensely.”

Each word corresponds to one of the letters in “TNRLBNRI”.
T- Transfer of property
N- Nature of Contract
R- Remedies for breach
L- Liability of parties
B- Burden of Risk
N- Nature of rights
R- Right of Resale
I- Insolvency of seller as well as buyer.