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Classification of Goods

` Goods - Every kind of

movable property except
actionable claim and
money
` Existing goods
Specific Goods
Ascertained Goods
Unascertained Goods
` Future Goods
` Contingent Goods
 Sale and Agreement to sell

` Executed ` Excutory
` Property passes ` Property will pass in
immediately future
` Loss falls on Buyer ` Loss falls on Seller
` It is unconditional ` It can be conditional
` Buyer has a right to ` Buyer cannot resale
resale ` It creates right against
` It creates right against specific persons only
the whole world
 General terms

` Earnest money ± money paid by one party in

advance to another party as a security for proper
performance of the contract
` Price ± money consideration for sale of goods
` Property ± ownership right in goods
 Conditions and warrantees

` Stipulation essential to ` Stipulation which is

the main purpose of subsidiary to the main
contract. purpose of contract.
` It has to be fulfilled ` Not of vital importance.
` Breach of condition ` Breach of warrantee
may cancel the contract may give right to sue for
and sue for damage. damage
` Breach of condition may ` Breach of warrantee
be treated as breach of cannot be treated as
warrantee breach of condition
 Implied conditions

` Condition as to title
` Condition as to description
` Condition as to sample
` Condition as to fitness and
quality
` Condition as to merchantability
(Saleable)
` Condition as to wholesomeness
( fit for the use)
 Implied warrantees

` Warrantee of quiet possession

` Warrantee of freedom from encumbrances
` Warrantee of usage of trade
` Warrantee of dangerous nature of goods
 Caveat emptor

` Let the buyer beware

` Exceptions:
` Fitness for buyer¶s purpose
` Sale under a trade name
` Custom or usage of trade
` Consent by fraud
` Sale by sample
` misrepresentation
  ransfer of property (Sec. 18-30)

` Specific or ascertained goods:

When the goods are in deliverable state
When the goods are to be put in deliverable state
When goods are to be measured
` Unascertained goods
`  ransfer of ownership in the case of Sale on
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 ransfer of title by Non-owners (Sec. 27-30)

` Rule - µNemo dat quod non habet¶ means No one can

give that which one has not got
` Exceptions to the Rule:
Sale by mercantile Agent
Sale by a Joint Owner
Sale under a voidable contract
Sale by a seller in possession after sale
Resale by Unpaid Seller
Sale by a finder of goods
Sale by Pledge
Sale by official receiver
Rights of unpaid seller (Sec. 45-61)
6 A seller is unpaid when the price is not paid or it is paid
through negotiable instrument, but it is dishonoured.
6 Rights of Unpaid seller:
Right against goods
Ł Right of Lien
Ł Right of stoppage in transit
Rights against the buyer personally
Ł Suit for Price
Ł Suit for Damage
Ł Suit for Interest

Remedies available to Buyer:
Ł Suit for Price
Ł Suit for Damage
Ł Suit for Interest
Ł Suit for breach of warrantee