Law of Sale of Goods

Law of Sale of Goods by Avtar Singh is a well-acclaimed work dealing with the law relating to the sale of goods and hire-purchases in India.

It defines the position and liability of a manufacturer, dealer and seller in relation to a purchaser viz. the Sale of Goods Act, 1939 and the Hire-Purchase Act, 1972 (unenforced). The relevancy of the Consumer Protection Act, 1986 in sale of goods and hire-purchases is also explained throughout the book as well as given separately as Appendix I to the book. Brief notes are given on miscellaneous topics like specific performance, anticipatory breach, recovery of interest and incidence of taxation. Foreign authorities are profusely quoted in order to explain the concepts involved.

The edition looks into the developments in the allied statutory fields especially the amendments in the Consumer Protection Act, 1986. The learned author has covered the recent decisions rendered by the Apex Court and High Courts while attempting to present a consistent account of the apparently conflicting decisions. Some of the recent developments analysed include the concept of passing of property, importance of time of delivery and changes made by the Universal Commercial Code in the remedial aspects of the subject etc. Also, Brief Contents, Detailed Contents, Table of Cases and Subject Index are provided to enable easy reference.

The book is very informative and authoritative and hope will prove useful to a wide readership covering students, teachers, consultants, lawyers and general public at large dealing in hire-purchase agreements.

About The Author 

Dr. Avtar Singh, B.Com., LL.M., LL.D, is a multi-faceted personality, who has adorned his cap with multiple feathers- Author, Advocate, Professor. He has been awarded with numerous prestigious honours like Saraswati Sammaan by the U.P. Government and Vidya Bhushan Sammaan by the Hindi Sansthan in U.P., for his contributions in the field of legal education. In his decades long career he has been a visiting professor of Business Laws at IIM, Lucknow and Reader in Law at Lucknow University. 

Titles written by him have been prescribed by many leading universities and have been lauded by both students and teachers. His works and writing style have been appreciated both Nationally and Internationally. 

He has followed his signature style of writing in all his works- the most comprehensive study of the subject that he takes in his hands in a simple and lucid language. He has written in both English and Hindi languages. 

His list of works include: Business Law, Company Law (in English and Hindi), Competition Law, Consumer Protection: Law and Practice, Contract Law (Easy Law Series), Introduction to Company Law (in English and Hindi), Introduction to Law of Negotiable Instruments, Introduction to Partnership (including Limited Liability Partnership) (in English and Hindi), Intellectual Property Law, Law of Arbitration and Conciliation (in English and Hindi), Laws of Banking and Negotiable Instruments (in English and Hindi), Law of Carriage (Air, Land and Sea), Law of Contract and Specific Relief (in English and Hindi), Law of Insolvency, Law of Insurance, Law of Partnership (Principles, Practice & Taxation), Law of Sale of Goods (in English and Hindi), Negotiable Instruments (in English and Hindi), Textbook on Law of Contract and Specific Relief. 

"The book would be very useful for all in the legal profession including students, teachers, bar and bench. The author deserves to be lauded for his excellent work." - Academy Law Review

"Though the book is primarily for the students, will also be useful to the lawyers to know the fundamental and the underlying principles of the law of Sale of Goods and Hire Purchase." - All India Reporter

"The distinguished author has made all efforts to make the subject thoroughly explanatory, to make the book outstanding in material and a masterpiece on the subject." - Gujarat Law Reporter

                   TABLE OF CASES XXII

                       Document of Title 2
                       Railway Receipt 2

                      Definition and Essentials of Sale [S. 4] 4
                       Bilateral Contract 4
                       Money Consideration 7
                       Sale and Contract for Work and Material 8
                       Goods 12
                       Conditional or Absolute 15
                       Sale and Agreement to Sell 15
                       When Agreement to sell becomes Sale [S. 4(4)] 16
                       Sale and Hire Purchase 16
                       Contract of Sale and contract of agency 19
                       Formalities of the Contract [S.5] 20
                       Subject-matter of Contract [S. 6] 20
                       Effect of Destruction [S. 7] 21
                       Goods Perishing after Agreement to Sell [S. 8] 24
                       The Price 24
                       Fixing of price 25
                       Agreement to Sell at Valuation [S. 10] 26

                   Stipulation as to time 27
                       Time of Payment 27
                       Other Stipulations as to time 28
                       Condition and warranty 30
                       Condition Reduced to Warranty [S. 13] 32
                       Waiver by Buyer 32
                       Acceptance of Goods by buyer 32
                       Condition converted into warranty only for remedial purposes 34
                       Implied Conditions 35
                       Implied undertaking as to title, etc. 35
                       Condition as to Title [S. 14] 35
                       Remedies of the Buyer 37
                       Sale by description [S. 15] 38
                       Buyer purchasing on the basis of description 38
                       Packing as description 40
                       Time and place of arrival of ship as description 40
                       Shipment to be in good condition 40
                       Reliance on description to be in contemplation of Parties 40
                       Correspondence with Description 44
                       Sale by description as well as by sample [S. 15] 46
                       Conditions implied by way of exceptions to rule of caveat
                       emptor [S. 16] 47
                       Statement of Rule of Caveat Emptor 48
                       Exceptions 49
                       Fitness for Buyer's Purpose [S. 16(1)] 50
                           Sale under Trade Name [Proviso to S. 16(1)] 54
                           Sale to Consumer Statutory Changes 55
                           Sale by agent 56
                       Merchantable Quality [S. 16(2)] 56
                           Purchase by description 56
                           Meaning of Merchantable Quality 57
                           Marketability 58
                           General Observation about Sale of Pictures 59
                           Emphasis upon Physical Quality rather than Saleability 60
                           Goods should not violate Applicable Statutes 60
                           Reasonable Fitness for General Purposes 61
                           Packing 62
                           Partly Defective 62
                           Test of Merchantable Quality 63
                           Statutory Definition of Merchantability 64	
                           Examination by the Buyer 65
                           Distinction between the First and Second Exceptions 66
                       Conditions Implied by Trade Usage [S. 16(3)] 67
                       Express Terms [S. 16(4)] 68
                       Sale in the course of seller's business 68
                           The legislative history 71
                           Sale 'in the course of a business' 73
                       Sale by sample 77
                       Bulk to Correspond with Sample 78
                       Opportunity to Compare Bulk with Sample 79
                       Free from Defects Rendering Goods Unmerchantable 79
                       Miscellaneous or Innominative Terms 80
                       Buyer's State of knowledge about Goods 81
                       Implied Warranties 82
                           Quiet Possession [S. 14(6)] 82
                           Free from Encumbrance [S. 14(c)] 83
                       Exclusion of Implied Terms [S. 62] 83
                       Duration of Implied Terms 83

                       Transfer of Property as between Seller and Buyer 84
                       Meaning of ascertained goods 84
                       Significance of Passing of Property 85
                       Property passes when intended to pass [S. 19] 86
                       Sale of Specific Goods [S. 20-22] 90
                       Specific Goods 92
                       Deliverable State 93
                       Unconditional Contract 94
                       Goods to be put in Deliverable State [S. 21] 96
                       Goods to be Weighed or Measured    [S. 22] 97
                       Sale of unascertained goods and appropriation [S. 23] 99
                       Sale on Approval [S. 24] 99
                       By Acceptance [S. 24(1)] 100
                       By Failure to return [S. 24(2)] 101
                           Sale on Returnable Packing 103
                       Sale of Unascertained Goods [Ss. 18 And 23] 103
                           Ascertainment 104
                           Separation from bulk 104
                       Ascertainment and appropriation 105
                           Property does not pass till appropriation 108
                           Appropriation with mutual assent 110
                           Appropriation without buyer's assent 110
                           Buyer's assent may be express or implied 110
                           Appropriation should be unconditional and of goods of
                           contract quality 110
                           Intention of Parties 111
                       Delivery to Carrier [S. 23(2)] 112
                           Acknowledgment by Bailee 113
                           Goods already in transit 113
                           Delivery to post office 114
                       Reservation of the Right of Disposal [S. 25] 114
                           Property passes on Compliance with the Seller's Conditions 116
                       Transfer of Risk [S. 26] 117
                       Risk and Property go together 117
                       Separation of risk from property 118
                           Delay in Delivery of Goods 119
                           Trade Customs 119
                           Express agreement 119
                           Terms of contract 120
                       Benefit to Goods 121

                       Nemo Dat Quod Non Habet 121
                       Buyer gets no title when sale is by person not the owner 121
                       Exceptions 122
                       Estoppel   [S. 27] 122
                           Estoppel by Negligence 123
                       Sale by Mercantile Agent [S. 27, Proviso] 125
                           Mercantile Agent 125
                           In possession as Mercantile Agent 126
                           With Owner's Consent 126
                           Must sell while acting as Mercantile Agent 127
                           Good faith and without Notice 127
                       Sale by a joint owner 128
                       Sale by person in possession under voidable contract [S. 29] 128
                           Sale after avoidance of Contract does not pass Title 129
                       Good faith and without Notice 130
                       Seller in possession after sale [S. 30(1)] 130
                       Buyer in possession before sale [S. 30(2)] 132

                   Delivery [S. 33] 135
                       Part Delivery [S. 34] 135
                       Duty of buyer to ask for delivery 136
                       Rules as to Delivery [S. 36] 136
                       Place of Delivery 137
                       Time for Delivery 137
                       Delivery by Attornment 137
                       Hours for Tender of Delivery 138
                       Expenses of Delivery 138
                       Delivery of Wrong Quantity [S. 37] 148
                       Delivery of wrong quantity 138
                       Short Delivery 139
                       Excess Delivery 139
                       Delivery of Mixed Goods 140
                       Special Agreement, Usage of Trade, Course of Dealing 141
                       Instalment Deliveries [S. 38] 140
                       Delivery to Carrier or Wharfinger [S. 39] 143
                       Seller's Duty [S. 39(2)] 144
                           Sea Transit [S. 39(3)] 144
                           Contracts involving Sea Routes 145
                           F.O.B. Contracts 145
                           C.I.F. Contracts 147
                           Ex Ship Contracts 150
                       Deterioration During Transit [S. 40] 151
                       Right of Examination [S. 41] 152
                       Acceptance [S. 42] 153
                       Duty after Rejection [S. 43] 154
                       Liability of Buyer for refusing to receive Goods [S. 44] 155

                       Definition of unpaid Seller [S. 45] 156
                       Rights of Unpaid Seller 157
                       Unpaid seller's lien 158
                       Part Delivery [S. 48] 159
                       Termination of Lien [S.49] 160
                       By Delivery to Carrier 160
                       By Delivery to Buyer 161
                       By Waiver 162
                       By tender of Price 162
                       Stoppage in Transit 162
                       Lien and Stoppage in Transit distinguished 163
                       Requirements of Stoppage in Transit 164
                       Commencement and end of transit 164
                       Delivery to the Buyer's [S. 51(1)] 165
                       Interception by the Buyer [S. 51(2)] 166
                       Acknowledgement to the Buyer [S. 51(3)] 166
                       Rejection by Buyer [S. 51(4)] 167
                       Delivery to ship chartered by Buyer [S. 51(5)] 168
                       Wrongful refusal to Deliver [S. 51(6)] 168
                       Part Delivery [S. 51(7)] 168
                       How Stoppage is effected [S. 52] 169
                       How stoppage in transit is effected 169
                       Carrier's Lien for Freight 169
                       Effect of sub-sale on seller's rights 170
                       When seller's rights defeated 170
                       Seller's Consent [S. 53(1)] 170
                       Transfer of Documents of Title [S. 52 (proviso)] 171
                       Right of Resale [S. 54] 173

                       Seller's Remedies Against Buyer 176
                       Suit for Price [S. 55] 176
                       Price in Foreign Currency 177
                       Damages for Non-Acceptance [S. 56] 177
                           Duty of mitigation 179
                           Damages for breach of contract 180
                       Buyer's Remedies Against Seller 181
                       Damages for Non-Delivery [S. 57] 181
                           Performance bonds and forfeiture clauses 183
                           Duty of Mitigation 184
                           Jurisdiction 185
                       Specific Performance [S. 58] 185
                       Remedy for Breach of Warranty [S. 59] 186
                           Notice to Seller of Defective Condition 188
                           Resale by Buyer 189
                           Acceptance of Goods without Inspection 189
                       Anticipatory Breach [S. 60] 189
                       Recovery of Interest [S. 61] 190

                       Exclusion of Implied Terms [S. 62] 192
                       By Express Contract 192
                       Course of Dealing 194
                       Trade Usage 195
                       Consumer Sales 195
                       Reasonable time 195
                       Right to impose conditions 198
                       Formation of ''ring'' or ''knock-out'' 199
                       Bidder's right to withdraw bid 200
                       Auctioneer's right not to accept any bid 200
                       Acceptance by proper Authority 200
                       Incidence of Taxation [S. 64-A] 201

                   Definition [S. 2(c)] 204
                   Position of parties to hire-purchase 207
                       Finance company and Guarantor 209
                   Form and signature [S. 3] 209
                   Contents of Hire-purchase Agreement [S. 4] 210
                   Deemed Hire-purchase Transaction [S. 5] 210
                   Warranties and Conditions, Limitation on Hire-purchase Charges
                       and Passing of Property 210
                       Implied Warranties and Conditions [S. 6] 210
                           Warranty of Quiet Possession 211
                           Free from Charge or Encumbrance 211
                       Implied Conditions [S. 6] 211
                           Condition as to Title [S. 6(2)] 211
                           Merchantable Quality [S. 6(2)(b)] 211
                           Fitness for Hirer's Purpose [S. 6(3)] 212
                           Letting according to Sample [S. 6(4)] 213
                           Letting under Description [S. 6(5)] 213
                       Limitation on Hire-purchase Charges [S. 7] 213
                       Passing of Property [S. 8] 215
                       Rights and Obligations of the Hirer 215
                           Right to purchase with Rebate [S. 9] 215
                           Right to Terminate Agreement [S. 10] 215
                           Minimum Payment 216
                           Hirer's Right to appropriate Payments [S. 11] 218
                           Assignment and Transmission of Hirer's Rights [S. 12] 218
                           Payment of Hire and Obligation of Compliance [S. 13] 219
                           Obligation to take care of Goods [S. 14] 220
                           Liability for Unauthorised Use [S. 15] 220
                           Obligation to give Information [S. 16] 220
                           Hirer's Right on Seizure of Goods [S. 17] 220
                       Rights and Obligations of the Owner 221
                           Right to Terminate Agreement [S. 18] 221
                           Rights of Owner on Termination [S. 19] 222
                           Restriction on Right to recover Protected Goods [S. 20] 223
                           Obligation to Supply Copies and Information [S. 23] 225
                           Discharge of price otherwise than by Money [S. 24] 225
                           Insolvency of Hirer [S. 25] 225
                           Successive Hire-purchase Agreements [S. 25] 226

                   SUBJECT INDEX 275