mercantile law notes ppt

mercantile law ppt download
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Published Date:25-07-2017
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CPT Section B Mercantile Laws Chapter 2 Unit 1 Dr. V.Seshadri Act was originally a part of Indian Contract Act,1872.Subsequently it was separated and became a separate law in 1930 Act covers all commercial transactions relating to sale of goods Contract of sale of goods are subject to the general principles of contract such as • offer • acceptance • free consent • competent to contract • lawful consideration and • lawful object. Therefore the provisions of Indian Contract Act continue to apply to the contracts for sale of goods so far they are not inconsistent with the express provisions of the Sale of Goods Act 1930. Formation of the contract of sale Conditions and warrantees Transfer of ownership and delivery of goods Unpaid seller Contract of sale:Contract whereby seller, transfers or agrees to transfer the property in goods to the buyer for a price. Section 4(1) Contract of sale is a generic term which includes both sale as well as agreement to sell. Sale: a contract whereby the seller transfers the property in goods to the buyer for a price. This is a concluded transaction i.e. executed contract. Agreement to sell: a contract whereby the seller agrees to transfer the property in goods to the buyer for a price. This is a transaction to be concluded i.e. executory contract. Where under a contract of sale the property in goods is transferred from the seller to the buyer,the contract is called sale. SECTION 4(3) Where under a contract of sale the transfer of property in goods is to take place at a future time or subject to some condition thereafter to be fulfilled ,the contract is called an agreement to sell. There may be a contract of sale between one part owner and another. Contract of sale may be absolute or conditional. Contract of sale may be express (oral) or in writing. It may be implied from the conduct of the parties or from the course of dealing between the parties. Two parties: presence of two distinct parties is essential for a germination of a contractual alliance. There must be a Buyer and a seller to make a sales contract. • Buyer: A person who buys or agrees to buy goods. • Seller: A person who sells or agrees to sell goods. • The subject matter must Goods: necessarily be goods. • every kind of movable property other than Goods: actionable claims and money and includes stocks. Goods includes: Stocks and shares Growing crops Grass Things attached and forming part of the land, which are agreed to be severed before sale or under the contract of sale. • A Disputed claim(like debt) Actionable which can be enforced through court of law and is excluded claim: from the definition of good. • though it is movable is not a good as per the Act since value Money: of goods is always expressed in terms of money as price. Goods Existing Future Contingent Goods Goods Goods Goods which are in existence at the time of contract of sale. These goods are owned and possessed by the seller. Existing goods Ascertained Unascertained Specific goods goods goods • Those which are identified and Specific agreed upon at the time of goods: contract of sale. • Though similar to specific goods Ascertained are those goods which become ascertained subsequent to the goods: formation of a contract of sale. • Goods which are not identified and agreed upon at the time of contract Unascertained of sale. These goods also called generic goods are defined by goods: description only and may form part of big lot of goods. Goods not in existence at the time of contract of sale. Goods are to be manufactured or produced or acquired by the seller after making the contract of sale. Contract to sell future goods is not sale but an agreement to sell. Goods whose availability depends upon a contingency which may or may not happen. Contract to sell contingent goods is an agreement to sell similar to that of future goods. Example: A contracts to sell laptop to B when the ship carrying electronic goods arrives shore. This contract can be performed only when the ship arrives shore. Goods perishing before making of contract: (Section 7) A contract for sale of specific goods is void, if at the time the contract was made the goods have without the knowledge of the seller either perished or became so damaged as no longer to answer to the description in the contract. • This is similar to the effect of mutual or bilateral mistake.

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