Question 4 (d)

Sale and agreement to sell; rights of unpaid sellers; implied conditions

9 marks

Time to write
About 18 minutes
Topic
Short notes and true or false across several topics

Question

Question 4 (d) · 9 marks

Explain how a sale differs from an agreement to sale, and give a brief outlook on the rights of unpaid sellers and on the Implied conditions in the contact of sale, according to sales of goods Act, 1930.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

18 minfor 9 marks

Read from the question

  • differs fromSet the differences out in a table, basis by basis, not as two separate essays.

Write it in this order

The parts stand alone: start with the one you are surest of.

  1. Read; underline the asks; jot your points 1 min
  2. 1 (a) Sale and agreement to sell 3 marks 5 min
  3. 2 (b) Rights of unpaid sellers 3 marks 5 min
  4. 3 (c) Implied conditions 3 marks 5 min
  5. Check: every ask answered, key terms underlined 2 min

Short on time? A few lines on every part beat a full answer to one: each part is capped at its own marks.

Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

(a) Sale and agreement to sale. (The question's "agreement to sale" is the agreement to sell.) Under a sale the property in the goods passes to the buyer at once; under an agreement to sell it passes at a future time or on a condition being fulfilled:

Picture itSale and agreement to sell; rights of unpaid sellers; implied conditions

1The scooter was stolen goods—the police take it, and the buyer is left standing.

TitleThe seller has the right to sell the goods.

2One box of sweets, one sick family: food sold must be fit to eat.

WholesomenessEatables and provisions must be wholesome, that is, fit for human consumption.

3The sealed fan comes out broken—not fit to be sold as a fan at all.

Merchantable qualityFit to be sold in the market under that description.

QuestionSaleAgreement to sell
If the buyer will not pay, what can the seller sue for?The priceDamages, unless the price was payable on a stated day irrespective of delivery
Is anything left to be done to complete the transfer?No: an executed contractYes: an executory contract
When does the buyer become owner?At onceAt a future time, or when a condition is fulfilled

(b) Rights of unpaid sellers. A seller is an unpaid seller when the price has not been paid or tendered in full, or a negotiable instrument received as conditional payment has been dishonoured (s. 45). He has rights against the goods and against the buyer personally:

  1. Lien (s. 47): to retain the goods in his possession until payment or tender of the price.
  2. Stoppage in transit (s. 50): where the buyer becomes insolvent, to stop goods in transit and resume possession.
  3. Resale (s. 54): of perishable goods; after notice of intention to resell, if the buyer does not pay within a reasonable time; or where the contract reserves the right.
  4. Withholding delivery, where the property has not passed to the buyer (s. 46(2)).
  5. Against the buyer personally: suits for the price, for damages for non-acceptance, for interest, and for repudiation.

(c) Implied conditions, in the order of the Act's sections 14 to 17, present unless the contract shows a different intention:

  1. Section 14(a), title: the seller has the right to sell the goods.
  2. Section 15, description: goods sold by description correspond with it; and where the sale is by sample as well as description, the goods must match both.
  3. Section 16(1), fitness for purpose: where the buyer makes his purpose known to a seller who deals in such goods, and relies on the seller's skill, the goods must be reasonably fit for that purpose.
  4. Section 16(2), merchantable quality: goods bought by description from a dealer in them must be merchantable; for eatables this includes being wholesome.
  5. Section 17, sale by sample: the bulk corresponds with the sample, the buyer has a reasonable opportunity to compare them, and the goods are free from hidden defects making them unmerchantable.

Where the 9 marks sit

#ComponentMarks
1(a) Sale and agreement to sell3
2(b) Rights of unpaid sellers3
3(c) Implied conditions3
Total9
Keyboard: ← → previous and next question, / search

Report a problemopens an email to admin@getkunji.com with the question ID850-Q4dalready filled in.