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Performance of Contract of Sales-Ch 17

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24 views14 pages

Performance of Contract of Sales-Ch 17

Uploaded by

naureen afzal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Performance of Contract of

Sales
CHAPTER 17
Contract of Sales

 The contract by which the ownership of


moveable goods is transferred from seller to
buyer

 A contract whereby the seller transfers or


agrees to transfer the property in goods to
the buyer for a price
Mode of Delivery

1. Actual delivery
2. Symbolic delivery: not possible to give;
control is transferred
3. Constructive delivery: change in
possession without any change in
actual custody
Performance of Contract of Sale

• The performance of a contract of sale


implies delivery of goodsby the seller and
acceptance of the deliveryof goods and
paymentfor them by the buyer, in
accordance with the contract.

• Its important aspects are;


i. Delivery of goods
ii. Acceptance of the delivery
iii. Payment
Delivery

• Delivery of goods means voluntary


transfer of possession of goods from
one person to another. If transfer of
possession is not voluntary, i.e.,
possession is obtained under pistol
point or by theft, there is no delivery.
Mode of Delivery

1. Actual delivery: The goods are physically


handed over by the seller to the buyer.

2. Symbolic delivery: The goods remain where


they are, but the means of obtaining possession of
goods is delivered (control is transferred).

3. Constructive delivery: The person in possession


of the goods of the seller acknowledges that he
holds the goods on behalf of the buyer and the
buyer has assented to it (change in possession
without any change in actual custody).
Rules as to Delivery of Goods

 Delivery may be either Actual or Symbolic or


Constructive.
 Delivery and payment are concurrent conditions;
Unless otherwise agreed, delivery and payment must be
made simultaneously.
 Effect of part delivery, when property in goods is
to pass on delivery
When a delivery of part of goods has been made with an
intention to deliver the whole goods, the property in the
whole goods is deemed to pass to the buyer as soon as
a portion is delivered.(Dixon vs Yates)
When delivery of part of goods has been done without
intention of delivering the whole goods then property
do not pass.
Rules as to Delivery of Goods
 Buyer to apply for delivery
A seller is not bound to deliver the goods until the buyer
ask for it.
 Time of delivery
If the time of delivery is not mentioned then it should be
deliverd within reasonable time.
 Place of delivery
In case of ‘Sale’ the goods must be delivered at the place
where they are at the time of sale.
In case of Agreement to sale the goods must be delivered
at a place where they are the time of making the
agreement.
In case of future goods, the goods are to be delivered at
the place where they are manufactured or produced.
Rules as to Delivery of Goods
 Delivery of goods where they are in possession
of a third party
The delivery is deemed when the third person acquires that
he holds the goods on behalf of buyer.
 Expenses of delivery
Unless otherwise agreed, Expenses of putting the goods into
deliverable state is borne by the seller and expenses of
delivery is borne by the buyer.
 Delivery of wrong quantity or different quality
Shortage, Excess delivery Mix delivery
To reject the whole goods
To accept the whole goods
To accept the quantity or quality he ordered and reject the
remaining.
Rules as to Delivery of Goods

 Installment Deliveries
Unless otherwise agreed, the seller is not
entitled to deliver the goods in
installment.

 Delivery of goods to carrier or


wharfinger
When goods are delivered to carrier for
transmission, it is treated as delivery of
goods to the buyer.
Acceptance Of Delivery By The
Buyer
According to sec. 42 a buyer is deemed to
have taken the delivery of goods in the
following circumstances:

1. When he intimates the seller that he has


accepted the goods.

2. When he does any act in relation to the


goods which amounts to acceptance of
goods, e.g. consumes, uses, pledges or
resells goods.
Rights of Buyer

1. Right to take delivery


2. Right to reject
3. Right to notice of insurance
4. Right to examine
5. Right to sue for damages
6. Right to sue for price
7. Right to sue for performance
8. Right to cancel the contract
9. Right to sue for interest
10. Right to sue for breach of warranty
Duties of Buyer

• Duty to accept goods


• Duty to demand delivery
• Duty to take risk of deterioration
• Duty to inform seller
• Duty to take delivery
• Duty to pay price
• Duty to pay for damages
Thank you

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