Indian Sale of Goods Act 1930 Essay

It is a Mer cigargonttetile Law. The deals agreement of Goods mask is a large-hearted of Indian Contract execution. It came into existence on 1 July 1930. It is a get hold of whereby the trafficker dislodges or agrees to transfer the airscrew in the goods to the obtainr for prize. A sign on of change of goods is a slue whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There whitethorn be a take in of shift between one part-owner and an former(a).Definition1. vendee A mortal who buys or agrees to buy goods.2. Seller A soulfulness who sells or agrees to sell goods.3. Goods Every kind of movable property other than actionable things and notes. Sale of Goods feign is one of very old mercenary law. Sale of Goods is one of the special types of Contract. Initi eithery, this was part of Indian Contract toy itself in chapter VII (sections 76 to 123). Later these sections in Contract coiffure were deleted, and separate Sale of Goods Act was passed in 1930. The Sale of Goods Act is panegyrical to Contract Act. Basic provisions of Contract Act apply to cringe of Sale of Goods also.Basic requirements of nonplus i.e. offer and acceptance, wakelessly enforceable agreement, reciprocal consent, parties competent to signalise, free consent, lawful object, consideration etc. apply to contract of Sale of Goods also. Contract of Sale A contract of change of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There whitethorn be a contract of sales agreement between one part-owner and another(prenominal). section 4(1). A contract of sale may be absolute or conditional. section 4(2). The law relating to sale of goods is contained in the Sale of Goods Act, 1930. It has to be read as part of the Indian Contract Act, 1872 Sections 2(5) and (3).Contract of Sale of Goods fit in to Section 4, a contract of sale of goods is a contract whereb y the seller(i) transfers or agrees to transfer the property in goods(ii) to the buyer,(iii) for a money consideration called the price.It shows that the expression contract of sale includes both a sale where the seller transfers the ownership of the goods to the buyer, and an agreement to sell where the ownership of goods is to be transferred at a future time or subject to some conditions to be carry through later on. The following argon thus the essentials of a contract of sale of goods(i) Bilateral contract It is a bilateral contract because the property in good has to pass from one party to another. A person dirty dognot buy the goods himself.(ii) Transfer of property The object of a contract of sale must be the transfer of property (importee ownership) in goods from one person to another.(iii) Goods The subject matter must be some goods.(iv) Price or money consideration The goods must be sold for some price, where the goods be exchanged for goods it is barter, not sale.(v) All essential elements of a valid contract must be present in a contract of sale. featuresThe Act deals with provisions related to the contract of sale of goods The Act deals with provisions of sale but not of mortgage or pledge which come on a lower floor the purview of Transfer of Property Act, 1882. The Act deals with goods but not of all movable goods (ex actionable deals, money etc.)MEANING OF SALES AND GOODSSALE- the exchange of a commodity for money the action of change something. In general, a transaction between two parties where the buyer receives goods (tangible or intangible), services and/or assets in exchange for money. 2) An agreement between a buyer and seller on the price of a security. The activity or business of selling products or servicesGOODS- a good is a product that down the stairssurface be used to satisfy some desire or need. , a good is a material that satisfies human wants and provides utility, for example, to a con spunker making a purchase.Conditio n and warranty.(1) A bargain in a contract of sale with reference to goods which argon the subject thitherof may be a condition or a warranty.(2) A condition is a consideration essential to the main purpose of the contract, the breach of which gives rise to a refine to finesse the contract as repudiated.(3) A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a recompense to reject the goods and treat the contract as repudiated.(4) Whether a stipulation in a contract of sale is a condition or a warranty depends in each geek on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract. free seller defined.(1) The seller of goods is deemed to be an gratis(predicate) seller within the meaning of this Act (a) when the whole of the price has not been paying or tendered (b) when a bill of exchange or other assignable legal catalogue has been t rustworthy as conditional knuckle underment, and the condition on which it was received has not been fulfilled by reason of the dishonour of the peter or otherwise. (2) In this Chapter, the go down seller includes every person who is in the position of a seller, as, for instance, an cistron of the seller to whom the bill of lading has been endorsed, or a consignor or agent who has himself paid, or is directly responsible for, the price.Unpaid sellers rights.(1) Subject to the provisions of this Act and of both law for the time creation in force, notwithstanding that the property in the goods may assume passed to the buyer, the unpaid seller of goods, as such(prenominal), has by implication of law (a) a spleen on the goods for the price while he is in possession of them (b) in case of the insolvency of the buyer a right of stopping the goods in expatriation after he has parted with the possession of them (c) a right of re-sale as express mail by this Act.(2) Where the prop erty in goods has not passed to the buyer, the unpaid seller has, in addition to his other remedies, a right of with place tar similar to and co-extensive with his rights of lien and stoppage in transit where the property has passed to the buyer. conveyable Instruments -The script Negotiable mode assignable by delivery and the word instruments means compose documents. It en cognomens a person to a certain sum of money. In simple words we send packing say it is a written document which is transferable from one person to another by delivery.According to contract act it is defined as , A transferable instrument means a promissory note, bill of exchange or go over collect by order or be ber.Example - Cheques, Bill of supersede and Promissory keeps be the important examples of negotiable instruments.Characteristics Of Negotiable Instruments - quest are the important characteristics of negotiable instruments 1. In Writing -It is the basic condition of the negotiable instrument that it is al representations in writing. It can not be verbal.2. despotic -It is an unconditional instrument if whatsoever condition is attached then it can not be called negotiable instrument.3. Transferable -It can easily transferable from one person to another. In these instruments right of ownership passes either by delivery or by endorsement.4. Payable On Demand -The total of the instrument is payable on demand or at any predeterminationfuture time.5. Payable In Money -The amount must be written on the instrument and it is always payable in terms of money.6. Payable To The Bearer -The amount written on it is payable to the bearer or to a specified person.7. Payment of Debt -It can be very easily used for the payment of debt. It is very simple and cheerful method of payment.8. Right of Recovery -A verification or Note gives the right to the creditor to reclaim the written amount from the debtor. He can recover this amount by himself or he can transfer this right to anot her.9. Better Title -If there is a defect in the title of the previous toter it does not affect the carrier in collectable course. So it is a check little than others.10. Exception of General Law -In case of transfer of property the general concept of law is that No body can transfer a better title than that of his own. lone(prenominal) if in case of instrument this law does not apply. A negotiable instrument blush got in good faith from thief is better title.11. Specified Amount -It is also a characteristic of negotiable instrument that specified and definite amount is written on the instrument.Holder.The holder of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receiveor recover the amount due on it from the parties thereto. Where the note, bill or cheque is lost or destroyed, its holder is the person so entitled at the time of such loss or destruction.Holder in due course.Holder in due course means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or indorsee thereof, if 1payable to order, before the amount mentioned in it became payable, and with verboten having sufficient cause to bank that any defect existed in the title of the person from whom he derived his title.. dialog by endorsementSubject to the provisions of section 58, a promissory note, bill of exchange or cheque 18payable to order, is negotiable by the holder by endorsement and delivery thereof. pass over of chequesA crossed cheque is a cheque that has been marked to specify an instruction about the way it is to be redeemed. A car parkality instruction is to specify that it must be deposited directly into an composition with a bank and not immediately change by a bank over the counter.What is Crossing of Cheque ?A cheque is a negotiable instrument. During the process of circulation, a cheque may be lost, stolen or the signat ure of payee may be done by some other person for endorsing it. Under these circumstances the cheque may go into wrong hands.Crossing is a popular device for protecting the draftsperson and payee of a cheque. Both bearer and order cheques can be crossed. Crossing prevents fraud and wrong payments. Crossing of a cheque means selective service Two Parallel Lines across the face of the cheque. Thus, crossing is necessary in order to have safety. Crossed cheques must de presented through the bank only because they are not paid at the counter.DISHONOUR OF A chit-a cheque which the bank will not pay because there is not enough money in the account to pay itCompanies Act 1956The Companies Act 1956 is an Act of the Parliament of India, enacted in 1956, which enabled companies to be formed by registration, and set out the responsibilities of companies, their directors and secretaries.1 The Companies Act 1956 is administered by the government of India through the Ministry of embodied Affa irs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, conjunction Law Board, conductor of Inspection, etc. The Registrar of Companies (ROC) handles incorporation of new companies and the administration of running companies.Companies ActIn India, the Companies Act, 1956, is the most important piece of legislation that empowers the Central administration to regulate the formation, financing, functioning and winding up of companies. The Act contains the mechanism regarding organisational, financial, managerial and all the relevant aspects of a follow. It empowers the Central Government to inspect the books of accounts of a caller-out, to direct special audit, to order investigation into the affairs of a companionship and to launch prosecution for violation of the Act.These inspections are designed to find out whether the companies conduct their affairs in accordance with the provisions of the Act, whether any foul practices prejudicial to the eart h interest are being resorted to by any smart set or a group of companies and to examine whether there is any mismanagement which may adversely affect any interest of the shareholders, creditors, employees and others.Following are the main characteristics of a union1. Legal EntityA family is an coloured person created by law. So, it has a separate legal entity from its members. It can hold and deal with any type of property of which it is owner in any way like, can enter into contracts, open bank account in its own name, sue and be sued in its name and capacity.2. constant SuccessionJoint stock company is a corporate body. It acquires a separate legal personality difference from its member with a common seal. It does not depend upon the existence of its members. It means company is not at all affected by the death, lunacy or bankruptcy of its members or shareholders.The shareholders may come or go but the company goes on forever. Only law can terminate its existence.3. Limited obligationThe liabilities of shareholders of the company is limited up to their heavy(p) investment only. The liability of the shareholders in the existence limited company is limited to the completion of the amount of share, they have subscribed. The shareholders are not liable for the payment of excess claim of the creditors even if swell of the company becomes insufficient.4. Common SealHowever, a company being artificial person, it can not sign on documents like natural person. Therefore, a common seal is used as a substitute of signature. The common seal affixed on all documents of the company.5. Transferability Of Share CapitalThe shares of a company are freely transferable from one person to another person except in case of private companies.6. Separation Of will power And ManagementEvery member or shareholder, who is real owner of the company can not take active part in daily management of the company. It is managed and controlled by a board of directors.7. Maintenanc e Of Books Of AccountsA company has to keep and maintain a prescribed set of accounting books and any failure in this regard attracts penalties.8. Audit Of Account And Publication Of pecuniary StatementsIt is compulsory for each and every company to get its accounts to be audited. A joint stock company has to publish its financial statement at the end of every fiscal year.Types Of CompaniesThere are different types of company, which can be classified on the basis of formation, liability, ownership, domicile and control.1. Types Of Companies On The base of operations Of Formation Or Incorporationa. Chartered CompaniesCompanies which are incorporated under special charter or proclamation issued by the head of state, are cognise as chartered companies. The banking company Of England, The East India Company, Chartered Bank etc. are the examples of chartered companies.b. Statutory CompaniesCompanies which are formed or incorporated by a special act of parliament, are cognise as stat utory companies. The activities of such companies are governed by their respective acts and are not required to have any history or Articles Of Association.c. Registered CompaniesRegistered companies are those companies which are formed by registration under the Company Act. Registered companies may be divided into two categories.* Private CompanyA company is said to be a private company which by its Memorandum of Association restricts the right of its members to transfer shares, limits the number of its members and does not invite the cosmos to subscribe its shares or debentures. *Public CompanyA company, which is not private, is know as public company. It needs minimum seven persons for its registration and upper limit to the limit of its registered capital. There is no restriction on issue or transfer of its shares and this type of company can invite the public to purchase its shares and debentures.2. Types Of Companies On The base Of LiabilityRegistered companies are divided into two types, namely, companies having limited liability and companies having unlimited liability.a. Companies Having Limited LiabilityThis liability can be limited in two ways* Liability Limited By SharesThese are those companies in which the capital is divided into shares and liability of members (share holders) is limited to the extent of face value of shares held by them. This is the most popular class of company.* Liability Limited By GuaranteeThese are such companies where shareholders promise to pay a fixed amount to meet the liabilities of the company in the case of liquidation.b. Companies Having Unlimited LiabilityA company not having any limit on the liability of its members as in the case of a partnership or sole trading concern is an unlimited company. If such a company goes into liquidation, the members can be called upon to pay an unlimited amount even from their private properties to meet the claim of the creditors of the company.3. Types Of Companies On The Basis Of Ownershipa. Government CompaniesA government company is a company in which at least 51% of the paid up capital has been subscribed by the government.b. Non-government CompaniesIf the government does not subscribe a minimum 51% of the paid up capital, the company will be a non-government company.4. Types Of Companies On The Basis Of Domicilea. National CompaniesA company, which is registered in a country by restricting its area of operations within the national boundary of such country is known as a national company.b. Foreign CompaniesA foreign company is a company having business in a country, but not registered in that country.c. Multinational CompaniesMultinational companies have their front and business in two or more countries. In other words, a company, which carries on business activities in more than one country, is known as multinational company.5. Types Of Companies On The Basis Of Controla. Holding CompaniesA holding company is a company, which holds all, or majority of the share capital in one or more companies so as to have a controlling interest in such companies.b. Subsidiary CompanyA company, which operates its business under the control of another company (i.e holding company), is known as a subsidiary company.Memorandum of connectiveThe enumeration of familiarity of company, often simply called the memorandum (and then often capitalised as an abbreviation for the official name, which is a proper noun and usually includes other words), is the document that governs the relationship between the company and the outside. It is one of the documents required to incorporate a company in the United Kingdom,1 Ireland, India, Bangladesh, Pakistan and Sri Lanka, and is also used in numerous of the common law jurisdictions of the Commonwealth. A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders. The MOA is accessible to the public and describes the companys name, physical address of registered office, names of shareholders and the distribution of shares.Articles of tie-inIn corporate governance, a companys articles of association (called articles of incorporation in some jurisdictions) is a document which, along with thememorandum of association (in cases where the memorandum exists) form the companys constitution, defines the responsibilities of the directors, the kind of business to be undertaken, and the means by which the shareholders exert control over the board of directors.definition of Articles Of AssociationA document that specifies the regulations for a companys operations. The articles of association define the companys purpose and lays out how tasks are to be accomplished within the organization, including the process for appointing directors and how financial records will be handled.