Sale of Goods

SALE OF GOODS

1. What is Sale of Goods contract?
Elements that necessary must exist in Sale of Goods contract are the transfers of goods as well as title or ownership and should only involve physical properties and intangible properties.

2. What is goods according to Sale of Goods Act?
It should be every kind of movable property other than actionable claims and money. Money and land are excluded from this act. Stock and shares, growing crops, grass, things attached but severable to land are included in this act.

TERMS OF CONTRACT

1. What is warranty? What is condition? Define.
Warranty is defined as a stipulation which is collateral to the main purpose of the contract and its breach only leads to claim for damages. While condition is defined as a stipulation which is essential to the main purpose of the contract and its breach leads to repudiation of contract.

2. What is meant by 'time is of essence in the contract'?
The general rule is that time is not of the essence unless the contract mentioned or otherwise the contract can be revoke. When time is not of the essence, courts generally permit parties to perform their obligations within a reasonable time.

IMPLIED TERMS UNDER SALE OF GOODS ACT

1. Sale of Goods Act imposes certain implied terms in a sale of goods contract, what is the purpose of doing so?
By doing this, the Act actually protecting the innocent buyers from any form of crime.

2. What is meant by merchantable quality?
An item is deemed merchantable if it is reasonably fit for the ordinary purposes for which such products are manufactured and sold. For example, soap is merchantable if it cleans. In general, a seller or manufacturer is required by law to make products of merchantable quality. In the event that the items do not meet with the proper standards, a suit can be brought against the seller or manufacturer by anyone who is injured as a result.