Reduction of capital with the consent of the tribunal:
A company limited by shares or a company limited by guarentee and having a share capital may reduce its share capital, subject to confirmetion by the tribunal, in any of the following three ways:
1.it may extinguish or reduce the liability on any of its shares in respect of share capital not paid up.
2.it may ,either with or without extinguish or reducing liability on any way of its shares cancel paid up or unrespected for available of assets.
3.the pay off any paid up capital is in excess of the wants of a company.procedure for the reduction of share capital:
1.special resolution
power to reduction capital must be granted in the articles of association of a company. if the articles do not grant such power,they may be allerted by a special resolution giving such power.
2.application to the tribunal:
the company shall then applly to the tribunal by petition for an order conforming the reduction.
Sunday, September 13, 2009
Consent of the share tribunal.
Reduction of capital with the consent of the tribunal:
A company limited by shares or a company limited by guarentee and having a share capital may reduce its share capital, subject to confirmetion by the tribunal, in any of the following three ways:
A company limited by shares or a company limited by guarentee and having a share capital may reduce its share capital, subject to confirmetion by the tribunal, in any of the following three ways:
1.it may extinguish or reduce the liability on any of its shares in respect of share capital not paid up.
2.it may ,either with or without extinguish or reducing liability on any way of its shares cancel paid up or unrespected for available of assets.
3.the pay off any paid up capital is in excess of the wants of a company.procedure for the reduction of share capital:
1.special resolution
power to reduction capital must be granted in the articles of association of a company. if the articles do not grant such power,they may be allerted by a special resolution giving such power.
2.application to the tribunal:
the company shall then applly to the tribunal by petition for an order conforming the reduction.
Rights of shareholders.
Rights of group of persons:
The rights of the members of a company may be grouped under the following rights of three heads.
1.statutory rights:
These are the rights which are conferred on the members by the companies act. These rights cannot be taken away or modified by any provision in the memorandum or articles.
2.documentory rights:
These are the rights are given to the members by the memorandum and the articles of association.
3.legal rights:
These are the rights which are given to members by the genral law.
Un Liability of members.
The liability of the members of a company depands on the nature of the company.
Company with unlimited liability.
Each member is liable in full for all the debts contracted by the company during the period he was a member.
Company limited by shares:
Each members is liable to pay the full nominal value of the shares held by him. If he has already paid a part of the amount on the shares,his liability is limited to the unpaid amount on the shares in respect of which he is a member.
Company limited by gurantee:
Each member is liable to contribute the amount guaranteed by him to be paid in the event of the winding up of the company.
The rights of the members of a company may be grouped under the following rights of three heads.
1.statutory rights:
These are the rights which are conferred on the members by the companies act. These rights cannot be taken away or modified by any provision in the memorandum or articles.
2.documentory rights:
These are the rights are given to the members by the memorandum and the articles of association.
3.legal rights:
These are the rights which are given to members by the genral law.
Un Liability of members.
The liability of the members of a company depands on the nature of the company.
Company with unlimited liability.
Each member is liable in full for all the debts contracted by the company during the period he was a member.
Company limited by shares:
Each members is liable to pay the full nominal value of the shares held by him. If he has already paid a part of the amount on the shares,his liability is limited to the unpaid amount on the shares in respect of which he is a member.
Company limited by gurantee:
Each member is liable to contribute the amount guaranteed by him to be paid in the event of the winding up of the company.
Members qualifications.
How to became a member:
Any person who is comptent to contract( the Indian contract act, 1872) may became a member of a company. This is subject to the provisions of the memorandum and articles of a company.the articles may provide that certain persons cannot become members of the company.
Members qualification
A person may become a member of a company in the following ways
1.members by subscription
The subscribers to the memorandum of association of a company are deemed to have agreed to became its members.neither application nor allotment of shares is necessary.
2.membership by application and registration:
Apart from the subscribers of memorandum, every other person, who agrees in writing to become a member and whose name is entered in the register of members, is a member of the company
Registration of the name of a person as member of a company may result from any one of the following ways:
1.by application and allotment.
2.by transfe.
3.by succession.
4.agreement to be in writing.
3.membership by beneficial ownership:
Every person holding equity share capital of a company and whose name is entered as deemed to be a member of concerned company.
4.membership by qualification shares:
Before a person can be appointed a director of a public company, he must take, or sign an under taking to take and pay for the qualification shares.
Any person who is comptent to contract( the Indian contract act, 1872) may became a member of a company. This is subject to the provisions of the memorandum and articles of a company.the articles may provide that certain persons cannot become members of the company.
Members qualification
A person may become a member of a company in the following ways
1.members by subscription
The subscribers to the memorandum of association of a company are deemed to have agreed to became its members.neither application nor allotment of shares is necessary.
2.membership by application and registration:
Apart from the subscribers of memorandum, every other person, who agrees in writing to become a member and whose name is entered in the register of members, is a member of the company
Registration of the name of a person as member of a company may result from any one of the following ways:
1.by application and allotment.
2.by transfe.
3.by succession.
4.agreement to be in writing.
3.membership by beneficial ownership:
Every person holding equity share capital of a company and whose name is entered as deemed to be a member of concerned company.
4.membership by qualification shares:
Before a person can be appointed a director of a public company, he must take, or sign an under taking to take and pay for the qualification shares.
Kinds of market.
Security markets in used for stock exchange:
Securities market refers to both the place and the persons who deal with securities. It includes buyers and sellers of securities and agencies/ institutions which help in the buying and selling of securities of the government companies.
Securities market may include into two categories:
1.primary market.
2.secandary market.
Primary market is concerned with issue of new shares. Secandary market deals with resale of securities traded in primary market.
PRIMARY MARKET(new issues market):
‘Primary market’ denotes the market for new issues. It has no pysical existence. It is concerned with floatation and issues of new shares and debentures by new or existing companies.the shares are offered to the public.
Securities market refers to both the place and the persons who deal with securities. It includes buyers and sellers of securities and agencies/ institutions which help in the buying and selling of securities of the government companies.
Securities market may include into two categories:
1.primary market.
2.secandary market.
Primary market is concerned with issue of new shares. Secandary market deals with resale of securities traded in primary market.
PRIMARY MARKET(new issues market):
‘Primary market’ denotes the market for new issues. It has no pysical existence. It is concerned with floatation and issues of new shares and debentures by new or existing companies.the shares are offered to the public.
Types of new issues.
TYPES OF NEW ISSUES:
The company, which raises finance through new issues, may follow any of the follwing methods:
a)public issue.
b)offer for sale.
c)through intermediars
1.private placement.
2.sundry intermediars.
3.managing brokers.
d)underwritting.
e)rights issue.
PROCEDURE REGARDING PRIMARY MARKET
1.Issue of prospectus:
A company which intends to raise finance from the public through can new issues, must be familiar to them. The company should have gained public intrest.
2.Application:
When a company issues the prospectus, the investors/ public may apply for the shares offered by the company.these application forms may be obtained from the brokers, bankers or lead managers who assist the company in the issue of new shares.
3.Allotment of shares:
On closing the subscription list, the company allot shares to the applicants. After allotment of shares, the allottees become the shareholders of a company. The allotment should may by the company only when it has received ‘minimum subscription’.
4.Regret letter:
After the allotment of shares, the allotment letters or share certificates be sent to the allottees with in a reasonable time, say, two months from the date of subscription closing list.
The company, which raises finance through new issues, may follow any of the follwing methods:
a)public issue.
b)offer for sale.
c)through intermediars
1.private placement.
2.sundry intermediars.
3.managing brokers.
d)underwritting.
e)rights issue.
PROCEDURE REGARDING PRIMARY MARKET
1.Issue of prospectus:
A company which intends to raise finance from the public through can new issues, must be familiar to them. The company should have gained public intrest.
2.Application:
When a company issues the prospectus, the investors/ public may apply for the shares offered by the company.these application forms may be obtained from the brokers, bankers or lead managers who assist the company in the issue of new shares.
3.Allotment of shares:
On closing the subscription list, the company allot shares to the applicants. After allotment of shares, the allottees become the shareholders of a company. The allotment should may by the company only when it has received ‘minimum subscription’.
4.Regret letter:
After the allotment of shares, the allotment letters or share certificates be sent to the allottees with in a reasonable time, say, two months from the date of subscription closing list.
Secandary market.
SECONDARY MARKET:
The secondary market refers to the market where the securities issued in the primary market where the securities issued in the primary market are traded.the secandory market depands on the primary market.The secandary market includes 21 regional stock exchanges, the over the counter exchange of india (OTCEI) and national stock exchange of india.
SHARE MARKET
The word ‘stock’ means a fraction of the capital of a company and the word ‘exchange’ means a place for purchasing and selling something. Stock exchanges deal in securities like shares, debentures or bonds issued by the companies or corporations in the private as well as public sector and bonds issued by the central and state governments.
CHERACTERISTICS OF SHARE MARKET:
1.It is a place where securities are purchases and sold.
2.A stock exchange is a voluntary association of persons whether incorp business for orated or not.
3.Stock exchanges do not conduct business for themselves.they provided facilities to their members to transict in company securities.
4.the trading in astock exchanges is strictly regulated.rules and regulations are prescribed for various transactions.
5.Each stock exchange formulates its own rules and regulations. Any members who acts against the rules of the exchange can be removed from the membership.
6.Only members can transact in a stock exchange. Any person who has completed 18 years can become a member.
7.Both geniune investors and speculators can buy and sell shares in stock exchange.
The secondary market refers to the market where the securities issued in the primary market where the securities issued in the primary market are traded.the secandory market depands on the primary market.The secandary market includes 21 regional stock exchanges, the over the counter exchange of india (OTCEI) and national stock exchange of india.
SHARE MARKET
The word ‘stock’ means a fraction of the capital of a company and the word ‘exchange’ means a place for purchasing and selling something. Stock exchanges deal in securities like shares, debentures or bonds issued by the companies or corporations in the private as well as public sector and bonds issued by the central and state governments.
CHERACTERISTICS OF SHARE MARKET:
1.It is a place where securities are purchases and sold.
2.A stock exchange is a voluntary association of persons whether incorp business for orated or not.
3.Stock exchanges do not conduct business for themselves.they provided facilities to their members to transict in company securities.
4.the trading in astock exchanges is strictly regulated.rules and regulations are prescribed for various transactions.
5.Each stock exchange formulates its own rules and regulations. Any members who acts against the rules of the exchange can be removed from the membership.
6.Only members can transact in a stock exchange. Any person who has completed 18 years can become a member.
7.Both geniune investors and speculators can buy and sell shares in stock exchange.
Secandary market.
SECONDARY MARKET:
The secondary market refers to the market where the securities issued in the primary market where the securities issued in the primary market are traded.the secandory market depands on the primary market.The secandary market includes 21 regional stock exchanges, the over the counter exchange of india (OTCEI) and national stock exchange of india.
SHARE MARKET
The word ‘stock’ means a fraction of the capital of a company and the word ‘exchange’ means a place for purchasing and selling something. Stock exchanges deal in securities like shares, debentures or bonds issued by the companies or corporations in the private as well as public sector and bonds issued by the central and state governments.
The secondary market refers to the market where the securities issued in the primary market where the securities issued in the primary market are traded.the secandory market depands on the primary market.The secandary market includes 21 regional stock exchanges, the over the counter exchange of india (OTCEI) and national stock exchange of india.
SHARE MARKET
The word ‘stock’ means a fraction of the capital of a company and the word ‘exchange’ means a place for purchasing and selling something. Stock exchanges deal in securities like shares, debentures or bonds issued by the companies or corporations in the private as well as public sector and bonds issued by the central and state governments.
CHERACTERISTICS OF SHARE MARKET:
1.It is a place where securities are purchases and sold.
2.A stock exchange is a voluntary association of persons whether incorp business for orated or not.
3.Stock exchanges do not conduct business for themselves.they provided facilities to their members to transict in company securities.
4.the trading in astock exchanges is strictly regulated.rules and regulations are prescribed for various transactions.
5.Each stock exchange formulates its own rules and regulations. Any members who acts against the rules of the exchange can be removed from the membership.
6.Only members can transact in a stock exchange. Any person who has completed 18 years can become a member.
7.Both geniune investors and speculators can buy and sell shares in stock exchange.
Functions of share market
The functions performed bya stock exchanged are as followes:
1.ready market.
2.mobilisation of savings.
3.evaluation of securities.
4.capital formulation.
5.proper channalisation of capital
6.fair dealings.
7.control of corporate sector.
8.barometer of business progress.
CHERACTERSTICS :
To provide the development of andto regulate the securities market sebi undertakes the following functions.
1.Regulating the business in stock exchange.
2. Regestering and regulating the working stock brokers,sub brokers,issue bankers,and other intermediars.
3.Regestering and regulating to working of collective investment schemes including mutual funds.
4.Promoting and regulating self-regulatory organizations.
5.Prohibiting insider trading in securities.
6.Prohibiting fradulment and unfair trade practice relating to securities market.
7.Promoting investors education and training of intermediars of securities market.
8.Regulating substancial acquision take over of companies.
9.calling for informations from, undertaking inspection. Conducting inquires and audits of the stock exchanges.
10.Performing such functions as may be delegated to it by the central government.
1.ready market.
2.mobilisation of savings.
3.evaluation of securities.
4.capital formulation.
5.proper channalisation of capital
6.fair dealings.
7.control of corporate sector.
8.barometer of business progress.
CHERACTERSTICS :
To provide the development of andto regulate the securities market sebi undertakes the following functions.
1.Regulating the business in stock exchange.
2. Regestering and regulating the working stock brokers,sub brokers,issue bankers,and other intermediars.
3.Regestering and regulating to working of collective investment schemes including mutual funds.
4.Promoting and regulating self-regulatory organizations.
5.Prohibiting insider trading in securities.
6.Prohibiting fradulment and unfair trade practice relating to securities market.
7.Promoting investors education and training of intermediars of securities market.
8.Regulating substancial acquision take over of companies.
9.calling for informations from, undertaking inspection. Conducting inquires and audits of the stock exchanges.
10.Performing such functions as may be delegated to it by the central government.
Functions of share market
The functions performed bya stock exchanged are as followes:
1.ready market.
2.mobilisation of savings.
3.evaluation of securities.
4.capital formulation.
5.proper channalisation of capital
6.fair dealings.
7.control of corporate sector.
8.barometer of business progress.
CHERACTERSTICS :
To provide the development of andto regulate the securities market sebi undertakes the following functions.
To provide the development of andto regulate the securities market sebi undertakes the following functions.
1.Regulating the business in stock exchange.
2. Regestering and regulating the working stock brokers,sub brokers,issue bankers,and other intermediars.
3.Regestering and regulating to working of collective investment schemes including mutual funds.
4.Promoting and regulating self-regulatory organizations.
5.Prohibiting insider trading in securities.
6.Prohibiting fradulment and unfair trade practice relating to securities market.
7.Promoting investors education and training of intermediars of securities market.
8.Regulating substancial acquision take over of companies.
9.calling for informations from, undertaking inspection. Conducting inquires and audits of the stock exchanges.
10.Performing such functions as may be delegated to it by the central government.
4.paid up capital:
This is a part of the issued capital which has been paid up by the share holders or which is credited as paid up on the shares.
5.uncalled sahares:
This is the remainder of the issued capital which has not been called. the company may call this amount any time but this is subject to the terms of issues of shares and the provisions of the articles.
6.Reserve capital:
This is that part of the uncalled capital of a company which can be called only in the event of its winding up, a limited company may, by a special resolution, determine that the portion of its uncalled capital shell not be called. inn the event of and the purpose of the company winding un and such capital is known as reserve capital.
WHAT IS SHARE CAPITAL?
Share capital means the capital raised by a company by the issue of shares. the word "capital" in connection with a company is used in several senses:
1.authorised capital.
2.issued capital.
3.paid up capital.
4.reserve capital.
1.authorised capital:
This is a nominal value of the shares which a company is authorised to issue by its memorandum of association.
2.issued capital:
This type of capital nominal value of the shares which is the offered to the public for subcription. a company does not normally issue all its capital at once, so that issued capital in such a case is less then the issued capital.
3.Called up capital:
That part of the capital of issued which has been called up on the shares.
This is a part of the issued capital which has been paid up by the share holders or which is credited as paid up on the shares.
5.uncalled sahares:
This is the remainder of the issued capital which has not been called. the company may call this amount any time but this is subject to the terms of issues of shares and the provisions of the articles.
6.Reserve capital:
This is that part of the uncalled capital of a company which can be called only in the event of its winding up, a limited company may, by a special resolution, determine that the portion of its uncalled capital shell not be called. inn the event of and the purpose of the company winding un and such capital is known as reserve capital.
WHAT IS SHARE CAPITAL?
Share capital means the capital raised by a company by the issue of shares. the word "capital" in connection with a company is used in several senses:
1.authorised capital.
2.issued capital.
3.paid up capital.
4.reserve capital.
1.authorised capital:
This is a nominal value of the shares which a company is authorised to issue by its memorandum of association.
2.issued capital:
This type of capital nominal value of the shares which is the offered to the public for subcription. a company does not normally issue all its capital at once, so that issued capital in such a case is less then the issued capital.
3.Called up capital:
That part of the capital of issued which has been called up on the shares.
Forfieted for shares.
If a shareholder, having been called upon to pay any call on his shares falls to pay the call, company has two remedies against the shareholder,viz.,
1.it may sue him for some amount due.
2.it may forfeit his shares.
forfieture means depriving a person of his property as a penolty for some act of omision.
the company may forfiet the shares of a shareholder for non-payment of some call/calls if the following conditions are satisfied.:
1.in accordence with articles.
2.notice prior to forfieture.
3.resolution of the board.
4.good faith.
1.it may sue him for some amount due.
2.it may forfeit his shares.
forfieture means depriving a person of his property as a penolty for some act of omision.
the company may forfiet the shares of a shareholder for non-payment of some call/calls if the following conditions are satisfied.:
1.in accordence with articles.
2.notice prior to forfieture.
3.resolution of the board.
4.good faith.
Issue of capital rights.
issue of capital of a company may take place
1.By allotment of new shares(known as rights shares).
2.by conversion of debentures or loans into shares.
1.A shares has a nominal value, whereas stock has no nominal value.
2.Stock is always flly paid-up, while shares may not be so.
3.stock is transferable in small function while shares can only be transferable in round members.
4.All shares are equal denomintion. stock may be of unequal amounts.
5.The frections or parts of stock do not bear any distinctive numbers while shares always bear distinctive numbers.
6.Shares can be directly issued to the public whereas stock cannot be issued directly. only fully paid up shares can be converted into stock.
Publication of capital:
where any notice,advertisement,or other official publication,or any business letter, bill-head or letter paper, of a company contains a statement of the amount of thje authorised capital of the company, such document shall also contain a statement of the subscribed and the paid up capital.
Reduction of share capital:
The law regards the capital of a company as something sacred the general principal of law founted on principals of public policy and rigidity enforced by tribunal is that no action resulting in a reduction of capital of a company should be permited unless the reduction is efforted.
1.By allotment of new shares(known as rights shares).
2.by conversion of debentures or loans into shares.
1.A shares has a nominal value, whereas stock has no nominal value.
2.Stock is always flly paid-up, while shares may not be so.
3.stock is transferable in small function while shares can only be transferable in round members.
4.All shares are equal denomintion. stock may be of unequal amounts.
5.The frections or parts of stock do not bear any distinctive numbers while shares always bear distinctive numbers.
6.Shares can be directly issued to the public whereas stock cannot be issued directly. only fully paid up shares can be converted into stock.
Publication of capital:
where any notice,advertisement,or other official publication,or any business letter, bill-head or letter paper, of a company contains a statement of the amount of thje authorised capital of the company, such document shall also contain a statement of the subscribed and the paid up capital.
Reduction of share capital:
The law regards the capital of a company as something sacred the general principal of law founted on principals of public policy and rigidity enforced by tribunal is that no action resulting in a reduction of capital of a company should be permited unless the reduction is efforted.
Thursday, September 10, 2009
The price.
The price:
The price in a contract of sale means the money consideration for sale of goods it forms an essentials part of the contract.it must be expressed in money. It must be the considerations for the transfer or it is agreement to transfer the property in goods from the seller to the buyer. It is not essentials that the price should be fixed at the time of sale. It must, however, be payable, though it may not haven fixed.
Ascertain price:
Price in a contract of sale may be fixed by the contract itself. Or left to be fixed in an agreed manner, or determined by the course of dealing between the parties.
Agreement to sell at valuation:
The parties may agreed to sell and buy goods on the terms that prices is to be fixed by the valuation of the third party. If such third party cannot be or does not make such valuation, the agreement becomes void.
Earnest:
Quite often in a contract of sale the buyer may give some tangible thing as a token of goods faith as a guarantee or security for the due performance of the contract. This returned or is in the form of money it is adjusted against the purchase price.
The price in a contract of sale means the money consideration for sale of goods it forms an essentials part of the contract.it must be expressed in money. It must be the considerations for the transfer or it is agreement to transfer the property in goods from the seller to the buyer. It is not essentials that the price should be fixed at the time of sale. It must, however, be payable, though it may not haven fixed.
Ascertain price:
Price in a contract of sale may be fixed by the contract itself. Or left to be fixed in an agreed manner, or determined by the course of dealing between the parties.
Agreement to sell at valuation:
The parties may agreed to sell and buy goods on the terms that prices is to be fixed by the valuation of the third party. If such third party cannot be or does not make such valuation, the agreement becomes void.
Earnest:
Quite often in a contract of sale the buyer may give some tangible thing as a token of goods faith as a guarantee or security for the due performance of the contract. This returned or is in the form of money it is adjusted against the purchase price.
Document of title in conditions.
Document of title in conditions:
Further transfer such right to another person. This may be done by mere delivery or by proper endorsement and delivery.
Conditions to be fulfilled by a document of title to goods.
1.it must be used in the document in the ordinary business.
2.the undertaking to delivered the goods to the possessor of the document must be unconditional.
3.the possessor of the document, by virtue of holding such document, must be unconditionally.
Some instands of documents of title to goods are given:
1.bill of lading:
It is a document which acknowledge receipt of goods on board a ship and is sighned by captain.
2.dock warrant:
It is a document by a dock owner, giving details of the goods and clarifying that the goods are held to the order of the goods.
3.railway receipt:
It is a document issued by a railway company acknowledging receipt of goods. It is to be presented by the holder or the goods.
4.delivery order:
It is a document containing an order by the owner of the goods to the holder of the goods on his order.
Further transfer such right to another person. This may be done by mere delivery or by proper endorsement and delivery.
Conditions to be fulfilled by a document of title to goods.
1.it must be used in the document in the ordinary business.
2.the undertaking to delivered the goods to the possessor of the document must be unconditional.
3.the possessor of the document, by virtue of holding such document, must be unconditionally.
Some instands of documents of title to goods are given:
1.bill of lading:
It is a document which acknowledge receipt of goods on board a ship and is sighned by captain.
2.dock warrant:
It is a document by a dock owner, giving details of the goods and clarifying that the goods are held to the order of the goods.
3.railway receipt:
It is a document issued by a railway company acknowledging receipt of goods. It is to be presented by the holder or the goods.
4.delivery order:
It is a document containing an order by the owner of the goods to the holder of the goods on his order.
Effect of distruction of goods.
Effect of distruction of goods:
1.goods perishing before making of contract:
He sale ofspecific goods is void if the time when the contract was made the good have, without the knowledge of the seller, perishied.the same would be the case where the goods became so damaged as no longer to the ground.
2.goods perishing after the agreement to sell but before the sale is effected:
An agreement to sell but before the sale is effected becomes void if subsequently the goods, without any fault on the part of the seller or buyer, perish or become so damaged as no longer to answer to their description in the in the agreement before the risk passes to the buyer.
Document of title to goods:
A document of title to goods is one which enables its possessor to deal with the goods described in it as if he were the owner. It is used in the ordinary course of business as proof of the possession or control of goods.
1.goods perishing before making of contract:
He sale ofspecific goods is void if the time when the contract was made the good have, without the knowledge of the seller, perishied.the same would be the case where the goods became so damaged as no longer to the ground.
2.goods perishing after the agreement to sell but before the sale is effected:
An agreement to sell but before the sale is effected becomes void if subsequently the goods, without any fault on the part of the seller or buyer, perish or become so damaged as no longer to answer to their description in the in the agreement before the risk passes to the buyer.
Document of title to goods:
A document of title to goods is one which enables its possessor to deal with the goods described in it as if he were the owner. It is used in the ordinary course of business as proof of the possession or control of goods.
Classification of goods.
Classification of goods:
The goods which from the subject of a contract of sale may be either existing goods, or future goods or contigent goods.
1.existing goods:
These are the goods which are owned or possessed by the seller at the time of sale.only existing goods can be the subject of a sale.
1.specific goods.
2.ascertained goods.
3.unascertained or genric goods.
2.future goods:
These are the goods which a seller does not posses at the time of the contract but which will be manufactured or producted or acquired by him after the making of the contract sale.
3.contigent goods:
Though a type of future goods, these are the goods the acquisition of which by the seller depands upon a contegency which may not happen.
The goods which from the subject of a contract of sale may be either existing goods, or future goods or contigent goods.
1.existing goods:
These are the goods which are owned or possessed by the seller at the time of sale.only existing goods can be the subject of a sale.
1.specific goods.
2.ascertained goods.
3.unascertained or genric goods.
2.future goods:
These are the goods which a seller does not posses at the time of the contract but which will be manufactured or producted or acquired by him after the making of the contract sale.
3.contigent goods:
Though a type of future goods, these are the goods the acquisition of which by the seller depands upon a contegency which may not happen.
Sale and barter exchange.
Sale and barter or exchange:
Were the property in goods is transferred from the seller to the buyer for a price, it is called a sale. Where goods are exchanged for goods, the transfer is called a barter and not sale. Bs put if the consideration for transfer of property in goods consistly of goods and sale.
Sale and bailment:
In a sale , the property in goods is transferred from the seller to the buyer.in a bailment, there is only transfer of possession from the ballor to the ballee.
Sale and contract for work and materials:
The sale of goods applies to a contract of sale and not to a contract for work and materials. A contract of sale contemplets the delivery of goods whereas a contract for work by another.
Subject-matter of contract of sale:
Goods from the subject-matter of a contract sale. Goods means every kind of movable party other than actionable claims and money; and includes stocks and shares, growing crops, grass and things attached to or under the contract sale.
Were the property in goods is transferred from the seller to the buyer for a price, it is called a sale. Where goods are exchanged for goods, the transfer is called a barter and not sale. Bs put if the consideration for transfer of property in goods consistly of goods and sale.
Sale and bailment:
In a sale , the property in goods is transferred from the seller to the buyer.in a bailment, there is only transfer of possession from the ballor to the ballee.
Sale and contract for work and materials:
The sale of goods applies to a contract of sale and not to a contract for work and materials. A contract of sale contemplets the delivery of goods whereas a contract for work by another.
Subject-matter of contract of sale:
Goods from the subject-matter of a contract sale. Goods means every kind of movable party other than actionable claims and money; and includes stocks and shares, growing crops, grass and things attached to or under the contract sale.
Sale and hire agreement.
A hire purchase agreement is a contract where by the owner of the goods lets them on hire to another person calle hirer or hire purchaser on payment of rent to be paid in instalment and upon an agreement that when a certain number of such paid.
Whether an agreement is a hire-purchase agreement or a contract of sale the test would be whether or not any option has been given to the hirer to terminate the contract.
Difference between a sale and a hire-purchase agreement:
Sale:
1.ownership is transferred from the seller to the buyer into.
2.the position of the buyer is that of the owner.
3.the buyer cannot terminate the contract and such as is bound to pay the price of the goods.
4.if the payment is made by the buyer in instalments, the amount payable by the goods.
Hire-purchase:
1.ownership is transferred from the seller to the hire-purchase only when a certain agreed paid.
2.the position of the hire-purchase is that of the ballee.
3.the hire-purchser has an option to terminate the goods the further instalments.
4.the instalment paid by the hire-purchaser are registered as hire charge and not as payment towords the price of the goods till excercised.
Whether an agreement is a hire-purchase agreement or a contract of sale the test would be whether or not any option has been given to the hirer to terminate the contract.
Difference between a sale and a hire-purchase agreement:
Sale:
1.ownership is transferred from the seller to the buyer into.
2.the position of the buyer is that of the owner.
3.the buyer cannot terminate the contract and such as is bound to pay the price of the goods.
4.if the payment is made by the buyer in instalments, the amount payable by the goods.
Hire-purchase:
1.ownership is transferred from the seller to the hire-purchase only when a certain agreed paid.
2.the position of the hire-purchase is that of the ballee.
3.the hire-purchser has an option to terminate the goods the further instalments.
4.the instalment paid by the hire-purchaser are registered as hire charge and not as payment towords the price of the goods till excercised.
Contract of re sell.
The seller cannot re-sell the goods.
the original buyer can only sue the seller for damages.
particular party:
A sale is a contract plus conveyance, and creats to the buyer to enjoy the goods as against the word at large including the Contract of sale how made:
No particular form is necessary constitute a contract sale. It is, like any other contract, made by the ordinary method of offer by one party and the acceptance by the party in others.
The contract of sale may provided for the immediate delivery of the goods, or immediate payment of the price both, or for the delivery or payment by instalments or that the delivery or payment or both shall be postpond.
Sale and agreement to sell- distinction:
1.transfer of property:
In a sale, the property in the goods passes from the seller to the buyer right to re-sell:
2.type of goods:
A sale can be only one be in case of existing and specific goods only.
3.risk of loss:
If the sale and goods are destroyed the losses falls on the buyer even though the goods are destroyed.
4.seller to sue for damages:
immediately so that the seller is no more than owner of the goods sold.
the original buyer can only sue the seller for damages.
particular party:
A sale is a contract plus conveyance, and creats to the buyer to enjoy the goods as against the word at large including the Contract of sale how made:
No particular form is necessary constitute a contract sale. It is, like any other contract, made by the ordinary method of offer by one party and the acceptance by the party in others.
The contract of sale may provided for the immediate delivery of the goods, or immediate payment of the price both, or for the delivery or payment by instalments or that the delivery or payment or both shall be postpond.
Sale and agreement to sell- distinction:
1.transfer of property:
In a sale, the property in the goods passes from the seller to the buyer right to re-sell:
2.type of goods:
A sale can be only one be in case of existing and specific goods only.
3.risk of loss:
If the sale and goods are destroyed the losses falls on the buyer even though the goods are destroyed.
4.seller to sue for damages:
immediately so that the seller is no more than owner of the goods sold.
Sale and agreement to sell.
Sale and agreement to sell:
Where under a contract of sale, the property in the goods is transferred from the seller to the buyer, the contract is called a sale but were the transferred of the property in the goods is to take place at a future time or subject to some conditions there fulfilled.
Transfer of property in goods for a price is the principles of the definition of contract of sale.
Essentials of a contract of sale:
The following essentials elements are necessary fr a contract of sale:
1.two parties:
There must be two distinct parties, a buyer and seller, to effect a contract of sale and they must be competent contract.
2.goods:
There must be some goods the property in which is or is to be transferred from the seller to the buyer. The goods which from the subject –matter of the contract of sale must be movable.
3.price:
The considering for the contract of sale, called price, must be money.
4.essentials elements of a valid contract:
All the essentials elements of a valid contract must be present in the contract of sale.
Where under a contract of sale, the property in the goods is transferred from the seller to the buyer, the contract is called a sale but were the transferred of the property in the goods is to take place at a future time or subject to some conditions there fulfilled.
Transfer of property in goods for a price is the principles of the definition of contract of sale.
Essentials of a contract of sale:
The following essentials elements are necessary fr a contract of sale:
1.two parties:
There must be two distinct parties, a buyer and seller, to effect a contract of sale and they must be competent contract.
2.goods:
There must be some goods the property in which is or is to be transferred from the seller to the buyer. The goods which from the subject –matter of the contract of sale must be movable.
3.price:
The considering for the contract of sale, called price, must be money.
4.essentials elements of a valid contract:
All the essentials elements of a valid contract must be present in the contract of sale.
Sale of goods.
Sale of goods:
The sale of goods is the most common of all comercial contacto all knowledge of its main purpose is to ulmost importance to all classes of the community.
Contracts for the sale of goods are subject to the genral legal principal applicable to all contracts, such as offer and its acceptance, the capacity of the parties, free and real consent, consideration, and legality of the object.
The expressions used to but not defined in the sale of goods and difiend in the contract act have the meanings assighned to them in the contract.
Formation of contract of sale:
Contract of sale of goods:
A contract of sale of goods is a contract where by the seller transfer or agrees to transfer the property in goods to the buyer for price. There may be a contract of sale between one part owner and another contract of sale may be about conditional.
The term contract sale is a genric term and includes both a sale and an agreement to sell.
The sale of goods is the most common of all comercial contacto all knowledge of its main purpose is to ulmost importance to all classes of the community.
Contracts for the sale of goods are subject to the genral legal principal applicable to all contracts, such as offer and its acceptance, the capacity of the parties, free and real consent, consideration, and legality of the object.
The expressions used to but not defined in the sale of goods and difiend in the contract act have the meanings assighned to them in the contract.
Formation of contract of sale:
Contract of sale of goods:
A contract of sale of goods is a contract where by the seller transfer or agrees to transfer the property in goods to the buyer for price. There may be a contract of sale between one part owner and another contract of sale may be about conditional.
The term contract sale is a genric term and includes both a sale and an agreement to sell.
Caveat empter.
Caveat emptor:
This means let the buyer beware, in a contract of sale of goods the seller is under no duty to reveal unflating truths about the goods sold.therefore, when a person buyes some goods, he must examine them thoroughly, if the goods term out to be defective or do not suit his purpose or if he depends upon his own skill or judgement and makes a bad selection.
Exceptions:
The doctrine of coveat emptor his certain importance exceptions. The case law on these exceptions has already been discoused.
The exceptions are however briefly referred to-
1.fitness for buyers purpose:
Where the buyers, expressly or by implication, makes known to the seller the particular purpose for which he requires the goods and relies on the sellers skill or judgement and the goods are of a description which it is in the course of business.
2.sale under a patent or trade name:
In the case of a contract for the sale of a specified article under its patent or other trade name, there is no implied condition that implied contract.
3.merchantable quality:
Where the goods are bought by the description from a seller who deals in goods of that description there is an implied condition that the goods shall be of marchantile quality.
This means let the buyer beware, in a contract of sale of goods the seller is under no duty to reveal unflating truths about the goods sold.therefore, when a person buyes some goods, he must examine them thoroughly, if the goods term out to be defective or do not suit his purpose or if he depends upon his own skill or judgement and makes a bad selection.
Exceptions:
The doctrine of coveat emptor his certain importance exceptions. The case law on these exceptions has already been discoused.
The exceptions are however briefly referred to-
1.fitness for buyers purpose:
Where the buyers, expressly or by implication, makes known to the seller the particular purpose for which he requires the goods and relies on the sellers skill or judgement and the goods are of a description which it is in the course of business.
2.sale under a patent or trade name:
In the case of a contract for the sale of a specified article under its patent or other trade name, there is no implied condition that implied contract.
3.merchantable quality:
Where the goods are bought by the description from a seller who deals in goods of that description there is an implied condition that the goods shall be of marchantile quality.
Wednesday, September 9, 2009
Iimplied warrenties.
Implied warrenties:
The implied warrenties ina contract of sale are as followes:
1.warrenty of qiuet possession:
In a contract of sale unless there is a contrary intention, there is an implied warrenty that the buyer shall have and enjoy quiet possession of the goods.
2.warrenty of freedom from encumbrances:
In addition to the previous warrenty, the buyer is entitled to a further warrenty that the goods are not subject to any charge or right in favour of the third party.
3.warrenty ro disclouse dangerous nature of goods:
Where a person sells goods knowing that the goods are inherently dangerous or they are likely to be dangerous to the buyer and that the buyer is ignorant of the liable of a damages.
Implied conditions and warrenties in a contract of sale may be negative or varied by
a. Express agreement between the parties.
b. The course of dealing.
c. The custom or usage of trade.
The implied warrenties ina contract of sale are as followes:
1.warrenty of qiuet possession:
In a contract of sale unless there is a contrary intention, there is an implied warrenty that the buyer shall have and enjoy quiet possession of the goods.
2.warrenty of freedom from encumbrances:
In addition to the previous warrenty, the buyer is entitled to a further warrenty that the goods are not subject to any charge or right in favour of the third party.
3.warrenty ro disclouse dangerous nature of goods:
Where a person sells goods knowing that the goods are inherently dangerous or they are likely to be dangerous to the buyer and that the buyer is ignorant of the liable of a damages.
Implied conditions and warrenties in a contract of sale may be negative or varied by
a. Express agreement between the parties.
b. The course of dealing.
c. The custom or usage of trade.
Implied conditions and warrenties.
Implied conditions and warrenties:
1.conditions as to quality or fitness:
Normally in a contract of sale there is no implied conditions as to quality or fitness of the goods for a particular purpose.the buyer must examine the goods throghly before he buys them in order to satisfy himself that the goods pupose.
Condition as to merchantability:
Where goods are bought by description from the seller who deals in goods of that description there is an implied condition that the goods are to be merchantile quality.
Condition implied by custom:
An implied condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.
Sale by sample:
A contract of sale is a contract for sale by sample where there is a trem in a contract, express or implied, to that effect condition-
Condition as to wholesomeness:
In the case of eatables and provisions, in addition to the implied condition as to merchantability, there is another implied condition that the goods shall be wholesome.
1.conditions as to quality or fitness:
Normally in a contract of sale there is no implied conditions as to quality or fitness of the goods for a particular purpose.the buyer must examine the goods throghly before he buys them in order to satisfy himself that the goods pupose.
Condition as to merchantability:
Where goods are bought by description from the seller who deals in goods of that description there is an implied condition that the goods are to be merchantile quality.
Condition implied by custom:
An implied condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.
Sale by sample:
A contract of sale is a contract for sale by sample where there is a trem in a contract, express or implied, to that effect condition-
Condition as to wholesomeness:
In the case of eatables and provisions, in addition to the implied condition as to merchantability, there is another implied condition that the goods shall be wholesome.
Express and implied conditions and warrenties.
Express and implied conditions and warrenties:
In a contract of sale of goods conditions and warrenties may be express or impied. Express conditions and warrenties are those which are expressly provided in the contract.
Implied conditions:
1.conditions as to title:
In a contract of sale, unless the circumstances of the contract are such as to show a different intension there is an implied condition the seller that-
a.in the case of a sale, he has a right to sell the goods and
b.in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.
2.sale by description:
Where there is a contract for the sale of goods by description, there is an implied conditions that the goods shall correspond with the description. The rule of law contained in the party to take beans.
In a contract of sale of goods conditions and warrenties may be express or impied. Express conditions and warrenties are those which are expressly provided in the contract.
Implied conditions:
1.conditions as to title:
In a contract of sale, unless the circumstances of the contract are such as to show a different intension there is an implied condition the seller that-
a.in the case of a sale, he has a right to sell the goods and
b.in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.
2.sale by description:
Where there is a contract for the sale of goods by description, there is an implied conditions that the goods shall correspond with the description. The rule of law contained in the party to take beans.
Express and implied conditions and warrenties.
Express and implied conditions and warrenties:
In a contract of sale of goods conditions and warrenties may be express or impied. Express conditions and warrenties are those which are expressly provided in the contract.
Implied conditions:
1.conditions as to title:
In a contract of sale, unless the circumstances of the contract are such as to show a different intension there is an implied condition the seller that-
a.in the case of a sale, he has a right to sell the goods and
b.in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.
2.sale by description:
Where there is a contract for the sale of goods by description, there is an implied conditions that the goods shall correspond with the description. The rule of law contained in the party to take beans.
In a contract of sale of goods conditions and warrenties may be express or impied. Express conditions and warrenties are those which are expressly provided in the contract.
Implied conditions:
1.conditions as to title:
In a contract of sale, unless the circumstances of the contract are such as to show a different intension there is an implied condition the seller that-
a.in the case of a sale, he has a right to sell the goods and
b.in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.
2.sale by description:
Where there is a contract for the sale of goods by description, there is an implied conditions that the goods shall correspond with the description. The rule of law contained in the party to take beans.
Conditions and warrenties.
Conditions and warrenties:
Before a contract of sale is entered into, a seller frequently makes representatives or statements with reference to the goods which influence the buyer to clinch the bargain. Such representation or statements differ in cherecter and importance. Whether any statement or stipulation forming part of the contract or is a mere representation of the contract.
A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warrenty.
Condition:
A condition is a stipulation which is essential there cace main pupose of the contract of such vital importance as aroot of the contract. Its non-fulfillment upsets the very basis of the contract.
Warrenty:
A warrenty is a stipulation which is collateral to the main purpose of the contract. It is not such vital importance as a condition is. The agreegated in party only damaged and it has no-right to treat the contract as reputed.
Before a contract of sale is entered into, a seller frequently makes representatives or statements with reference to the goods which influence the buyer to clinch the bargain. Such representation or statements differ in cherecter and importance. Whether any statement or stipulation forming part of the contract or is a mere representation of the contract.
A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warrenty.
Condition:
A condition is a stipulation which is essential there cace main pupose of the contract of such vital importance as aroot of the contract. Its non-fulfillment upsets the very basis of the contract.
Warrenty:
A warrenty is a stipulation which is collateral to the main purpose of the contract. It is not such vital importance as a condition is. The agreegated in party only damaged and it has no-right to treat the contract as reputed.
Difference between a condition and warrenties.
Difference between a condition and warrenty:
1.diiference as to value:
A condition is a stipulation which is essentials to the main purpose of the main of the contract.a warrenty is a stipulation which is main contract.
2.diiference as to breach:
If there is a breach of a contract the aggrieved party can reputed the contract of sale; in case of a breach a warrenty.
3.difference as to treatment:
A breach of a condition may be treated as a breach of contract this would happen where the aggrieved party is contented with damages only.
When condition to be treated as warrenty:
1.voluentary waiver of condition:
Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may insiston its fulfillment.
2.acceptence of goods by buyer:
Where a contract of a sale is not severable and the buyer has a acceptedthe goods or part there, the breach of any condition to be fulfilled by the seller can implied.
1.diiference as to value:
A condition is a stipulation which is essentials to the main purpose of the main of the contract.a warrenty is a stipulation which is main contract.
2.diiference as to breach:
If there is a breach of a contract the aggrieved party can reputed the contract of sale; in case of a breach a warrenty.
3.difference as to treatment:
A breach of a condition may be treated as a breach of contract this would happen where the aggrieved party is contented with damages only.
When condition to be treated as warrenty:
1.voluentary waiver of condition:
Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may insiston its fulfillment.
2.acceptence of goods by buyer:
Where a contract of a sale is not severable and the buyer has a acceptedthe goods or part there, the breach of any condition to be fulfilled by the seller can implied.
Tuesday, September 8, 2009
Sale by non-owners.
Sale by non-owners:
The general rule of law is that “no one can give that which one has not got”. This is expressed in latin maxim “nemo dat qut non habet”.
Exceptions:
1.sale by a person not the owner or title by estoppels.where the owner by his contract or by an act or omission.
2.sale by a mercantile agent: a mercantile agent is one who, in the customary course of his business, has, as such agent authority either to sell goods.
3.sale by one of several joint owners: if one of the several joint owners who is in sole profession under a voidable contract.
4.sale by a-person in possession under a voidable contract: when the seller a goods has obtained their possession under the other co-owners sells the goods.
5.sale by seller in possession after sale: where the seller having sold the consent of the seller, possession of the goods or documents.
6..sale by an unpaid seller: where an unpaid seller who has excercised his right of lien or stoppage in transit re-sults the goods, the buyer acqiuers a good title the original buyer.goods, continues to be in possession of the goods or of the documents of title to the goods and sells them either himself or through a mercantile agent.
7..sale by buyer in possession after having bought or agreed to buy goods: where a person, having bought or agreed to buy goods, obtained with
The general rule of law is that “no one can give that which one has not got”. This is expressed in latin maxim “nemo dat qut non habet”.
Exceptions:
1.sale by a person not the owner or title by estoppels.where the owner by his contract or by an act or omission.
2.sale by a mercantile agent: a mercantile agent is one who, in the customary course of his business, has, as such agent authority either to sell goods.
3.sale by one of several joint owners: if one of the several joint owners who is in sole profession under a voidable contract.
4.sale by a-person in possession under a voidable contract: when the seller a goods has obtained their possession under the other co-owners sells the goods.
5.sale by seller in possession after sale: where the seller having sold the consent of the seller, possession of the goods or documents.
6..sale by an unpaid seller: where an unpaid seller who has excercised his right of lien or stoppage in transit re-sults the goods, the buyer acqiuers a good title the original buyer.goods, continues to be in possession of the goods or of the documents of title to the goods and sells them either himself or through a mercantile agent.
7..sale by buyer in possession after having bought or agreed to buy goods: where a person, having bought or agreed to buy goods, obtained with
Sale by non-owners.
Sale by non-owners:
The general rule of law is that “no one can give that which one has not got”. This is expressed in latin maxim “nemo dat qut non habet”.
Exceptions:
1.sale by a person not the owner or title by estoppels.where the owner by his contract or by an act or omission.
2.sale by a mercantile agent: a mercantile agent is one who, in the customary course of his business, has, as such agent authority either to sell goods.
3.sale by one of several joint owners: if one of the several joint owners who is in sole profession under a voidable contract.
4.sale by a-person in possession under a voidable contract: when the seller a goods has obtained their possession under the other co-owners sells the goods.
5.sale by seller in possession after sale: where the seller having sold the consent of the seller, possession of the goods or documents.
6..sale by an unpaid seller: where an unpaid seller who has excercised his right of lien or stoppage in transit re-sults the goods, the buyer acqiuers a good title the original buyer.goods, continues to be in possession of the goods or of the documents of title to the goods and sells them either himself or through a mercantile agent.
7..sale by buyer in possession after having bought or agreed to buy goods: where a person, having bought or agreed to buy goods, obtained with
The general rule of law is that “no one can give that which one has not got”. This is expressed in latin maxim “nemo dat qut non habet”.
Exceptions:
1.sale by a person not the owner or title by estoppels.where the owner by his contract or by an act or omission.
2.sale by a mercantile agent: a mercantile agent is one who, in the customary course of his business, has, as such agent authority either to sell goods.
3.sale by one of several joint owners: if one of the several joint owners who is in sole profession under a voidable contract.
4.sale by a-person in possession under a voidable contract: when the seller a goods has obtained their possession under the other co-owners sells the goods.
5.sale by seller in possession after sale: where the seller having sold the consent of the seller, possession of the goods or documents.
6..sale by an unpaid seller: where an unpaid seller who has excercised his right of lien or stoppage in transit re-sults the goods, the buyer acqiuers a good title the original buyer.goods, continues to be in possession of the goods or of the documents of title to the goods and sells them either himself or through a mercantile agent.
7..sale by buyer in possession after having bought or agreed to buy goods: where a person, having bought or agreed to buy goods, obtained with
Contract invilved legal procedure.
Contracts involving sea routes:
In contracts of sale which involve sea rutes certain special clauses and conditions are to be found. The meaning of these clauses has been standard to an extent in accordance with the international customes and practices merchant.
F.A.S contracts:
F .A.S stands for free alongside ship. The property in goods sold under an fas contract passes from the seller to the buyer when the goods are delivered carriage.
Sellers duties:
1. To deliver the goods alongside ship.
2. To notify the buyer immediately that the good have been delivered.
Buyers duties:
1.to arrange for the contract of affreightment.
2.To notify give the seller sufficient notice of the name of the ship and time of delivery.
3.to pay all charges and to bear all risks from the time the goods are delivered alongside the ship.
In contracts of sale which involve sea rutes certain special clauses and conditions are to be found. The meaning of these clauses has been standard to an extent in accordance with the international customes and practices merchant.
F.A.S contracts:
F .A.S stands for free alongside ship. The property in goods sold under an fas contract passes from the seller to the buyer when the goods are delivered carriage.
Sellers duties:
1. To deliver the goods alongside ship.
2. To notify the buyer immediately that the good have been delivered.
Buyers duties:
1.to arrange for the contract of affreightment.
2.To notify give the seller sufficient notice of the name of the ship and time of delivery.
3.to pay all charges and to bear all risks from the time the goods are delivered alongside the ship.
When the approvel of delivery of goods.
1.when the significance of approvel sellin gand delivery.
2.when the does any other act adopting the transaction;
3.if he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, beyond the time fixed for the return of the goods, or if no time has been fixed, beyond a reasonable time.
When goods are delivered to the buyers on approvel or sale or return or other similar terms, the
property there in passes to the buyer:
1.when he signifies his approvel or acceptance to the seller;
Reservation of right of disposal:
The property in goods, whether specific or subsequently appropriated to the contract, does not pass to the buyer if the seller reserves the right of disposel of the goods until certain conditions are fulfilled.
1.where goods are shipped or delivered to a railway for carriage and by the bill of lading or railway receipt they are deliverable to the order of the seller or his agent.
2.where the seller sends a bill of exchange for the price of the goods to the buyer for his acceptance, together with the bill of lading or railway receipt.
2.when the does any other act adopting the transaction;
3.if he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, beyond the time fixed for the return of the goods, or if no time has been fixed, beyond a reasonable time.
When goods are delivered to the buyers on approvel or sale or return or other similar terms, the
property there in passes to the buyer:
1.when he signifies his approvel or acceptance to the seller;
Reservation of right of disposal:
The property in goods, whether specific or subsequently appropriated to the contract, does not pass to the buyer if the seller reserves the right of disposel of the goods until certain conditions are fulfilled.
1.where goods are shipped or delivered to a railway for carriage and by the bill of lading or railway receipt they are deliverable to the order of the seller or his agent.
2.where the seller sends a bill of exchange for the price of the goods to the buyer for his acceptance, together with the bill of lading or railway receipt.
Specific passing of delivery.
1.specific goods:
The rules relating to transfer of property in specific goods are as follows:
1.passing of property at the time of contract:
Where there is an unconditional contract for the sale of specific goods in adeliverable state, the property in the goods passes to the buyer when the contract is made.
2.unascertained goods:
Where there is a contract for the sale of unascertained goods the property in the goods does notpass to the buyer until the good are ascertained is merely an agreement t o sell.
Delivery to carrier:
A seller is deemed to have unconditionally appropriated the goods to the contract where he delivers them to the buyer or to a carrier or other balance.
The rules relating to transfer of property in specific goods are as follows:
1.passing of property at the time of contract:
Where there is an unconditional contract for the sale of specific goods in adeliverable state, the property in the goods passes to the buyer when the contract is made.
2.unascertained goods:
Where there is a contract for the sale of unascertained goods the property in the goods does notpass to the buyer until the good are ascertained is merely an agreement t o sell.
Delivery to carrier:
A seller is deemed to have unconditionally appropriated the goods to the contract where he delivers them to the buyer or to a carrier or other balance.
Passing of delivery.
Passing of property:
The primary rules for ascertaining when the property in goods passes to the buyer are as follows.
1.goods must be asbertained:
Were there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are uncertained.
2.intention of the parties:
Wher for the sale of specific there is a contract ascertained goods, the property in them passes to the buyer at the time when the parties intend it to pass.
Where the intention of the parties cannot be ascertained, where the intention of the parties as to the time when the property in the goods is to pass to the buyer cannot be ascetrtained from the contract, the rules contained in the rules.
The primary rules for ascertaining when the property in goods passes to the buyer are as follows.
1.goods must be asbertained:
Were there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are uncertained.
2.intention of the parties:
Wher for the sale of specific there is a contract ascertained goods, the property in them passes to the buyer at the time when the parties intend it to pass.
Where the intention of the parties cannot be ascertained, where the intention of the parties as to the time when the property in the goods is to pass to the buyer cannot be ascetrtained from the contract, the rules contained in the rules.
Monday, September 7, 2009
Transfer of property.
Transfer of property
Property, possession and risk:
There are three stages in the performance of a contract of sale of goods by a seller, viz,
1.the transfer of property in the goods;
2.the transfer of possession of the goods;
3.the passing of the risk.
Transfer of property in goods from the seller to the buyer is the main object of a contract of sale. The term property in goods must be ownership of goods property in goods refers to the custody or controle of goods.
It is important to know the presize moment of time at which the property in goods passes from the seller to the buyer for the following reasons:
1.risk followes ownership
2.action against third parties.
3.insolvancy of the seller or the buyer.
4.suit for prices.
Property, possession and risk:
There are three stages in the performance of a contract of sale of goods by a seller, viz,
1.the transfer of property in the goods;
2.the transfer of possession of the goods;
3.the passing of the risk.
Transfer of property in goods from the seller to the buyer is the main object of a contract of sale. The term property in goods must be ownership of goods property in goods refers to the custody or controle of goods.
It is important to know the presize moment of time at which the property in goods passes from the seller to the buyer for the following reasons:
1.risk followes ownership
2.action against third parties.
3.insolvancy of the seller or the buyer.
4.suit for prices.
Duties of the buyer.
Duties of the buyer
1.duty to accept the goods and pay for them in he terms of the exchange for possession. It is the duty of the buyer to accept the goods and pay for them, in accordance with the contract of sale of exchange.
2.duty to apply for delivery apart from any express contract, it is the duty of the buyer to apply for delivery.
3.duty to demand delivery at a reasonable hour it is the duty of buyer to demand delivery at a reasonable hour.
4.duty to accept instalment delivery and pay for it refer to point rules as to delivery.
5.duty to take risk of deterioration in the course of transit where the seller of seller of goods ag increes to delivery them at his own risk at a place other than where they are sold, the buyer shall take any risk of deterioration in goods in this regard.
6.duty intimate the seller where he rejects the goods unless otherwise agreed, it is the duty of the buyer to inform the seller in case he refuse to accept the goods.
7.duty to take delivery it is the duty of the buyer to take delivery of the goods within a reasonable time after the tender of delivery.
1.duty to accept the goods and pay for them in he terms of the exchange for possession. It is the duty of the buyer to accept the goods and pay for them, in accordance with the contract of sale of exchange.
2.duty to apply for delivery apart from any express contract, it is the duty of the buyer to apply for delivery.
3.duty to demand delivery at a reasonable hour it is the duty of buyer to demand delivery at a reasonable hour.
4.duty to accept instalment delivery and pay for it refer to point rules as to delivery.
5.duty to take risk of deterioration in the course of transit where the seller of seller of goods ag increes to delivery them at his own risk at a place other than where they are sold, the buyer shall take any risk of deterioration in goods in this regard.
6.duty intimate the seller where he rejects the goods unless otherwise agreed, it is the duty of the buyer to inform the seller in case he refuse to accept the goods.
7.duty to take delivery it is the duty of the buyer to take delivery of the goods within a reasonable time after the tender of delivery.
8.duty to pay price where property in goods has passed to the buyer it is duty to pay the price according to the term of the contract.
Duties of the buyer.
Duties of the buyer
1.duty to accept the goods and pay for them in he terms of the exchange for possession. It is the duty of the buyer to accept the goods and pay for them, in accordance with the contract of sale of exchange.
2.duty to apply for delivery apart from any express contract, it is the duty of the buyer to apply for delivery.
3.duty to demand delivery at a reasonable hour it is the duty of buyer to demand delivery at a reasonable hour.
4.duty to accept instalment delivery and pay for it refer to point rules as to delivery.
5.duty to take risk of deterioration in the course of transit where the seller of seller of goods ag increes to delivery them at his own risk at a place other than where they are sold, the buyer shall take any risk of deterioration in goods in this regard.
6.duty intimate the seller where he rejects the goods unless otherwise agreed, it is the duty of the buyer to inform the seller in case he refuse to accept the goods.
7.duty to take delivery it is the duty of the buyer to take delivery of the goods within a reasonable time after the tender of delivery.
8.duty to pay price where property in goods has passed to the buyer it is duty to pay the price according to the term of the contract.
1.duty to accept the goods and pay for them in he terms of the exchange for possession. It is the duty of the buyer to accept the goods and pay for them, in accordance with the contract of sale of exchange.
2.duty to apply for delivery apart from any express contract, it is the duty of the buyer to apply for delivery.
3.duty to demand delivery at a reasonable hour it is the duty of buyer to demand delivery at a reasonable hour.
4.duty to accept instalment delivery and pay for it refer to point rules as to delivery.
5.duty to take risk of deterioration in the course of transit where the seller of seller of goods ag increes to delivery them at his own risk at a place other than where they are sold, the buyer shall take any risk of deterioration in goods in this regard.
6.duty intimate the seller where he rejects the goods unless otherwise agreed, it is the duty of the buyer to inform the seller in case he refuse to accept the goods.
7.duty to take delivery it is the duty of the buyer to take delivery of the goods within a reasonable time after the tender of delivery.
8.duty to pay price where property in goods has passed to the buyer it is duty to pay the price according to the term of the contract.
Rights and duties of the buyer.
Rights and duties of the buyer:
Rights of the buyer
1.right to reject the goods if the seller sends to the buyer a larger or smaller quantity of goods than he ordered.
2.right to have delivery as per contract the first right of the buyer is to have delivery of the goods as per contract.
3.right to repudiate unless otherwise agreed, the buyer of goods has a right not to accept delivery thereof by instalments. This has already been explained in detail.
4.right to notice of insurance unless the otherwise agreed where goods are sent by the seller to the buyer by asea route, the buyer has a right to be informed by the seller so that he may get the goods insured.
5.right to examine. The buyer has a right to examine the goods which he has not previously examined before he accepted them the seller is bound to affored the buyer a reasonable opportunity of conformanity with the contract.
Rights of the buyer
1.right to reject the goods if the seller sends to the buyer a larger or smaller quantity of goods than he ordered.
2.right to have delivery as per contract the first right of the buyer is to have delivery of the goods as per contract.
3.right to repudiate unless otherwise agreed, the buyer of goods has a right not to accept delivery thereof by instalments. This has already been explained in detail.
4.right to notice of insurance unless the otherwise agreed where goods are sent by the seller to the buyer by asea route, the buyer has a right to be informed by the seller so that he may get the goods insured.
5.right to examine. The buyer has a right to examine the goods which he has not previously examined before he accepted them the seller is bound to affored the buyer a reasonable opportunity of conformanity with the contract.
Acceptence of delivery.
Acceptance of delivery:
Receipt of goods by the buyer does not necessarily result in acceptance of goods by him under, and in performance of, the contract of sale acceptance is something more than mere receipt or taking possession of the goods by the buyer.
It means the final assent by the buyer that he has refceived the goods under, and in performance of, the contract of sale. If he wrongfully refuses to accept the goods under the contract, he is liable for damages.
The buyer is deemed to have accepted the goods-
1.when he intimates to the seller that he has accepted the goods.
2.when the goods have been delivered to him and he does any act in relation to them which is inconsistent with the ownership of the seller as for instenses.
3.when after the lapse of a reasonable time he retains the goods without intimation to the seller that he has rejected them.
Buyers liability for rejecting, neglating or refusing delivery:
Buyers liability in case of rejuction of goods, unless otherwise agreed where goods are delivered to the buyer and he rejects them, he is not bound to return them to the seller.
Receipt of goods by the buyer does not necessarily result in acceptance of goods by him under, and in performance of, the contract of sale acceptance is something more than mere receipt or taking possession of the goods by the buyer.
It means the final assent by the buyer that he has refceived the goods under, and in performance of, the contract of sale. If he wrongfully refuses to accept the goods under the contract, he is liable for damages.
The buyer is deemed to have accepted the goods-
1.when he intimates to the seller that he has accepted the goods.
2.when the goods have been delivered to him and he does any act in relation to them which is inconsistent with the ownership of the seller as for instenses.
3.when after the lapse of a reasonable time he retains the goods without intimation to the seller that he has rejected them.
Buyers liability for rejecting, neglating or refusing delivery:
Buyers liability in case of rejuction of goods, unless otherwise agreed where goods are delivered to the buyer and he rejects them, he is not bound to return them to the seller.
Delivery of wrong quality.
Delivery of wrong quantity:
The delivery of the quantity of goods constructed for should be strictly according to the terms of the contract. A defective delivery entitles the buyer to reject the goods. The three different contingencies which may be arises in case of defective delivery.
1.delivery of goods less than contructed for:
Where the seller delivers to the buyer a quantity of goods less than he contracted to sell,the buyer may reject the goods.
2.delivery of goods in excess of quantity:
Where the seller delivers to the buyers a quantity of goods larger than he contructed to sell, the buyer may1.accept the whole: or 2.reject the whole. He must pay for them at the contract rate.
3.delivery of goods contracted for mixed with other goods:
Where the seller delivers to the buyer the goods he constructed to sell mixed with goods of a different description the buyer may accept the goods with the contract.
The delivery of the quantity of goods constructed for should be strictly according to the terms of the contract. A defective delivery entitles the buyer to reject the goods. The three different contingencies which may be arises in case of defective delivery.
1.delivery of goods less than contructed for:
Where the seller delivers to the buyer a quantity of goods less than he contracted to sell,the buyer may reject the goods.
2.delivery of goods in excess of quantity:
Where the seller delivers to the buyers a quantity of goods larger than he contructed to sell, the buyer may1.accept the whole: or 2.reject the whole. He must pay for them at the contract rate.
3.delivery of goods contracted for mixed with other goods:
Where the seller delivers to the buyer the goods he constructed to sell mixed with goods of a different description the buyer may accept the goods with the contract.
Rules as to delivery goods.
Rules as to delivery of goods:
1.mode of delivery:
delivery should be have the effect of putting the goods in the possession of the buyer or his duly authorized agent delivery of goods may be
1.actual; 2. Constructive; 3. Symbolic.
2.delivery and payment:
delivery of the goods and payment of the price must be according to the terms of the contract. Unless otherwise agreed, delivered of the goods and payment of the price and conditions.
3.effect of part delivery:
a delivery of part of the goods in progress of the delivery of the whole, has the same effect for the purpose of passing the property in the such goods, a delivery of the hole.
4.buyer to apply:
apart from any express contract, the seller of goods is not bound to deliver them until the buyer applies for delivery where the goods are subsequently acquired by the seller should be then apply for delivery.
5.time of delivery:
Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time of fact.
1.mode of delivery:
delivery should be have the effect of putting the goods in the possession of the buyer or his duly authorized agent delivery of goods may be
1.actual; 2. Constructive; 3. Symbolic.
2.delivery and payment:
delivery of the goods and payment of the price must be according to the terms of the contract. Unless otherwise agreed, delivered of the goods and payment of the price and conditions.
3.effect of part delivery:
a delivery of part of the goods in progress of the delivery of the whole, has the same effect for the purpose of passing the property in the such goods, a delivery of the hole.
4.buyer to apply:
apart from any express contract, the seller of goods is not bound to deliver them until the buyer applies for delivery where the goods are subsequently acquired by the seller should be then apply for delivery.
5.time of delivery:
Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time of fact.
Performence of contract.
Performance of contract:
Performance of contract of sale means as regards the seller, delivery of the goods to the buyer, and as regards the buyer, acceptance of the delivery of the goods and payment for them of the contract of sale.
A contract of sale always involves reciprocal promises the seller promising to deliver the goods and the buyer promising to accept and pay for them. In the absence of a contract to the country they are to be perform simultaneously and each party should be ready willing promise.
Delivery of goods:
Delivery means voluentry transfer of possestion of goods from one person to another delivery of goods sold may be made by doing any thing which the paties agree shall be treated buyer of his agent.
Delivery of goods may be actual, symbolic, or constructive:
1.actual delivery
2.symbalic delivery.
3.constructive delivery by attornment .
Such order and transfer the goods in his books to this is a delivery by attornment.
Performance of contract of sale means as regards the seller, delivery of the goods to the buyer, and as regards the buyer, acceptance of the delivery of the goods and payment for them of the contract of sale.
A contract of sale always involves reciprocal promises the seller promising to deliver the goods and the buyer promising to accept and pay for them. In the absence of a contract to the country they are to be perform simultaneously and each party should be ready willing promise.
Delivery of goods:
Delivery means voluentry transfer of possestion of goods from one person to another delivery of goods sold may be made by doing any thing which the paties agree shall be treated buyer of his agent.
Delivery of goods may be actual, symbolic, or constructive:
1.actual delivery
2.symbalic delivery.
3.constructive delivery by attornment .
Such order and transfer the goods in his books to this is a delivery by attornment.
Rules for auction sale
Rules of auction sales:
1.goods put up for sale in lots:
Where goods are put up for sale in lots each lot is prima facie deemed to be subject of a separate contract of sale.
2.completion of sale:
The sale is complete when the auctioner announcer its completion by the fall of the hummer or in some other customery manner like one two three or going gone such intrecter.
3.right of seller to bid:
A right to bid may be reserved expressly by or on behalf of the seller. Where such right is expressly reserved the seller or any one person on his behalf may bid at the auction.
4.use of pretended bidding:
If the seller makes use of pretended bidding to rise the price the sale is voidable at the option of the buyer.
Implied warranties in an auction sale:
When an auctioner sells goods he impliedly undertakes the following obligation.
1.goods put up for sale in lots:
Where goods are put up for sale in lots each lot is prima facie deemed to be subject of a separate contract of sale.
2.completion of sale:
The sale is complete when the auctioner announcer its completion by the fall of the hummer or in some other customery manner like one two three or going gone such intrecter.
3.right of seller to bid:
A right to bid may be reserved expressly by or on behalf of the seller. Where such right is expressly reserved the seller or any one person on his behalf may bid at the auction.
4.use of pretended bidding:
If the seller makes use of pretended bidding to rise the price the sale is voidable at the option of the buyer.
Implied warranties in an auction sale:
When an auctioner sells goods he impliedly undertakes the following obligation.
Auction of sale
Auction sales:
A sales by auction is a public sale where different intencing buyers try to outbid each other. The goods are ultimately sold to the highest bidder. The actioner who sells the goods by auction is an agent of the seller, the owner.his relationship with the owner of the goods is governed by the general principles of the law relating to agency.
Procedure in auction sales:
The usual procedure in case of auction sales is as follows:
The proposed auction is duly advertised and a printed catalogue of the goods together with the terms of sale is circulated.on the appointed day and time, the intending buyers assemble and the intending buyers.
Rules of auction sales:
The law on auction sales is contained in the sale of goods act.in case of a sale by auction the following rules apply.
A sales by auction is a public sale where different intencing buyers try to outbid each other. The goods are ultimately sold to the highest bidder. The actioner who sells the goods by auction is an agent of the seller, the owner.his relationship with the owner of the goods is governed by the general principles of the law relating to agency.
Procedure in auction sales:
The usual procedure in case of auction sales is as follows:
The proposed auction is duly advertised and a printed catalogue of the goods together with the terms of sale is circulated.on the appointed day and time, the intending buyers assemble and the intending buyers.
Rules of auction sales:
The law on auction sales is contained in the sale of goods act.in case of a sale by auction the following rules apply.
Remedies for breach of contract
The sale of goods act gives the following remedies to a seller and a buyer for breach of a contract of sale:
1.seller’s suits:
1.suit for price.
2.suit for damages for non-acceptence of the goods.
3.suit for damages for reputation of contract by the buyer before due date.
4.suit for intrest.
2.buyer’s suits:
1.suit for damages for non-delivery of the goods.
2.suit for specific performance.
3.suit for breach of warrenty.
4.suit for damages for reputation of contract by the seller before due date.
5.suit for intrest.
All these remedies have already been discoused.
1.seller’s suits:
1.suit for price.
2.suit for damages for non-acceptence of the goods.
3.suit for damages for reputation of contract by the buyer before due date.
4.suit for intrest.
2.buyer’s suits:
1.suit for damages for non-delivery of the goods.
2.suit for specific performance.
3.suit for breach of warrenty.
4.suit for damages for reputation of contract by the seller before due date.
5.suit for intrest.
All these remedies have already been discoused.
Remedies for breach of contract
The sale of goods act gives the following remedies to a seller and a buyer for breach of a contract of sale:
1.seller’s suits:
1.suit for price.
2.suit for damages for non-acceptence of the goods.
3.suit for damages for reputation of contract by the buyer before due date.
4.suit for intrest.
2.buyer’s suits:
1.suit for damages for non-delivery of the goods.
2.suit for specific performance.
3.suit for breach of warrenty.
4.suit for damages for reputation of contract by the seller before due date.
5.suit for intrest.
All these remedies have already been discoused.
1.seller’s suits:
1.suit for price.
2.suit for damages for non-acceptence of the goods.
3.suit for damages for reputation of contract by the buyer before due date.
4.suit for intrest.
2.buyer’s suits:
1.suit for damages for non-delivery of the goods.
2.suit for specific performance.
3.suit for breach of warrenty.
4.suit for damages for reputation of contract by the seller before due date.
5.suit for intrest.
All these remedies have already been discoused.
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