Sale of Goods Act

1. Contract of Sale
A contract of sale of goods, like any other contract, results by an offer by one
party and its acceptance by the other. It is a contract whereby the seller transfers
or agrees to transfer the property in goods to the buyer for a price.
2. Essentials of a contract of sale
It is a contract
Between two parties
To transfer or agree to transfer the property
In goods
For a price, that is money consideration
3. Sale & Agreement to Sell A comparison
4. Document of Title to goods

5. Conditions & Warranties

Condition
A condition is a stipulation essential to the main purpose of the contract, the breach
of which gives rise to a right to treat the contract as repudiated.
A condition forms very basis of a contract of sale, the breach of which causes
irreparable damage to the buyer, and he has a right to terminate the contract of sale
entitling him to return the goods and get the refund of the price paid.

Warranty
A warranty is a stipulation collateral to the main purpose of the contract, the breach
of which gives rise to claim for damages but not the right to reject the goods.
The consequence of its breach is milder. In case of its breach, the buyer cannot
terminate the contract; however, he can claim damages for the loss suffered by him
resulting from such breach.

6. Implied Conditions
Condition as to title
Condition in a sale of description
Conditions in sale by sample
Condition as to fitness or quality
Condition as to merchantability
Condition as to wholesomeness
7. Implied Warranties
Warranty as to quiet possession
Warranty as to non-existence of encumbrances
Warranty as to disclosure of dangerous nature of the goods to the innocent buyer
Warranties implied by custom
8. Doctrine of Caveat Emptor
Caveat Emptor means let the buyer beware. This doctrine says that when a buyer
purchases a product, he himself is responsible to see whether he is buying a right thing
suited to his purpose or not. If he makes a bad bargain, he cannot hold seller responsible
for this

9. Exceptions to the doctrine of caveat emptor

When the seller makes a misrepresentation of fact regarding the product, and the
buyer relies upon it and buys the product, the rule of caveat emptor does not
apply.
Where seller actively conceals a defect in the goods which could not be revealed
by ordinary examination, the rule of caveat emptor does not apply. The buyer has
a right to rescind such a contract and claim damages.
Where goods are supplied by description and they do not correspond with
description, the rule of caveat emptor does not apply.
Where the buyer relies upon skill and judgment of the seller and makes his
purpose of buying the product known to him and goods turn out to be unfit for his
use, the rule of caveat emptor would not apply.

Consumer Protection Law

1.

Basic Scheme of the Act

2.

Objects of CPA
- Better protection of consumers
- Settlement of consumer disputes
- Establishment of consumer councils
- To pave the way for simple, easy & quick remedy
to consumers

Consumer Protection Law

3.

Rights of consumers
- to be protected against marketing of goods which are
hazardous to life and property
- to be informed about quality, quantity, potency, standard,
price so as to protect against UTP
- to be assured of access to variety of goods & services at
competitive prices
- to be heard that consumers interest will receive due
consideration
- to seek redressal against UTP / RTP
- right to consumer education

Consumer Protection Law

4. Contract of Service & Contract for Service
5.

Supreme Court Conclusions on Medical Profession

6. Consumer Protection Council

- Central Consumer Protection Council
- State Consumer Protection Council

Consumer Protection Law

7. Remedial Machinery under the Act
-District Forum
-State Commission
-National Commission
8. Powers of Redressal Agencies
- summoning & enforcing attendances of any defendant /
witness
- production of documents as evidence through affidavit
- any other matter as may be prescribed

Consumer Protection Law

9. Nature & Scope of Remedies under the Act
- to remove the defects from goods in question
- to replace the goods with new goods
- to return the price or charges paid
- to pay the compensation awarded
- to remove the deficiencies in services
- to discontinue UTP / RTP
- to provide adequate costs to parties
10. Appeals

Consumer Protection Law

11. Cases under CPA
- M.N. Narasimha Reddy Vs MD, Maruti Udyog
- Harjot Ahluwalia Vs Spring Meadows Hospital
- Union of India Vs Sunil Kumar Goyal
- Airpack Couriers (India) Pvt Ltd Vs S. Suresh

Ltd.

Consumer Protection Law

Consumer Protection Law

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