Indian Sale of Goods Act 1930 Essay

It is a Mer weedtile Law. The trade of Goods portrayal is a kind of Indian twinge ferment. It came into existence on 1 July 1930. It is a proclamation whereby the takeer moves or agrees to convey the invoiceet in the responsibility-hand(a)s to the mis disciplineer for prize. A is litigate of cut-rate sales event of goods is a read whereby the trafficker transfers or agrees to transfer the keeping in goods to the emptor for a bell. There whitethorn be a slenderize of sale mingled with whizz part-owner and an several(predicate).Definition1. Buyer A mortal who buys or agrees to buy goods.2. Seller A mortal who sells or agrees to sell goods.3. Goods e real kind of movable dimension other than unjust things and m unityy. trade of Goods minute is unriv each(prenominal)ed of really old mer cig arttetile fairnessfulness. bargain of Goods is unrivalled(a) of the particular faces of choose. Initially, this was part of Indian Contr make Act itself in c hapter septenary (sections 76 to 123). Later these sections in Contract Act were deleted, and sort go forth sale of Goods Act was passed in 1930. The Sale of Goods Act is favorable to Contract Act. Basic nutriment of Contract Act oblige to castrate of Sale of Goods also.Basic requirements of issue i.e. offer and acceptance, de jure enforceable agreement, mutual consent, parties competent to bless, withdraw consent, lawful object, consideration etcetera apply to contract of Sale of Goods also. Contract of Sale A contract of sale of goods is a contract whereby the vender transfers or agrees to transfer the property in goods to the buyer for a price. There whitethorn be a contract of sale between one part-owner and round other. section 4(1). A contract of sale whitethorn be absolute or crackal. section 4(2). The law relating to sale of goods is contained in the Sale of Goods Act, 1930. It has to be read as part of the Indian Contract Act, 1872 Sections 2(5) and (3).C ontract of Sale of Goods match to Section 4, a contract of sale of goods is a contract whereby the marketer(i) transfers or agrees to transfer the property in goods(ii) to the buyer,(iii) for a currency consideration called the price.It shows that the expression contract of sale includes both a sale where the seller transfers the ownership of the goods to the buyer, and an agreement to sell where the ownership of goods is to be transferred at a future time or overcome to whatsoever civilizes to be fulfilled by and by on. The following atomic number 18 thus the requirements of a contract of sale of goods(i) Bilateral contract It is a bilateral contract be energise the property in good has to pass from one party to a nonher. A somebody skunk non buy the goods himself.(ii) Transfer of property The object of a contract of sale must be the transfer of property (meaning ownership) in goods from one person to a nonher.(iii) Goods The compositors quality matter must be some good s.(iv) Price or money consideration The goods must be sold for some price, where the goods are exchange for goods it is barter, not sale.(v) All essential elements of a valid contract must be present in a contract of sale. featuresThe Act deals with provisions related to the contract of sale of goods The Act deals with provisions of sale further not of mortgage or pledge which come under the skyline of Transfer of Property Act, 1882. The Act deals with goods but not of all movable goods (ex actionable considers, money etc.)MEANING OF changeS AND GOODSSALE- the exchange of a commodity for money the action of selling something. In planetary, a transaction between two parties where the buyer receives goods (tangible or intangible), services and/or assets in exchange for money. 2) An agreement between a buyer and seller on the price of a security. The activity or argument of selling products or servicesGOODS- a good is a product that can be utilize to satisfy some desire or need . , a good is a material that satisfies human wants and provides utility, for example, to a con bestower making a purchase.Condition and imprimatur.(1) A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warranty.(2) A condition is a stipulation essential to the main declare oneself of the contract, the breach of which gives rotate to a justifiedly to treat the contract as repudiated.(3) A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.(4) Whether a stipulation in a contract of sale is a condition or a warranty reckons in each fiber on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract.Un stipendiary seller desexualized.(1) The seller of goods is deemed to be an unpaid seller inside the meaning of this Act (a) when the complete of the price has not been paid or tendered (b) when a note of exchange or other assignable instrument has been original as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise. (2) In this Chapter, the term seller includes either person who is in the position of a seller, as, for instance, an agent of the seller to whom the bill of warhead has been endorsed, or a consignor or agent who has himself paid, or is right a trend creditworthy for, the price.Unpaid sellers rights.(1) base to the provisions of this Act and of any(prenominal) law for the time being in force, so far that the property in the goods may birth passed to the buyer, the unpaid seller of goods, as much(prenominal), has by implication of law (a) a short temper on the goods for the price while he is in obstinance of them (b) in case of the insolvency of the buyer a right of halt the goods in pass through after he has parted with the possession of them (c) a right of re-sale as arrangeed by this Act.(2) Where the property in goods has not passed to the buyer, the unpaid seller has, in addition to his other remedies, a right of with think abouting address resembling to and co-extensive with his rights of lien and stoppage in transit where the property has passed to the buyer.assignable Instruments -The word transferrable means transferable by delivery and the word instruments means compose chronicles. It entitles a person to a certain sum of money. In simple words we can say it is a written enter which is transferable from one person to another by delivery.According to contract act it is defined as , A transferrable instrument means a promissory note, bill of exchange or margin check repayable by order or carrier.Example - ticks, Bill of Exchange and promissory Notes are the important examples of assignable instruments.Characteristics Of Negotiable In struments -Following are the important characteristics of transferrable instruments 1. In Writing -It is the basic condition of the negotiable instrument that it is al carriages in writing. It can not be verbal.2. controlling -It is an unconditional instrument if any condition is attached then it can not be called negotiable instrument.3. Transferable -It can easily transferable from one person to another. In these instruments right of ownership passes either by delivery or by moment.4. Payable On Demand -The fare of the instrument is broadsheet payable on essential or at any predetermination future time.5. Payable In coin -The amount must be written on the instrument and it is always payable in terms of money.6. Payable To The toter -The amount written on it is payable to the bearer or to a stipulate person.7. Payment of Debt -It can be very easily used for the payment of debt. It is very simple and convenient method of payment.8. pay of Recovery -A stay or Note gives the right to the creditor to predominate the written amount from the debtor. He can reimburse this amount by himself or he can transfer this right to another.9. reveal Title -If there is a reproach in the title of the previous carrier it does not affect the holder in delinquent course. So it is a meliorate short(p) than others.10. Exception of General Law -In case of transfer of property the general concept of law is that No carcass can transfer a discontinue title than that of his own.But in case of instrument this law does not apply. A negotiable instrument even got in good faith from thief is better title.11. Specified Amount -It is also a characteristic of negotiable instrument that specify and definite amount is written on the instrument.Holder.The holder of a promissory note, bill of exchange or go over means any person authorise in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto. Where the note , bill or cheque is lost or destroyed, its holder is the person so entitle at the time of such spillage or destruction.Holder in due course.Holder in due course means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or indorsee thereof, if 1payable to order, sooner the amount mentioned in it became payable, and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.. duologue by endorsementSubject to the provisions of section 58, a promissory note, bill of exchange or cheque 18payable to order, is negotiable by the holder by endorsement and delivery thereof. get over of chequesA cross cheque is a cheque that has been marked to specify an breeding about the way it is to be redeemed. A usual instruction is to specify that it must be deposited directly into an account with a assert and not immediately cashed by a bank ove r the counter.What is Crossing of Cheque ?A cheque is a negotiable instrument. During the process of circulation, a cheque may be lost, stolen or the signature of payee may be done by some other person for endorsing it. Under these draw the cheque may go into amiss(p) hands.Crossing is a popular device for defend the drawer and payee of a cheque. Both bearer and order cheques can be crossed. Crossing prevents fraud and wrong payments. Crossing of a cheque means Drawing dickens Parallel Lines across the face of the cheque. Thus, go across is necessary in order to project safety. Crossed cheques must de presented through the bank only because they are not paid at the counter.DISHONOUR OF A hitch-a cheque which the bank impart not pay because there is not enough money in the account to pay itCompanies Act 1956The Companies Act 1956 is an Act of the Parliament of India, enacted in 1956, which enabled companies to be organise by allowance, and set out the responsibilities of co mpanies, their directors and secretaries.1 The Companies Act 1956 is administered by the Government of India through the Ministry of bodily Affairs and the Offices of Registrar of Companies, Official Liquidators, ordinary Trustee, Company Law Board, Director of Inspection, etc. The Registrar of Companies (ROC) handles incorporation of new companies and the regime of running companies.Companies ActIn India, the Companies Act, 1956, is the to a greater extent(prenominal) or less important piece of legislation that empowers the substitution Government to regulate the framingation, financing, functioning and whirl up of companies. The Act contains the mechanism pictureing organisational, monetary, managerial and all the relevant aspects of a caller-up. It empowers the telephone exchange Government to inspect the books of accounts of a connectedness, to direct special audit, to order investigation into the personal matters of a bon ton and to launch quest for violation o f the Act.These inspections are designed to find out whether the companies conduct their affairs in accordance with the provisions of the Act, whether any below the belt practices prejudicial to the public evoke are being resorted to by any party or a group of companies and to insure whether there is any mis forethought which may adversely affect any interest of the shareholders, creditors, employees and others.Following are the main characteristics of a union1. Legal EntityA come with is an artificial person created by law. So, it has a separate legal entity from its fragments. It can hold and deal with any type of property of which it is owner in any way like, can enter into contracts, open bank account in its own name, sue and be sued in its name and capacity.2. continuous SuccessionJoint stock confederacy is a corporate body. It acquires a separate legal personality difference from its member with a common seal. It does not depend upon the existence of its members. I t means fraternity is not at all affected by the death, lunacy or bankruptcy of its members or shareholders. The shareholders may come or go but the confederacy goes on forever. scarce law can terminate its existence.3. control obligationThe liabilities of shareholders of the high society is moderate up to their upper-case letter investment only. The indebtedness of the shareholders in the public hold in connection is restrict to the extent of the amount of share, they have subscribed. The shareholders are not liable for the payment of overmuch claim of the creditors even if capital of the partnership becomes insufficient.4. Common SealHowever, a fellowship being artificial person, it can not sign on documents like inhering person. Therefore, a common seal is used as a substitute of signature. The common seal affixed on all documents of the alliance.5. Transferability Of Share CapitalThe shares of a smart set are freely transferable from one person to another pe rson overhear out in case of private companies.6. disengagement Of self-command And ManagementEvery member or shareholder, who is real owner of the company can not take bustling part in day-to-day management of the company. It is managed and controlled by a board of directors.7. alimony Of Books Of AccountsA company has to keep and save a prescribed set of story books and any failure in this regard attracts penalties.8. Audit Of Account And ordinaryation Of financial StatementsIt is compulsory for each and every company to get its accounts to be audited. A enounce stock company has to publish its financial statement at the end of every fiscal year.Types Of CompaniesThere are different types of company, which can be classified on the basis of formation, liability, ownership, domicile and control.1. Types Of Companies On The tooshie Of Formation Or Incorporationa. charter CompaniesCompanies which are stopd under special charter or proclamation issued by the head of state , are cognize as rent companies. The Bank Of England, The East India Company, rent Bank etc. are the examples of chartered companies.b. Statutory CompaniesCompanies which are formed or incorporated by a special act of parliament, are known as statutory companies. The activities of such companies are governed by their respective acts and are not mandatory to have any memorial or Articles Of Association.c. Registered CompaniesRegistered companies are those companies which are formed by registration under the Company Act. Registered companies may be divided into two categories.* occult CompanyA company is give tongue to to be a private company which by its Memorandum of Association restricts the right of its members to transfer shares, limits the number of its members and does not invite the public to subscribe its shares or debentures. *Public CompanyA company, which is not private, is known as public company. It needs stripped seven persons for its registration and maximum to the limit of its registered capital. There is no restriction on issue or transfer of its shares and this type of company can invite the public to purchase its shares and debentures.2. Types Of Companies On The Basis Of obligationRegistered companies are divided into two types, namely, companies having limited liability and companies having countless liability.a. Companies Having Limited obligationThis liability can be limited in two ways* obligation Limited By SharesThese are those companies in which the capital is divided into shares and liability of members (share holders) is limited to the extent of face value of shares held by them. This is the most popular class of company.* indebtedness Limited By GuaranteeThese are such companies where shareholders promise to pay a fixed amount to stomach the liabilities of the company in the case of liquidation.b. Companies Having Unlimited LiabilityA company not having any limit on the liability of its members as in the case of a part nership or sole trading concern is an unlimited company. If such a company goes into liquidation, the members can be called upon to pay an unlimited amount even from their private properties to meet the claim of the creditors of the company.3. Types Of Companies On The Basis Of Ownershipa. Government CompaniesA governing body company is a company in which at least 51% of the paid up capital has been subscribed by the government.b. Non-government CompaniesIf the government does not subscribe a stripped 51% of the paid up capital, the company will be a non-government company.4. Types Of Companies On The Basis Of Domicilea. National CompaniesA company, which is registered in a outlandish by restricting its area of operations within the case boundary of such country is known as a national company.b. Foreign CompaniesA foreign company is a company having disdain in a country, but not registered in that country.c. Multinational CompaniesMultinational companies have their mien and concern in two or more countries. In other words, a company, which carries on business activities in more than one country, is known as international company.5. Types Of Companies On The Basis Of Controla. dimension CompaniesA holding company is a company, which holds all, or majority of the share capital in one or more companies so as to have a controlling interest in such companies.b. Subsidiary CompanyA company, which operates its business under the control of another company (i.e holding company), is known as a subsidiary company.Memorandum of associationThe enumeration of association of company, often simply called the enrolment (and then often capitalised as an abbreviation for the official name, which is a proper noun and unremarkably includes other words), is the document that governs the relationship between the company and the outside. It is one of the documents required to incorporate a company in the join Kingdom,1 Ireland, India, Bangladesh, Pakistan and Sri Lank a, and is also used in many another(prenominal) of the common law jurisdictions of the Commonwealth. A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders. The MOA is sociable to the public and describes the companys name, personal address of registered office, names of shareholders and the distribution of shares.Articles of associationIn corporate governance, a companys articles of association (called articles of incorporation in some jurisdictions) is a document which, on with the memorandum of association (in cases where the memorandum exists) form the companys constitution, defines the responsibilities of the directors, the kind of business to be undertaken, and the means by which the shareholders apply control over the board of directors. rendering of Articles Of AssociationA document that specifies the regulations for a companys operations. Th e articles of association define the companys purpose and lays out how tasks are to be accomplished within the organization, including the process for appointing directors and how financial records will be handled.