Introduction to the Act
The Sale of Goods Act, 1930 governs the sale and purchase of goods in India. It defines contracts, terms, warranties, and rights associated with transactions, replacing the then English law with a more localized version.
Contracts and Parties
The Act distinguishes between 'sale' and 'agreement to sell'. It details the rights and obligations of the 'buyer' and 'seller', setting the stage for legally binding commercial transactions.
Goods Classification
Goods are categorized as 'existing', 'future', or 'contingent'. The Act elucidates their nature and the implications of these classifications on sales contracts.
Conditions and Warranties
Key terms of sale, such as 'conditions' and 'warranties', are defined. Breaches of conditions can lead to contract termination, while breaches of warranties give right to damages.
Transfer of Ownership
Ownership transfer rules are critical. Risk typically passes with ownership, not with possession—an important distinction that affects liability in transactions.
Doctrine of Caveat Emptor
The Act enshrines the 'caveat emptor' principle, placing the onus on buyers to perform due diligence. However, exceptions exist for instances of fraud or misrepresentation.
Remedies for Breach
The Act provides remedies for breach of contract, including suit for price, damages for non-delivery, and repudiation of contract, safeguarding the interests of aggrieved parties.
What does the Act replace?
French commercial laws
English law in India
American business regulations
Company
