Sale of Goods Act, 1930

PRELIMINARY-
1. The sale of Goods Act, 1930 is enacted by repealing the provision of Indian contract Act, 1872.
2. Chapter 7 (Section 76-123) were repealed by the Sale of Goods act, 1930.
3. BL Mitter was the chairman of the committee appointed by the Government of India to examine
the provisions of Indian Sale of Goods Bill.
4. The rules of English law relating to the sale of goods has grown up mainly through Judicial
Decisions.
5. The Sale of Goods Acts deals with the transfer of property in regards to goods.
6. The Indian Sale of Goods Act is substantially based on English Sale of Goods Act, 1893
7. The purpose behind the enactment of SOGA is to define and amend the laws relating to the sale of
goods.
8. This Act came into force w.e.f. 1st July, 1930.
9. The operation of the Sale of Goods Act, 1930 is prospective.
10. The word ‘Indian’ was omitted on 22nd September, 1963.
11. The United Nations Conference on Contract for the Sale of Goods in the year 1980 was held at
Vienna.
12. Lottery Tickets are good as per the definition of 'goods' under SOGA including the
characteristics of both actionable claim and goods.
13. Standing timber is movable property if under the contract of sale they are to be severed. But the
severance must take place when the timber vests in the contracting party. (Held in State of MP and
Others v Orient Paper Mills)
14. Article 366(12) of the Constitution of India defines the term ‘goods’ and includes Materials,
commodities and articles.
15. The meaning of the expression ‘sale of goods’ was considered by a Constitution Bench in the case
of State of Madras v Gannon Dunkerley & Co. Ltd.
16. In case of Sunrises Associates v NCT Delhi
17. The subject matter of the contract of sale as per section 6 of SOGA can be existing goods,
owned or possessed by the owner or future goods.
18. The document issues by a wharf owner or a dock at a merchant’s request, setting out the detailed
weights and measurements of a specific parcel of goods and declaring that the goods are held to the
order of the person named, or his assignee by endorsement is called dock warrant.
19. An order by the owner of the goods to a person holding them on his behalf directing him to
deliver them to a person named in the order, is called Delivery order.
20. Conditional delivery orders in which the supplier of goods reserved the option to deliver it or
not, are not document of title.
21. A valid pledge can be made by the owner of a railway receipt by transferring it representing the
said goods.
22. Multi modal Transportation of Goods Act came into force in the year 1993
23. Water, gas, oil are goods within the meaning of the Sale of Goods Act, 1930.
24. In the case of UOI &Anr v Delhi Cloth and General Mills Co. Ltd, the Supreme court held that
to become goods an article must be something which can be ordinarily come to markets to be
bought and sold.
25. Domestic animals are goods within the meaning of the Sale of Goods Act, 1930.
26. Transfer of REP License by holder to another person for money constitutes sale.
27. Debentures, shares before allotment, coin collection are not goods within the meaning of the
Sale of goods, 1930.
28. 46th Constitutional amendment was introduced to overcome the law laid down in Gannon
Dunkerley Case (AIR 1958 SC 560)
29. Software is a good within the meaning of Sale of Goods Act, 1930.
30. Unascertained goods are also called generic goods.
31. 'Price' is termed as money consideration in a contract of sale.
32. Condition is a stipulation essential to the main purpose of contract.
33. Warranty is a stipulation collateral to the main purpose of contract.
34. In case of Gopala Krishna Pillai vs KM Mani, the Supreme Court held that ‘a resale of sale of
goods and the money consideration for such resale is the price payable in respect of such re-sale.
35. Property as mentioned in section 2(11) of the Sale of Goods Act means general property in goods
36. Goods don’t include actionable claims and money.
37. The definition of ‘goods’ in the Sale of Goods Act, 1930 included Electricity and Copyright.
38. Transfer of actionable claims is governed under Transfer of Property Act, 1882 and not under
SOGA.
39. 'Money' does not include old coins and foreign currency.
40. Goodwill, trademark, patent and interest of a partner in a partnership are goods in terms of the
Sale of goods act, 1930.
41. Money order is not included in Document of title to goods.
42. Future goods cannot be sold but there can only be an agreement to sell.
43. All essentials of valid contract must be observed for sale of Goods.
44. A claim to any debt, other than a debt secured by mortgage of immovable property or by movable
property, or to any beneficial interest in moveable property not in possession , either actual or
constructive, of the claimant, which the Civil Courts recognize as affording grounds for relief,
whether such debt or beneficial interest be existent, accruing, conditional or contingent, is called
Actionable Claim.
45. Existing goods can be classified in to Specific goods, ascertained and unascertained.
46. Pollock defined ‘delivery’ as ‘voluntary dispossession’.
47. In case of CST, MP v MPEB, the Supreme Court held that electricity is covered under the
definition of goods.
48. Property in goods is not
transferred in Case of Bailment
Creating charge or pledge.
49. Contracts involving use of both service and goods are considered to be contract for work and skill.

CHAPTER- II (FORMATION OF CONTRACT)

50. Chapter 2 of the Sale of Goods Act, 1930 deals with the formation of contract.
51. Section 4 defines Sale as well as Agreement to sell.
52. There may be a contract of sale between one part-owner and another.
53. A photographer sells the photos to the customers. This is a sale.
54. Hire and purchase contemplates an eventual sale.
55. The distinction between sale and agreement to sell determines the rights and liabilities of the
parties.
56. Contact of sale is an executed contract.
57. Agreement to sell is an executor contract.
58. Buyer and seller has to be different persons, which means a person cannot buy his own property
unless he is buying it in execution
59. The contract of sale must be absolute or conditional.
60. A fisherman agreed to sell a certain type of fish if there is no cyclonic storm. The goods are
contingent goods.
61. Supply of cement by a stockiest to a permit holder is a sale.
62. Supply of water, gas and electricity by public authorities is not a sale.
63. Finished silver articles were given in exchange of silver is not a sale.
64. To erect a building, renew and alter the engines and other machinery in a building or installment
of machinery in a building is not a contract of sale.
65. Bilateral contract, money consideration and goods are essential ingredients of sale as per
definition of sale given under section 4.
66. The contact of sale may provide for the delivery or payment by installments, or that the delivery
or payment or both shall be postponed.
67. A sale can be completed even without effecting immediate delivery and immediate payment.
68. In contract of sale, the title of goods passes immediately on the payment of price.
69. In agreement to sell, the title of goods passes at a future time on the payment of the price.
70. A letter of intent is merely an expression of an intention to enter into a contract.
71. In the case of RC Jal v Union of India, the Supreme Court held that ‘Transaction of sale is a
composite transaction consisting of agreement of sale, passing of title, delivery of goods and
payment of price and costs charges of transportation.
72. Sale by auction is a sale. (Chowringhee Sales Bureau (P) Ltd. v C IT West Bengal)
73. In case of Gannon Dunkerley’s case, the Supreme court held that the word ‘Sale’ in Entry 48 of
List II of Schedule VII of the Government of India Act and Entry 54 of List II of the Schedule VII
of the Constitution has the same meaning as that given in the Sale of Goods Act, 1930.
74. One of the conditions between the parties of the bottles would be refunded on the buyer
returning the empty bottles. It is a sale.
75. A partnership firm was dissolved and the surplus assets were divided among the partners in
specie. It is NOT a sale because the partners are joint owners of property and they could not be both
seller and buyer at the same time.
76. Supply of liquor to its members by a club is not a sale.
77. Where a company passed a resolution transferring a number of buses to a partnership firm
consisting of certain members of the company. It is a sale because company is a legal person.
78. 46th Constitutional Amendment introduced the concept of deemed sale.
79. In case of BSNL v Union of India, the Supreme Court held that the amendment in Article 366 to
be of a limited application to deemed sale and all other transactions would still require to comply
the Gannon Dunkery test to be called a ‘sale’.
80. Union and State both have competence to make laws relating to contract of Sale of Goods.
81. Where there is a contract for the sale of specific goods, if the goods without the knowledge of
the seller have, at the time when the contract was made, perished or become so damaged as no
longer to answer to their description in the contract. The contract is VOID.
82. Section 7 and 8 are applicable only in case of specific good.
83. Where a part of the goods is perished before making the contract and contract is severable in
nature, preserved part of the contract can be enforced. If the goods was inseverable, then the contract
becomes void ab initio.
84. There was a contract of sale of a parcel of 500 bags of ground nuts. Unknown to the seller, 150
bags were stolen. The seller delivered the remaining bags. Here the contract in relation to 150 bags
is void.
85. According to section 7, the contract for sale of specific goods is void where either the entire
goods or any part of goods perished before the contract.
86. In a sale, if the goods are destroyed, the loss falls on the buyer.
87. In a agreement to sell, if the goods are destroyed, the loss falls on the seller.
88. In a sale, if the buyer fails to pay the price of the goods or if there is breach of contract, the
seller can sue for price.
89. In an agreement to sell, if there is a breach of contract by the buyer, the seller can only sue for
the damages only.
90. Hire and purchase is a blend of bailment and agreement to sell.
91. The position of hire and purchaser is of the bailee.
92. On non-acquisition of contingent goods, parties are discharged.
93. On non-acquisition of future goods, parties are not discharged.
94. The transfer of actionable claims is regulated by Transfer of Property act.
95. A wagering contract is not forbidden by law.
96. Where there is an agreement to sell specific goods, and 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 agreement before the risk passes to the buyer, the agreement is thereby avoided.
(Section 8)
97. Section 8 is applicable when the goods perished without any fault of buyer or seller.
98. Where the price is not fixed in accordance to custom and usage of trade, the buyer shall pay the
seller a reasonable price.
99. If seller has knowledge about destruction of goods, before entering the contract, than he is
bound to compensate the buyer.
100. Section 9 deals with the principles for the ascertainment of price.
101. The price in a contract of sale may be
 Fixed by the contract
 May be left to be fixed in manner thereby agreed by parties
 May be determined by the course of dealing between the parties.
102. What is a reasonable price is a question of fact depending on the facts and
circumstances of the case.
103. Section 9 of the act allows the parties not to fix the price at the time of the transfer and
to leave the determination of amount of consideration of a later date.
104. A agrees to sell to B one thousand mounds of rice at a price to be fixed by C. The
agreement is valid.
105. Section 10 of the act deals with ‘agreement to sell at valuation’.
106. Where there is an agreement to sell goods on the terms that the price is to be fixed by
the valuation of a third party and such third party cannot or does not make such valuation, the
agreement is thereby avoided (Section 10(1))
107. Section 10 talks about fixations of price by third party in which name of the third party is
specified in the contract.
108. If third party fails to specify, the contract is void but if goods are delivered to buyer and
used by him he is required to pay the reasonable price.
109. If a particular person is named in the contract as a valuer, the task of valuing cannot be
delegated.
110. A valuation may be impeached on the ground either application of wrong standard by
valuer, or fraud, or collusion.
111. Where the valuer has been fraudulent or negligent, the valuer is liable to the party who
suffered loss.
112. If the third party is prevented from fixing price, defaulting party is liable for the damages.
113. A agrees to sell mangoes to B at a price to be fixed by B and B refused to fix the price.
The agreement can be avoided.
114. Section 11 deals with ‘stipulation as to time’.
115. Whether any other stipulations as to time is essence of the contract or not, depends on the
terms of the contract.
116. The parties can stipulate that the time of payment shall be the essence of the contract.
117. In a contract, a stipulation as to time may be waived by the party in whose favor it is
inserted.
118. The buyer’s failure to pay in time does not entitle the seller to repudiate the contract
unless the time is the essence of the contract.
119. Section 12 deals with conditions and warranty
120. Stipulation may be condition or warranty depends upon its importance in relation to
contract.
121. The stipulation essential to the main purpose of the contract is a condition.
122. The stipulation collateral to the main purpose of the contract is a warranty.
123. A breach of condition gives rise to right to treat the contract as repudiated.
124. A breach of warranty gives rise to claim for damages but not to a right to reject the goods
and treat the contract as repudiated.
125. Whether a stipulation in a contract of sale is condition or a warranty, depends in each
case on the construction of the contract.
126. Although in terms of sub section 3 of Section 12, no right accrues to a purchaser to reject
the goods on breach of stipulation of warranty, the same would not mean that the extent of
damages cannot be equivalent to the price of the goods.
127. The terms of the contract which constitute the hard core of the contract and its non-
fulfillment may upset the very basis of the contract is a condition.
128. The conditions and warranties may be express or implied.
129. Express conditions and warranties are those, which the parties agree expressly i.e. either
orally or in writing.
130. Breach of condition may be treated as breach of warranty.
131. Breach of warranty may be treated as breach of condition.
132. According to section 13, where a contract of sale is subject to any condition to be
fulfilled by the seller, the buyer may either wave of the condition, or elect to treat the breach of
the condition as a breach of warranty and not as a ground for relating the contract as repudiated.
133. Where the contract is not severable and the buyer has accepted the goods or any part
thereof, the breach of any condition to be fulfilled by the seller can only be treated as breach of
warranty.
134. Where the contract is not severable and buyer has accepted the goods or part thereof, on
the breach of any condition to be fulfilled by the seller, the buyer neither can reject the whole
goods nor can repudiate the contract.
135. Nothing in section 13 shall affect the case of any condition or warranty fulfillment of
which is excused by law by reason of impossibility or otherwise.
136. Once a buyer has accepted the goods or part thereof and thereafter discovers that some
 conditions of the contract have not been fulfilled, he can reject the goods.
137. When a condition is reduced to warranty, remedy is actually changed.
138. Section 13(2) is amended in the year 1962
139. Implied conditions are those, which are implied by the law in the absence of any
agreement to the contrary.
140. In a contract of sale, if the buyer gives some tangible things as a token of good faith or as
a guarantee for the due performance of the contract, it is called earnest.
141. If the contract is duly performed, the earnest will be either returned or adjusted in the
price.
142. Section 14-17 contains implied conditions are warranties.
143. Implied conditions are mandated by law.
144. Either directing the delivery of goods to a third party or re-selling it without examination
is a case of waiver of condition by conduct.
145. The question whether there has been effective waiver is a mixed question of fact and law.
146. Section 13(2) is not applicable on specific goods.
147. Implied undertaking as to title- Section 14.
148. In a contract of sale, unless the circumstances of the contract are such as to show a
different intention, there is an implied condition on the part of the seller that, in case of a sale, he
has a right to sell.
149. In the case of agreement to sell, unless the circumstances of the contract are such as to
show a different intention, there is an implied condition on the part of the seller that, in case of a
sale, he will have a right to sell the goods at the time when the property is to pass.
150. If a buyer once decided to waive a condition, he cannot afterwards insist on its fulfillment
151. Where in a sale of a second hand reaping machine which the buyer had not seen, and the
seller states that the machine was as god as new only a year old and used to cut only about 50
acres. The buyer finds when it is delivered to him that it is old and has been mended, the buyer
may reject the goods as they were not corresponding with the description given by the seller.
(Varley vs Whipp)
152. If the title of seller tur ns out to be defective, the buyer must return the goods to the
true owner and recover the price from seller.
153. Where the goods are sold by description, there is an implied condition that the
goods shall correspond to the description.
154. The seller sold to the buyers a quantity of tins of condensed milk bearing the name
‘Nissly Brand’, this was an infringement of a registered trademark of a firm of manufacturers of
condensed milk. The buyers, in order to make use of the goods, were compelled to remove labels
and then sold the goods unlabelled at the best price which they would fetch. The sellers were held
to have committed breach of implied condition as well as warranty as neither seller had the title to
sell the goods not the buyer enjoyed the quiet possession of acquired goods.
155. Section 15 deals by the implied condition of sale by description.
156. Section 15 mandates that goods shall correspond to sample as well as description.
157. Where in a sale by description, the goods are not corresponding to the description and the
contract provides that buyer shall not reject the goods and the dispute, if any, may be referred to
arbitration. In such a case, the buyer may reject the goods.
158. The stipulation of time in a contract may be regarding delivery of goods as well as
payment of price.
159. Waiver of condition may be voluntary or compulsory.
160. In voluntary waiver, buyer altogether waive a condition for his own benefit or buyer treat
the condition as warranty and claim damages only instead of repudiating the contract.
161. Where contract is un-severable and buyer has accepted goods or a part thereof-
 compulsory waiver
162. Where fulfillment of a condition is excused by law due to impossibility of performance-
Compulsory waiver
163. A company sold certain shoes made of a special sole for the police department. Later
some other materials were found inside, which were not discoverable in the ordinary inspection.
In this case buyer is entitled to the price and damages.
164. Ordinarily there is no implied warranty or condition as to the quality or fitness for any
particular purpose of goods supplied under a contract of sale subject to some exceptions.
165. An express warranty or conditions does not negative a warranty or conditions implied by
the Sale of Goods act unless inconsistent therewith.
166. Section 16 is the exception to CAVEAT EMPTOR
167. Caveat emptor means Let the buyer be aware.
168. The first exception of the principle of caveat emptor (where buyer reply on his owns kill
and judgment) is applicable to specific and unascertained goods both.
169. Fitness for buyer’s purpose; merchantable quality; sale under a patent name and
conditions implied by usage of trade are exceptions to general rule of caveat emptor.
170. When the article can be used only for one particular purpose, the buyer need not inform
the seller the purpose for which the goods are required.
171. The condition as to quality or fitness will not apply, if the buyer is suffering from an
abnormality, which renders the goods, unsuitable for a particular purpose and the buyer does not
inform the seller about that abnormality.
172. Where goods are bought by description from a seller, who deals in goods of that
description, there is an implied conditions that the goods shall be of merchantable quality.
173. An implied warranty as to quality or fitness for a particular purpose may be annexed by
the usage of trade.
174. The implied condition as to fitness of goods exists only at the time of sale.
175. Baldry vs Marshall is a leading case relating to sale under a patent or trade name.
176. Merchantability merely means that the goods shall be marketable.
177. Thornett and Fehr v Beers and sons is a leading English case relating to Examination by
buyer.
178. The proviso to section 16 (1) is applicable in case of Patent defects.
179. Caveat venditor means let the seller beware.
180. “Merchantable” term is not defined under Sale of Goods Act.
181. Jones v Bowden is a leading case in Conditions implied by trade usage.
182. The custom should not be inconsistent with the express terms of the contract.
183. Where in a sale of pigs ‘with all faults’ in market. The pigs were suffering from typhoid
fever and infected other pigs belonging to the buyer. In the absence of fraud on the part of the
seller, the buyer has no remedy (Not in case the seller has committed the fraud on buyer by not
disclosing the defect on purpose). (Ward vs Hobbes)
184. In the leading case of Ward v Hobbes, the house of Lords held that the vendor cannot be
expected to use artifice or disguise to conceal the defects in the product sold, since that would
amount to fraud on the vendee; yet the doctrine of caveat emptor does not impose duty on vendor
to disclose each and every defect in the product. The caveat emptor imposes such obligation on
vendee to use care and skill while purchasing that product.
185. Contract to sell unascertained goods is not sale, it is agreement to sell.
186. Where a catapult was sold to a boy. The catapult broke in use and caused the loss of the
boy’s eye. The catapult was held not to be reasonably fit for the purpose for which it was
required. Here the buyer was entitled to damages. (Goldley ve Perry)
187. Priest vs Last is the landmark case also known as Hot water bottle case.
188. X purchased milk which contains typhoid germs. His wife consumed it and died. X
 recovered the damages. (Forst vs Aylesbury Diary. Co)

CHAPTER- III (EFFECTS OF CONTRACT)

189. Chapter III of the Act deals with Effects of the Contract.
190. Section 18 applied on unascertained goods.
191. Where 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 ascertained (Section 18)
192. In case of unascertained goods, when both parties come to know which particular
goods shall be delivered, ownership of transferred.
193. Legal ownership in goods are called general property.
194. Buyer becomes the owner of goods on passing of the general property in goods from
seller to the buyer.
195. Custody or physical control over the goods is called Possession.
196. Transfer of possession means merely the delivery of goods.
197. The ownership of the goods may pass with or without the transfer of the possession.
198. Transfer of ownership is of great importance due to the fact that risk passes with the
ownership, proprietary rights over the goods and determination of seller’s right for the price.
199. Ascertainment of goods is a condition precedent to the passing of the property.
200. In case of Badri Prasad vs state of MP, the Supreme Court explained the meaning of
‘Ascertained’.
201. Unascertained goods- (i) Goods to be manufactured by the seller; (ii) Generic goods;
(iii) Unidentified part of a specific as a whole.
202. Section 19 is applicable for both Specific goods and Ascertained goods.
203. Section 19 is not applicable for forcible taking possession of a motor vehicle since by
virtue of possession the properties in goods don’t pass automatically.
204. When some parts are replaced or supply of spare parts for a machine already sold as per
the service maintenance agreement, it amounts to sale.
205. When a railway receipt is handed over to the consignee on payment, the property in the
goods is transferred.
206. Though the passing of property is the natural result of a sale, not the inevitable result.
207. In case of Agricultural Market Committee vs Shalimar Chemical Works Ltd, the
Supreme Court deals with ‘Intention of Parties’
208. Section 20 will normally inapplicable to CIF Contracts, FAS, C&F
209. The Sale of Motor vehicles is governed by the sale of goods act.
210. Where a truck was sold, but the requirements under Motor Vehicles Act were not
satisfied. The vehicle is Seller’s Property.
211. The risk of loss as a rule lies on the Owner.
212. The assent under Section 23 be Expressed or Implied.
213. The assent under Section 23 be given either before or after the appropriation is made.
214. Seller is liable for the loss in delivery of goods on sale or return, if the goods perishes
by in evitable accident.
215. Bailee in possession of goods with an option to purchase is termed as a buyer in Section
24 of the Act.
216. On failure of return within specified time, the property passes to the Buyer.
 217. On failure to return within specified time by the buyer, the seller can sue for the price.
218. Whatever be the intention of parties, property cannot pass in unascertained goods.
219. The process by which the identity of the goods to be delivered under the contract is
established is canned Ascertainment
220. Ascertainment is n unilateral act of the seller.
221. The act appropriation is usually to be done by buyer.
222. The seller is bound to give delivery only if the buyer has applied for it.
223. Performance of sale by seller is by delivery of goods.
224. General Rule- Risk passes with ownership (Section 26).
225. Possession of goods is immaterial for risk.
226. FAS Contract means Free alongside ship
227. In FAS Contract the goods passed to the at the time of delivery alongside the ship named
by the buyer under a contract of carriage
228. FOB contract means Free on board
229. In FOB contracts once the goods are put on board the ship, the risk is to the buyer.
230. CIF contract means Cost, insurance and freight.
231. In a CIF contract is performed by the delivery of documents through the Banker.
232. In a CIF Contract, the property in goods passes to the buyer when the goods are shipped.
233. In the case of Consolidated Coffee Ltd. v Coffee Board, the Supreme Court held that Risk
and property may be separated by the terms of the contract.
234. The maxim Res Perit Domino is the rule contained in Section 26 of the Act.
235. The risk and the property is inseparable subject to the contract to the contrary.
236. Risk and property can be separated by trade, express agreement or terms of contract.
237. When delivery is delayed because of faulty of any party, he is liable for risk i.e. the party
who is in fault.
238. As General rule, seller can't give a better title to the buyer than he himself has.
239. Exceptions to rule of 'Nemo dat quad non habet' which means no one can give what he
does not himself posses.
Sale of estoppel (sec. 27)
Sale by mercantile agent (sec. 27)
Sale by one of the joint owners (sec. 28)
Sale by person in possession under voidable contract. (Section 29)
Sale by seller in possession after sale (sec. 30)
Sale by unpaid seller (sec. 54)
Sale by finder of good(sec.169
Sale by pawnee or pledgee (sec. 176 ICA)

CHAPTER IV- (PERFORMANCE OF CONTRACT)

240. Chapter 4 deals with the performance of the contract.

241. General rule suggest that delivery of goods and payment of price are concurrent
conditions.
242. It is seller's duty to be ready and willing to deliver the goods to the buyer but he is
not bound to deliver goods unless the buyer make a demand for delivery of the goods.
243. Seller is not bound to deliver the goods unless buyer doesn’t apply for the same.
244. Whether it is for the buyer to take possession of goods or for the seller to send them to
the buyer is a question depending in each case on the contract, express or implied, between the
 parties.
245. Goods sold are to delivered at a place at which they are at the time of the sale.
246. Goods agreed to be sold are to be delivered at the place at which they are at the time of
agreement to sell.
247. If goods are not in existence, it is to be delivered at the place at which they are
manufactured or produced.
248. All expenses of making delivery of goods shall be paid by seller unless otherwise agreed.
249. Where the goods at the time of sale are in the possession of a third person, there is no
delivery by seller to buyer unless and until such third person acknowledges to the buyer that he
holds the goods on his behalf.
250. Where the seller delivers to the buyer a quantity of goods less than he contracted to sell,
the buyer may reject. But if buyer accepts the goods, he may pay seller the contracted rate for the
goods.
251. Where the seller delivers to the buyer a quantity if goods larger than he contracted to sell,
he may either reject the whole goods or may accept the goods which are in accordance with the
contract and reject the rest.
252. Acceptance means more than mere receipt of goods or taking possession of goods.
253. Where goods are delivered to the buyer which he has not previously examined, he is not
deemed to have accepted them unless and until he has had a reasonable opportunity of examining
them for the purpose of ascertaining whether they are in conformity with the contract.
254. Delivery by installment is not valid except when the contract provides so or buyer
accepts the delivery in installment. (sec. 38)
255. Where goods are sent by sea route, seller shall give notice to buyer to insure goods
otherwise he will be liable for loss.
256. If the buyer wrongfully refuses to take delivery of goods, he is liable for damages and
expenses like storage cost and transportation cost to the seller.

CHAPTER- 5 (Rights of Unpaid Seller against the goods)

257. Unpaid seller has the right against goods as well as against the buyer.
258. Under the following conditions an seller is deemed to be an unpaid seller- (i) He must be
unpaid and price must be due and neither it is tendered; (ii) He must have an immediate right of
action for the price; (iii) A bill of exchange or other negotiable instrument was received but the
same has been dishonored.
259. In case of property being transferred to buyer, unpaid seller has following rights- (i)
Right to lien (retaining); (ii) Right to stoppage in transit; (iii) Right to re-sale
260. In case, property in goods have to be transferred on a future date, the unpaid seller has
right to with holding the delivery in addition to right to lien and stoppage in transit.
261. Lien is not lost merely because the unpaid seller has obtained a decree for the price of the
goods.
262. Conditions for exercising Lien- Unpaid seller/ Ownership is transferred/ Possession with
seller
263. Conditions for exercising Stoppage in Transit- Unpaid Seller/ Possession with carrier
(Independent/not assigned by buyer/not with agent of buyer)/ Insolvent buyer
264. The unpaid seller's right of lien or stoppage in transit is not affected by any further
sale or other disposition of goods by the buyer.
265. Rights of Unpaid Seller against buyer-
 (i) Suit for price (Section 55); (ii) Suit for damages of non acceptance (Section 55); Suit for
damages for breach (Section 60); Suit for interest (Section 61(2)(d))
266. Buyer’s right against seller- (i) Suit for damages for non-delivery (Section 57); (ii) Suit
for Specific performance (Section 58); (iii) Suit for breach of warranty (Section 59); (iv) Suit to
repudiate the contract. (iv) Suit for interest.
267. Advertisement of auction sale is not offer but an invitation to make an offer.
268. In auction sale, where goods are put up for sale in lots, each lot is prima facie deemed to
be the subject of a separate contract of sale.
269. Bidder cannot sue auctioneer if an auction sale is not held on appointed day.
270. If the seller makes use of pretended bidding to raise the price, the sale if voidable at the
option of the buyer.