BUSINESS LAW - PAPER CODE-201 - SEMESTER-3 - Unit I: Sale of Goods - Definition, Conditions and Performance

Sep 17, 2026

Uploaded by Mary Man

Business Law paper outlines core concepts of the Sale of Goods framework and related instruments. It covers the definition of goods and sale, essentials of sale, conditions and warranties, passing of property, and the Nemo Dat principle. The syllabus also addresses rights of unpaid sellers and remedies for breach of contract, followed by negotiable instruments: their meaning, key kinds, holder and holder in due course, and rules on negotiation, presentation, crossing of cheques, discharge of liability, noting and protest, and dishonour.

LanguageEnglish

CategoryExam

FormatPDF

Pages62

Reading Time2 h 36 min

AccessFree to download

Unit – I: Sale of Goods

Definition of ‘goods’ and ‘sale’

Essentials of sale

Conditions and Warranties

Passing of property

Nemo Dat quod non habet

Unit – II: Sale of Goods Act

Rights of unpaid seller

Remedies for breach of contract

Unit – III: Negotiable Instruments

Definition and essential kinds

Holder and holder in due course

Negotiation and assignment

Unit – IV: Negotiable Instruments

Presentation and liability

Crossing of cheques

Discharge from liability

Noting and protest

Dishonour of negotiable instruments

BALL.B (H) BUSINESS LAW PAPER CODE-201 SEMESTER-3 Unit – I: Sale of Goods: Definition, Conditions and Performance a. Definition of ‘goods’ and ‘sale’ b. Essentials of sale c. Conditions and Warranties d. Passing of property e. Nemo Dat quod non habet Unit – II: Sale of Goods Act: Right of parties and remedies a.Rights of unpaid seller b. Remedies for breach of contract Unit – III: Negotiable Instruments a. Definition, essential kinds of negotiable instruments b. Holder and holder in due course c. Negotiation and assignment Unit – IV: Negotiable Instruments: Presentation and Liability a. Presentation of Negotiable Instruments b. Crossing of cheques c. Discharge from Liability d. Noting and Protest e. Dishonour of negotiable instruments UNIT-1 DEFINITION OF ‘GOODS’ AND ‘SALE’ According to section 2(7) of the Sale of Goods Act, 1930, Goods means every kind of movable property, other than actionable claims and money; and includes stocks, shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. Thus we can define goods as every kind of movable property except actionable claims and money. Types of Goods a) Specific Goods, b) Future goods and c) Generic Goods a) Specific Goods: means goods identified and agreed upon at the time of a contract of sale is made. They are also called existing goods or ascertained goods. b) Future goods: means goods to be manufactured or produced or acquired by theseller after making the contract of sale. d) Generic Goods are unascertained goods that are not specifically identified at the time of a contract of sale is made. E.g. 50 kg of rice out of 500 kg of rice. Sale Sale: When under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale. Agreement to sell: The transfer of property in the goods that is to take place at a future time, or subject to some conditions, thereafter to be fulfilled, it is called an agreement to sell. An agreement to sell becomes a sale when the time elapses orthe conditions are fulfilled subject to which the property in the goods is to be transferred. Distinguish between a sale and an agreement to sell. | Sale | Agreement to sell | | --- | --- | | 1. Property or ownership is of goods is transferred immediately to the future time or subject to certain buyer. | 1. Ownership is to be transferred at conditions to be fulfilled. | | 2. If the buyer fails to pay for the goods the seller may sue for price. | 2. The seller can sue only for the damages and not for the price. | | 3. If the goods are destroyed the loss falls upon the buyer | 3. If the goods are destroyed the loss falls upon the seller unless otherwise agreed. | | 4. The seller cannot resell the goods | 4.The seller can resell the goods | | 5. A sale is an executed contract | 5. Agreement to sell is an executing contract. | Distinguish between Agreement to sell and Hire-Purchase Agreement Agreement to sell Hire purchase Agreement a) An agreement to sell can be in writing or oral a) Hire purchase agreement must be in writing. b) Possession: the buyer may or may not get the possession of the goods. b) Possession: The buyer gets the possession of the goods and enjoys it. c) Generally businessmen and consumers may enter into an agreement to sell with the purpose of resale of goods or to enjoy them. c) Consumers without sufficient money, but interested in the goods, enter into hirepurchase agreement for the purpose of enjoying the goods. d) Under this, if a person buys any goods and subsequently sells them to a third party, the third party acquires a good title. d) A hire-purchaser is not entitled to sell the goods until all the installments are paid because until then the ownership lies with the vendor. e) Under this, a buyer is entitled to claim implied conditions and wa

FAQs

What are “goods” under the Sale of Goods Act, 1930?

Goods mean every kind of movable property other than actionable claims and money, and include items like stocks, shares, growing crops, grass, and things attached to or forming part of land agreed to be severed before sale or under the contract of sale.

How do you distinguish a sale from an agreement to sell?

In a sale, ownership/property is transferred immediately, while in an agreement to sell the transfer is to take place at a future time or subject to conditions. If the buyer fails to pay, the seller’s right differs: in sale, the seller may sue for price; in agreement to sell, the seller generally sues for damages only.

What is the meaning of an agreement to sell?

An agreement to sell is a contract where ownership of the goods is to be transferred at a future time or upon fulfilment of conditions. It becomes a sale when the time elapses or the conditions are fulfilled.

Sep 17, 2026

Uploaded by Mary Man