Sale of Goods act 1930

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	Sale of Goods Act, 1930
UNIT -1: FORMATION OF THE CONTRACT OF SALE
1	Section	2(1)	Buyer		‘Buyer’ means a person who buys or agrees to buy goods [Section 2(1)].
2	Section	2(13)	Seller		Seller’ means a person who sells or agrees to sell goods [Section2(13)].
3	Section	2(7)	Goods		“Goods” means every kind of movable property other than actionable claims and money; and includes stock and 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. [Section 2(7)]
4	Section	176	Actionable claims		the Fixed Deposit Receipts (FDR) are considered as goods under Section 176
5	Section	6	existing goods		EXISTING GOODS are such goods as are in existence at the time of the contract of sale, i.e., those owned or possessed by the seller at the time of contract of sale (Section 6).
6	Section	14	Specifc goods		Speci c goods means goods identi ed and agreed upon at the time a contract of sale is made [Section 2(14)].
					FUTURE GOODS means goods to be manufactured or produced or acquired by the seller after making the contract of sale [Section 2 (6)].
7	Section	6(2)	contingent goods’		The acquisition of which by the seller depends upon an uncertain contingency (uncertain event) are called ‘contingent goods’ [Section 6(2)]. Contingent goods also operate as ‘an agreement to sell’ and not a ‘sale’ so far as the question of passing of property to the buyer is concerned. In other words, like the future goods, in the case of contingent goods also, the property does not pass to the buyer at the time of making the contract.
8	Section	2(2)	Delivery - its forms and derivatives		Delivery means voluntary transfer of possession from one person to another [Section 2(2)]. As a general rule, delivery of goods may be made by doing anything, which has the e ect of putting the goods in the possession of the buyer, or any person authorized to hold them on his behalf
9	Section	2(3)	Goods deliverable state		Goods are said to be in a deliverable state when they are in such a condition that the buyer would, under the contract, be bound to take delivery of them [Section 2(3)].
10	Section	2(4)	Document of title to goods”		“Document of title to goods” includes bill of lading, dock-warrant, warehouse keeper’s certi cate, whar ngers’ certi cate, railway receipt, multimodal transport document, warrant or order for the delivery of goods and any other document used in the ordinary course of business as proof of the possession or control of goods or authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented. [Section 2(4)]
11	Section	2(9)	Mercantile Agent		It means an agent having in the customary course of business as such agent authority either to sell goods or to consign goods for the purpose of sale or to buy goods or to raise money on the security of the goods.
12	Section	2(11)	Property		‘Property’ here means ‘ownership’ or general property. In every contract of sale, the ownership of goods must be transferred by the seller to the buyer, or there should be an agreement by the seller to transfer the ownership to the buyer. It means the general property (right of owner-ship-in-goods) and not merely a special property.
13	Section	2(8)	Insolvent		A person is said to be insolvent when he ceases to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed an act of insolvency or not
14	Section	2(10)	Price		Price means the money consideration for a sale of goods.
15	Section	2(12)	Quality of goods		includes their state or condition. [Section 2(12)]
			SALE AND AGREEMENT TO SELL (SECTION 4)
16	Section	4(1)			According to section 4(1), “A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price”. There may be a contract of sale between one part- owner and another
17	Section	4(2)			A contract of sale may be absolute or conditional
18	Section	4(3)			Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be ful lled, the contract is called an agreement to sell.
19	Section	4(4)			An agreement to sell becomes a sale when the time elapses or the conditions are ful lled subject to which the property in the goods is to be transferred.
			CONTRACT OF SALE HOW MADE (SECTION 5)
20	Section	5(1)			According to section 5(1), a contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer. The contract may provide for the immediate delivery of the goods or immediate payment of the price or both, or for the delivery or payment by instalments, or that the delivery or payment or both shall be postponed
21	Section	5(2)			as per sub-section (2) of section 5, subject to the provisions of any law for the time being in force, a contract of sale may be made in writing or by word of mouth, or partly in writing and partly by word of mouth or may be implied from the conduct of the parties.
			SUBJECT MATTER OF CONTRACT OF SALE
22	Section	6	Existing or future goods		(1) The goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or future goods. (2) There may be a contract for the sale of goods the acquisition of which by the seller depends upon a contingency which may or may not happen. Example: A contract for sale of certain cloth to be manufactured by a certain mill is a valid contract. Such contacts are called contingent contracts. (3) Where by a contract of sale the seller purports to e ect a present sale of future goods, the contract operates as an agreement to sell the goods.
23	Section	7	Goods perishing before making of contract		Where there is a contract for the sale of speci c goods, the contract is void 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 contract
24	Section	8	Goods perishing before sale but after agreement to sell		Where there is an agreement to sell speci c 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.
25	Section	9	Ascertainment of price		(1) The price in a contract of sale may be  xed by the contract or may be left to be  xed in manner thereby agreed or may be determined by the course of dealing between the parties. (2) Where the price is not determined in accordance with the foregoing provisions, the buyer shall pay the seller a reasonable price. What is a reasonable price is a question of fact dependent on the circumstances of each particular case.
26	Section	10	Agreement to sell at valuation		(1) Where there is an agreement to sell goods on the terms that the price is to be  xed by the valuation of third party and such third party cannot or does not make such valuation, the agreements is thereby avoided: Provided that, if the goods or any part thereof have been delivered to, and appropriated by, the buyer, he shall pay a reasonable price therefore. (2) Where such third party is prevented from making the valuation by the fault of the seller or buyer, the party not in fault may maintain a suit for damages against the party in default.
UNIT - 2: CONDITIONS & WARRANTIES
27	Section	11	Stipulations as to time:		Unless a di erent intention appears from the terms of the contract, stipulations as to time of payment are not deemed to be of the essence of a contract of sale. Whether any other stipulation as to time is of the essence of the contract or not depends on the terms of the contract
			Condition and warranty
28	Section	12 (1)			A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warranty. [Sub-section (1)]
29	Section	12 (2)			“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”. [Sub-section (2)]
30	Section	12 (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”. [Sub-section (3)]
31	Section	12 (4)			Whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract. [Sub-section (4)]
			WHEN CONDITION TO BE TREATED AS WARRANTY (SECTION 13)
32	Section	13(1)			Where a contract of sale is subject to any condition to be ful lled by the seller, the buyer may waive the condition or elect to treat the breach of the condition as a breach of warranty and not as a ground for treating the contract as repudiated. [Sub-section (1)]
33	Section	13(2)			Where a contract of sale is not severable and the buyer has accepted the goods or part thereof, the breach of any condition to be ful lled by the seller can only be treated as a breach of warranty and not as a ground for rejecting the goods and treating the contract as repudiated, unless there is a term of the contract, express or implied, to that e ect. [Sub-section (2)]
34	Section	13(3)			Nothing in this section shall a ect the case of any condition or warranty ful lment of which is excused by law by reason of impossibility or otherwise. [Sub-section (3)]
			EXPRESS AND IMPLIED CONDITIONS AND WARRANTIES (SECTION 14-17)
35	Section	14(a)	Condition as to title		In every contract of sale, unless there is an agreement to the contrary, the  rst implied condition on the part of the seller is that (a) in case of a sale, he has a right to sell the goods, and (b) in the case of an agreement to sell, he will have right to sell the goods at the time when the property is to pass.
36	Section	15	Sale by description		Where there is a contract of sale of goods by description, there is an implied condition that the goods shall correspond with the description. This rule is based on the principle that “if you contract to sell peas, you cannot compel the buyer to take beans.” The buyer is not bound to accept and pay for the goods which are not in accordance with the description of goods.
37	Section	17	Sale by sample		In a contract of sale by sample, there is an implied condition that (a) the bulk shall correspond with the sample in quality; (b) the buyer shall have a reasonable opportunity of comparing the bulk with the sample,
38	Section	15	Sale by sample as well as by description		Where the goods are sold by sample as well as by description the implied condition is that the bulk of the goods supplied shall correspond both with the sample and the description. In case the goods correspond with the sample but do not tally with description or vice versa or both, the buyer can repudiate the contract
39	Section	16(1)	Condition as to quality or  fitness		Ordinarily, there is no implied condition as to the quality or  tness of the goods sold for any particular purpose. However, the condition as to the reasonable  tness of goods for a particular purpose may be implied if the buyer had made known to the seller the purpose of his purchase and relied upon the skill and judgment of the seller to select the best goods and the seller has ordinarily been dealing in those goods. Even this implied condition will not apply if the goods have been sold under a trademark or a patent name.
40	Section	16(2)	Condition as to Merchantability		Where goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be of merchantable quality. Provided that, if the buyer has examined the goods, there shall be no implied condition as regards defects which such examination ought to have revealed. The expression “merchantable quality”, though not de ned, nevertheless connotes goods of such a quality and in such a condition a man of ordinary prudence would accept them as goods of that description. It does not imply any legal right or legal title to sell.
41	Section	14(b)	Warranty as to undisturbed possession		An implied warranty that the buyer shall have and enjoy quiet possession of the goods. That is to say, if the buyer having got possession of the goods, is later on disturbed in his possession, he is entitled to sue the seller for the breach of the warranty.
42	Section	14(c)	Warranty as to non-existence of encumbrances		An implied warranty that the goods shall be free from any charge or encumbrance in favour of any third party not declared or known to the buyer before or at the time the contract is entered into.
43	Section	16(3)	Warranty as to quality or  fitness by usage of trade		An implied warranty as to quality or  tness for a particular purpose may be annexed or attached by the usage of trade. Regarding implied condition or warranty as to the quality or  tness for any particular purpose of goods supplied, the rule is ‘let the buyer beware’ i.e., the seller is under no duty to reveal un attering truths about the goods sold, but this rule has certain exceptions.
			CAVEAT EMPTOR
			Case 1	Fitness as to quality or use:	Priest vs. Last,
			Case 2		Bombay Burma Trading Corporation Ltd. vs. Aga Muhammad
UNIT - 3: TRANSFER OF OWNERSHIP AND DELIVERY OF GOODS
			PASSING OF PROPERTY (SECTIONS 18 – 26)
			Property (Speci c or ascertained goods) passes when intended to pass
44	Section	19 (1)			Where there is a contract for the sale of speci c or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred. [sub-section (1)]
45	Section	19 (2)			For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and the circumstances of the case. [sub-section (2)
46	Section	19 (3)			Unless a di erent intention appears, the rules contained in sections 20 to 24 are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer. [sub-section (3)]
47	Section	20	Speci c goods in a deliverable state		Where there is an unconditional contract for the sale of speci c goods in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment of the price or the time of delivery of the goods, or both, is postponed.
48	Section	21	Speci c goods to be put into a deliverable state		Where there is a contract for the sale of speci c goods and the seller is bound to do something to the goods for the purpose of putting them into a deliverable state, the property does not pass until such thing is done and the buyer has notice thereof.
49	Section	22	Speci c goods in a deliverable state, when the seller has to do anything thereto in order to ascertain price		Where there is a contract for the sale of speci c goods in a deliverable state, but the seller is bound to weigh, measure, test or do some other act or thing with reference to the goods for the purpose of ascertaining the price, the property does not pass until such act or thing is done and the buyer has notice thereof.
50	Section	18	Goods must be ascertained		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]
51	Section	23(1)	Sale of unascertained goods by description
52	Section	23(2)	Delivery to the carrier		Where, in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier or other bailee (whether named by the buyer or not) for the purpose of transmission to the buyer, and does not reserve the right of disposal, he is deemed to have unconditionally appropriated the goods to the contract.
53	Section	24	Goods sent on approval or “on sale or return”		When goods are delivered to the buyer on approval or “on sale or return” or other similar terms, the property therein passes to the buyer- (a) when he signi es his approval or acceptance to the seller or does any other act adopting the transaction; (b) if he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, then, if a time has been  xed for the return of the goods, on the expiration of such time, and, if no time has been  xed, on the expiration of a reasonable time; or (c) he does something to the good which is equivalent to accepting the goods e.g. he pledges or sells the goods.
			Reservation of right of disposal
54	Section	25 (1)			Where there is a contract for the sale of speci c goods or where goods are subsequently appropriated to the contract, the seller may, by the terms of the contract or appropriation, reserve the right of disposal of the goods until certain conditions are ful lled. In such case, notwithstanding the delivery of the goods to a buyer, or to a carrier or other bailee for the purpose of transmission to the buyer, the property in the goods does not pass to the buyer until the conditions imposed by the seller are ful lled. [Sub-section (1)]
55	Section	25 (2)			Where goods are shipped, or delivered to a railway administration for carriage by railway and by the bill of lading or railway receipts, as the case may be, the goods are deliverable to the order of the seller or his agent, the seller is prima facie deemed to reserve the right of disposal. [Sub-section (2)]
56	Section	25 (3)			Where the seller of goods draws on the buyer for the price and transmits to the buyer the bill of exchange together with the bill of lading or, as the case may be, the railway receipt, to secure acceptance or payment of the bill of exchange, the buyer is bound to return the bill of lading or the railway receipt if he does not honour the bill of exchange; and, if he wrongfully retains the bill of lading or the railway receipt, the property in the goods does not pass to him. [Sub-section (3)]
57	Section	26	RISK PRIMA FACIE PASSES WITH PROPERTY
			TRANSFER OF TITLE (SECTIONS 27 – 30)
58	Section	27	Sale by person not the owner		Subject to the provisions of this Act and of any other law for the time being in force, where goods are sold by a person who is not the owner thereof and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by his conduct precluded from denying the seller’s authority to sell.
59	Section	28	Sale by one of the joint owners		If one of several joint owners of goods has the sole possession of them by permission of the co-owners, the property in the goods is transferred to any person who buys them of such joint owner in good faith and has not at the time of the contract of sale notice that the seller has no authority to sell.
60	Section	29	Sale by a person in possession under voidable contract		A buyer would acquire a good title to the goods sold to him by a seller who had obtained possession of the goods under a contract voidable on the ground of coercion, fraud, misrepresentation or undue in uence provided that the contract had not been rescinded until the time of the sale (Section 29).
61	Section	30 (1)	Sale by one who has already sold the goods but continues in possession thereof		If a person has sold goods but continues to be in possession of them or of the documents of title to them, he may sell them to a third person, and if such person obtains the delivery thereof in good faith and without notice of the previous sale, he would have good title to them, although the property in the goods had passed to the  rst buyer earlier. A pledge or other disposition of the goods or documents of title by the seller in possession are equally valid [Section 30(1)].
62	Section	30 (2)	Sale by buyer obtaining possession before the property in the goods has vested in him:		Where a buyer with the consent of the seller obtains possession of the goods before the property in them has passed to him, he may sell, pledge or otherwise dispose of the goods to a third person, and if such person obtains delivery of the goods in good faith and without notice of the lien or other right of the original seller in respect of the goods, he would get a good title to them [Section 30(2)]. However, a person in possession of goods under a ‘hire-purchase’ agreement which gives him only an option to buy is not covered within the section unless it amounts to a sal
63	Section	54(3)	Sale by an unpaid seller		Where an unpaid seller who had exercised his right of lien or stoppage in transit resells the goods, the buyer acquires a good title to the goods as against the original buyer [Section 54 (3)]
			PERFORMANCE OF THE CONTRACT OF SALE (SECTIONS 31 – 44)
64	Section	31	Duties of seller and buyer		It is the duty of the seller to deliver the goods and of the buyer to accept and pay for them, in accordance with the terms of the contract of sale.
65	Section	32	Payment and delivery are concurrent conditions		Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions, that is to say, the seller shall be ready and willing to give possession of the goods to the buyer in exchange for the price, and the buyer shall be ready and willing to pay the price in exchange for possession of the goods.
66	Section	33	Delivery		Delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the e ect of putting the goods in the possession of the buyer or of any person authorised to hold them on his behalf.
67	Section	34	Effect of part delivery:		A delivery of part of goods, in progress of the delivery of the whole has the same e ect, for the purpose of passing the property in such goods, as a delivery of the whole; but a delivery of part of the goods, with an intention of severing it from the whole, does not operate as a delivery of the remainder. (Section 34)
68	Section	35	Buyer to apply for delivery		Apart from any express contract, the seller of goods is not bound to deliver them until the buyer applies for delivery. (Section 35)
69	Section	36 (1)	Place of delivery:		Whether it is for the buyer to take possession of the 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. Apart from any such contract, goods sold are to be delivered at the place at which they are at the time of the sale, and goods agreed to be sold are to be delivered at the place at which they are at the time of the agreement to sell or if not then in existence, at the place at which they are manufactured or produced. [Section 36(1)]
70	Section	36 (2)	Time of delivery		Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is  xed, the seller is bound to send them within a reasonable time. [Section 36(2)]
71	Section	36 (3)	Goods in possession of a third party		Where the goods at the time of sale are in possession of a third person, there is no delivery unless and until such third person acknowledges to the buyer that he holds the goods on his behalf. Provided that nothing in this section shall a ect the operation of the issue or transfer of any document of title to goods. [Section 36(3)]
72	Section	36 (4)	Time for tender of delivery		Demand or tender of delivery may be treated as ine ectual unless made at a reasonable hour. What is reasonable hour is a question of fact. [Section 36(4)].
73	Section	36 (5)	Expenses for delivery		The expenses of and incidental to putting the goods into a deliverable state must be borne by the seller in the absence of a contract to the contrary. [Section 36(5)].
			Delivery of wrong quantity
74	Section	37 (1)			Where the seller delivers to the buyer a quality of goods less than he contracted to sell, the buyer may reject them, but if the buyer accepts the goods so delivered he shall pay for them at the contract rate. [Sub-section (1)]
75	Section	37 (2)			Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell, the buyer may accept the goods included in the contract and reject the rest, or he may reject the whole. If the buyer accepts the whole of the goods so delivered, he shall pay for them at the contract rate. [Sub- section (2)]
76	Section	37 (3)			Where the seller delivers to the buyer the goods he contracted to sell mixed with goods of a di erent description not included in the contract, the buyer may accept the goods which are in accordance with the contract and reject, or may reject the whole. [Sub-section (3)]
77	Section	37 (4)			The provisions of this section are subject to any usage of trade, special agreement or course of dealing between the parties. [Sub-section (4)]
78	Section	38	Instalment deliveries:		Unless otherwise agreed, the buyer is not bound to accept delivery in instalments. The rights and liabilities in cases of delivery by instalments and payments thereon may be determined by the parties of contract.
79	Section	39(1)	Delivery to carrier		Subject to the terms of contract, the delivery of the goods to the carrier for transmission to the buyer, is prima facie deemed to be delivery to the buyer. [Section 39(1)]
80	Section	40	Deterioration during transit		Where goods are delivered at a distant place, the liability for deterioration necessarily incidental to the course of transit will fall on the buyer, though the seller agrees to deliver at his own risk. (Section 40)
81	Section	41	Buyer’s right to examine the goods		Where goods are delivered to the buyer, who has not previously examined them, he is entitled to a reasonable opportunity of examining them in order to ascertain whether they are in conformity with the contract. Unless otherwise agreed, the seller is bound, on request, to a ord the buyer a reasonable opportunity of examining the goods. (Section 41)
82	Section	42	Rule related to Acceptance of Delivery of Goods		The buyer is deemed to have accepted the goods when he intimates to the seller that he has accepted them, or when the goods have been delivered to him and he does any act in relation to them which is inconsistent with the ownership of the seller, or when, after the lapse of a reasonable time, he retains the goods without intimating to the seller that he has rejected them
83	Section	43	Buyer not bound to return rejected goods		Unless otherwise agreed, where goods are delivered to the buyer and he refuses to accept them, having the right so to do, he is not bound to return them to the seller, but it is su cient if he intimates to the seller that he refuses to accept them.
84	Section	44	Liability of buyer for neglecting or refusing delivery of goods		When the seller is ready and willing to deliver the goods and requests the buyer to take delivery, and the buyer does not within a reasonable time after such request take delivery of the goods, he is liable to the seller for any loss occasioned by his neglect or refusal to take delivery and also for a reasonable charge for the care and custody of the goods. Provided further that nothing in this section shall a ect the rights of the seller where the neglect or refusal of the buyer to take delivery amounts to a repudiation of the contract.
UNIT - 4: UNPAID SELLER
85	Section	45(1)	unpaid seller		A contract comprises of reciprocal promises. In a contract of sale, if seller is under an obligation to deliver goods, buyer has to pay for it. In case buyer fails or refuses to pay, the seller, as an unpaid seller, shall have certain rights. According to Section 45(1) of the Sale of Goods Act, 1930 the seller of goods is deemed to be an ‘Unpaid Seller’ when- (a) The whole of the price has not been paid or tendered and the seller had an immediate right of action for the price.
86	Section	45(2)	unpaid seller		(b) when a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been ful lled by reason of the dishonour of the instrument or otherwise. The term ‘seller ‘ here includes any person who is in the position of a seller, as, for instance, an agent of the seller to whom the bill of lading has been endorsed, or a consignor or agent who has himself paid, or is directly responsible for, the price [Section 45(2)].
87	Section	46	Unpaid seller’s right		Subject to the provisions of this Act and of any law for the time being in force, notwithstanding that the property in the goods may have passed to the buyer, the unpaid seller of goods, as such, has by implication of law-
88	Section	47 (1)	Seller’s lien		According to sub-section (1), subject to the provisions of this Act, the unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price in the following cases, namely:- (a) where the goods have been sold without any stipulation as to credit; (b) where the goods have been sold on credit, but the term of credit has expired; (c) where the buyer becomes insolvent.
89	Section	47 (2)			According to sub-section (2), the seller may exercise his right of lien notwithstanding that he in possession of the goods as agent or bailee for the buyer.
90	Section	48	Part delivery		Where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder, unless such part delivery has been made under such circumstances as to show an agreement to waive the lien.
91	Section	49 (1)	Termination of lien		According to sub-section (1), the unpaid seller of goods loses his lien thereon- (a) when he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal of the goods; (b) when the buyer or his agent lawfully obtains possession of the goods; (c) by waiver thereof.
92	Section	49 (2)			The unpaid seller of goods, having a lien thereon, does not lose his lien by reason only that he has obtained a decree for the price of the goods. [Sub-section (2)]
93	Section	50	Right of stoppage in transit		Subject to the provisions of this Act, when the buyer of goods becomes insolvent, the unpaid seller who has parted with the possession of the goods has the right of stopping them in transit, that is to say, he may resume possession of the goods as long as they are in the course of transit, and may retain them until paid or tendered price of the goods.
94	Section	51	Duration of transit
95	Section	52	How stoppage in transit is effected
96	Section	53	Effects of sub-sale or pledge by buyer		The right of lien or stoppage in transit is not a ected by the buyer selling or pledging the goods unless the seller has assented to it. This is based on the principle that a second buyer cannot stand in a better position than his seller. (The  rst buyer). The right of stoppage is defeated if the buyer has transferred the document of title or pledges the goods to a sub-buyer in good faith and for consideration.
			Case 3		(Mount D. F. Ltd. vs Jay & Jay (Provisions) Co. Ltd ).
97	Section	53 (1)			When a document of title to goods has been transferred to the buyer and the buyer transfers the documents to a person who has bought goods in good faith and for value i.e. for price, then, the proviso of sub-section (1) stipulates as follows: (i) If the last-mentioned transfer is by way of sale, right of lien or stoppage in transit is defeated, or (ii) If the last mentioned transfer is by way of pledge, unpaid seller’s right of lien or stoppage only be exercised, subject to the rights of the pledgee.
98	Section	53 (2)			However, the pledgee may be required by the unpaid seller to use in the  rst instance, other goods or securities of the pledger available to him to satisfy his claims. [Sub-section (2)].
99	Section	54	Right of re-sale		The right of resale is a very valuable right given to an unpaid seller. In the absence of this right, the unpaid seller’s other rights against the goods that is lien and the stoppage in transit would not have been of much use because these rights only entitled the unpaid seller to retain the goods until paid by the buyer.
			RIGHTS OF UNPAID SELLER AGAINST THE BUYER (SECTIONS 55-61)
100	Section	55 (1)	Suit for price		a) Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may sue him for the price of the goods. [Section 55(1)]
101	Section	55 (2)			(b) Where under a contract of sale the price is payable on a day certain irrespective of delivery and the buyer wrongfully neglects or refuses to pay such price, the seller may sue him for the price although the property in the goods has not passed and the goods have not been appropriated to the contract. [Section 55(2)].
102	Section	56	Suit for damages for non-acceptance		Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue him for damages for non-acceptance. As regards measure of damages, Section 73 of the Indian Contract Act, 1872 applies.
103	Section	60	Repudiation of contract before due date		Where the buyer repudiates the contract before the date of delivery, the seller may treat the contract as rescinded and sue damages for the breach. This is known as the ‘rule of anticipatory breach contract’.
104	Section	61	Suit for interest		Where there is speci c agreement between the seller and the buyer as to interest on the price of the goods from the date on which payment becomes due, the seller may recover interest from the buyer. If, however, there is no speci c agreement to this e ect, the seller may charge interest on the price when it becomes due from such day as he may notify to the buyer.
105			REMEDIES OF BUYER AGAINST THE SELLER
106	Section	57	Damages for non-delivery		Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue the seller for damages for non-delivery.
107	Section	58	Suit for speci c performance		Where the seller commits of breach of the contract of sale, the buyer can appeal to the court for speci c performance. The court can order for speci c performance only when the goods are ascertained or speci c.
108	Section	59	Suit for breach of warranty		Where there is breach of warranty on the part of the seller, or where the buyer elects to treat breach of condition as breach of warranty, the buyer is not entitled to reject the goods only on the bases of such breach of warranty. But he may – i) set up against the seller the breach of warranty in diminution or extinction of the price; or (ii) sue the seller for damages for breach of warranty.
109	Section	60	Repudiation of contract before due date		Where either party to a contract of sale repudiates the contract before the date of delivery, the other may either treat the contract as subsisting and wait till the date of delivery, or he may treat the contract as rescinded and sue for damages for the breach.
110	Section	64	‘Auction Sale
111	Section	64(a)	INCLUSION OF INCREASED OR DECREASED TAXES IN CONTRACT OF SALE (SECTION 64A)		Where after a contract has been made but before it has been performed, tax revision takes place. Where tax is being imposed, increased, decreased or remitted in respect of any goods without any stipulations to the payment of tax, the parties would become entitled to read just the price of the goods accordingly. Following taxes are applied on the sale or purchase of goods: w Any duty of customs or excise on goods, w Any tax on the sale or purchase of goods The buyer would have to pay the increased price where the tax increases and may derive the bene t of reduction if taxes are curtailed. Thus, seller may add the increased taxes in the price. The e ect of provision can, however, is excluded by an agreement to the contrary. It is open to the parties to stipulate anything regard to taxation.