Sale of Goods Act 1930 - Key Provisions

This is TRUE. Implied conditions and warranties in sale contracts can indeed be excluded or modified in three ways: by express agreement between parties, by established course of dealing between them, or by custom/usage of trade. These exceptions allow flexibility while protecting buyers where parties haven't clearly agreed otherwise. This balances contractual freedom with consumer protection.

Both statements are TRUE. (i) M can reject the excess 200 bales entirely or accept exactly what he ordered (1000) and reject the rest - this is the buyer's right on oversupply. (ii) If M accepts all 1200 bales, he must pay the contract rate for all accepted goods. When buyer voluntarily accepts excess delivery, he can't insist on paying only for ordered quantity - he's bound by contract price for what he takes.

This is TRUE in principle, though the question has typos (neglects vs refuses, sure vs sue). When seller wrongfully refuses to deliver goods, buyer can sue for damages. The standard measure is difference between contract price and market price at time of delivery. This puts buyer in position they would have been had seller performed - buyer can purchase substitute goods at market price and recover the extra cost from seller.

This is TRUE. An agreement to sell is an EXECUTORY contract meaning the essential obligations remain to be performed - property hasn't passed yet. It becomes a sale (executed contract) when property transfers. This distinction matters for tax, insolvency, and rights of parties - in an agreement to sell, the seller still owns the goods and can resell, whereas in a sale, buyer owns them.

A contract of sale creates jus in rem (right against the world) for the buyer. Once property passes, the buyer can enforce their ownership rights against anyone, including the seller. This distinguishes sale from agreements where only personal rights (jus in personam) are created.

Historically accurate. Before the Sale of Goods Act 1930, sale of goods law was in Chapter VII of the Indian Contract Act 1872. The 1930 Act codified and specialized these rules while maintaining general contract principles.

Property passage means ownership transfer. When property in goods passes to the buyer, the seller loses all ownership rights and the buyer becomes the legal owner. This is fundamental to sale law.

True. The consideration (price) in a sale can be mixed - partly money and partly goods. This is valid consideration under contract law. The Sale of Goods Act recognizes such mixed consideration arrangements.

Under Sale of Goods Act, 'goods' includes all movable property. Growing crops and grass attached to land are included as 'goods' (though attached to land, they're treated as movable when intended to be severed). Stocks/shares are movable but usually treated separately. Immovable property is explicitly excluded.

Documents of title (like dock warrants, warehouse receipts) authorize the holder to deal with goods as the owner would. They represent the goods and enable transfer of constructive possession and control.

Right of lien is the right to retain possession of goods until a debt (usually price) is paid. It's a possessory security - you keep possession but don't own the goods. The unpaid seller has this right under Sale of Goods Act.

True. If the contract requires payment before delivery, the seller reserves the right of disposal until payment. This is a protective right - the seller hasn't fully transferred ownership until the price is paid.

In a SALE (as opposed to an agreement to sell), property in goods passes to the buyer immediately. Risk may or may not pass simultaneously depending on terms. The question correctly identifies that property passage is the essential characteristic of a completed sale.

Under commercial law and sales principles, the owner of merchandise retains legal rights over goods even after transfer to carriers or intermediaries. When third parties (such as carriers, warehouse operators, or other handlers) damage or destroy goods through negligent or intentional actions, the owner has standing to sue for damages. This principle protects property rights throughout the supply chain.

CIF (Cost, Insurance, Freight) is an international shipping term where the seller arranges insurance and freight to the destination port. Under CIF contracts, banks typically handle documents against payment (cash against documents) or against acceptance of a draft (documents against acceptance). This protects both buyer and seller by ensuring payment is secured before document transfer.

Section 35 of the Sale of Goods Act establishes that unless otherwise agreed, the seller is not obliged to deliver goods until the buyer requests delivery. This protects sellers from having to deliver goods before the buyer is ready to receive them. The buyer's application for delivery is a necessary step in the performance timeline.

A contract of sale is a legal category encompassing both completed sales (where property has transferred) and agreements to sell (where property transfer is to occur in the future). This distinction is fundamental to sales law. A completed sale transfers ownership immediately, while an agreement to sell creates obligations for future transfer.

Anticipatory breach occurs when one party clearly indicates they will not perform when performance is due. The injured party has two options: (1) treat the contract as still valid and wait for performance date, or (2) treat the contract as rescinded immediately and sue for damages. This gives flexibility in responding to repudiation.

An agreement to sell typically involves future goods (to be acquired or manufactured) or contingent goods (whose acquisition depends on uncertain events). Before goods are ascertained or existing, the transaction is an agreement to sell rather than a completed sale. This distinguishes present vs. future property transfers.

Before goods are ascertained (specifically identified), the contract is an agreement to sell rather than a completed sale. Uncertain or unascertained goods cannot be the subject of an immediate property transfer. Once goods are ascertained, the agreement may convert to a sale if all conditions are met.

When a buyer becomes insolvent before paying, the unpaid seller retains the right to withhold delivery until payment is received. This protects sellers from delivering goods to insolvent buyers who may not be able to pay. The seller's lien or right of retention is triggered by buyer insolvency.

Conditions (essential terms) and warranties ( subsidiary promises) in contracts can be either express (explicitly stated in the contract) or implied (automatically included by law or custom). The law recognizes both forms, giving parties flexibility in specifying terms or relying on default legal provisions.

A CIF contract is indeed a contract for the sale of insured goods. The CIF term specifically requires the seller to obtain insurance coverage for the goods during transit to the named port of destination. This insurance component distinguishes CIF from other shipping terms and is integral to the contract type.

When goods are in transit with a carrier acting in an independent capacity (not as the buyer's agent), the seller retains the right of stoppage in transit. This allows the seller to halt delivery and reclaim goods if the buyer becomes insolvent before taking delivery. The seller can exercise this right upon discovering the buyer's insolvency.

When an unpaid seller delivers goods to a carrier or bailee for transmission to the buyer without reserving the right of disposal, they lose their lien on the goods. The lien is a right to retain possession until payment is received, but this right is lost when the seller relinquishes control by handing goods to a third-party carrier without reserving disposal rights. This is a correct statement of commercial law under the Sale of Goods Act.