CAIIB · BRBL · Chapter 42

Meaning and Essentials of a Contract of Sale

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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Q

1 — Sale / Agreement to Sell?

A

Sale: A contract in which the parties have already performed their part.; Agreement to Sell: An act in which the parties are yet to perform their mutual promises.

Q

When did the Sale of Goods Act, 1930 come into force?

A

The Sale of Goods Act came into force on 1 July 1930.

Q

2 — Sale / Agreement to Sell?

A

Sale: Ownership of goods has already passed, irrespective of whether the goods are delivered or not.; Agreement to Sell: Ownership of goods is yet to pass from seller to buyer at a later date, after fulfilment of certain conditions.

Q

Which earlier law governed sale of moveable goods before the Sale of Goods Act, 1930?

A

Chapter VII (Sections 76–123) of the Indian Contract Act, 1872.

Q

3 — Sale / Agreement to Sell?

A

Sale: The risk in the goods is with the buyer.; Agreement to Sell: The risk in the goods is still with the seller and passes to the buyer only after the agreement to sell becomes a sale.

Q

Which UK statute did the Sale of Goods Act, 1930 heavily borrow from?

A

The UK Sale of Goods Act, 1893.

Q

4 — Sale / Agreement to Sell?

A

Sale: If the seller does not deliver the goods, the buyer can file a suit and demand specific performance and delivery of the goods.; Agreement to Sell: If the seller does not deliver the goods, the buyer can only claim damages in a suit and cannot demand delivery, as the sale is not yet concluded.

Q

Which law governs immoveable property sales in India?

A

The Transfer of Property Act, 1882 governs immoveable property sales.

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