MUSINGS

►  Transfer of Ownership in goods including Sale by non-owners An essential part of the Sale of Goods Act is the Transfer of Property, which passes from the seller to the buyer.  Possession is different from ownership, and these must be distinguished. Whereas a person may be the righteous owner of goods, he may not have the goods in his/her possession.  An agent, for example, is not the owner of the goods, he is in possession of, on behalf of the seller.  When there is a passing or transfer of property in the form of goods, the element of risk also passes. The essential aspect is the ‘ ownership ’ of the goods.  This is because several rights and liabilities of the transacting parties are directly connected with the issue of ownership. Usually, a contract of Sale takes place over a period of a few hours, a few days, or even a few months. During such time, there can be events which result in the entire contract of sale being affected.  The goods ma...

Meaning and Exception to the Doctrine of Caveat Emptor   The doctrine of Caveat Emptor is important in the context of the buyer, because the buyer must carefully examine the goods that he purchases. Meaning of the Doctrine of Caveat Emptor [Section 16]:   The term ‘Caveat Emptor’ means ‘let the buyer beware.’ The doctrine of caveat emptor has been given in the first paragraph of Section 16 and runs as follows “Subject to the provisions of this Act and any other law for the time being in force, 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”. This implies that it is not part of the seller’s duty to show the defects of the goods which he offers for sale, rather it is the duty of the buyer to ensure himself about the quality as well as the suitability of goods. The buyer must take care of his own purpose while purchasing the goods, i.e., it is his duty to purchase the good...

The Sale of Goods Act, identifies the terms, ‘Conditions’ and ‘Warranties’ as being of a prime significance in a contract of sale. Both the terms imply a promise that is made by the seller. However, the difference between Conditions and Warranties arises due to the nature of the promise that is made in each case. In the case of ‘Condition’ the impact is on the very essence of the contract; whereas, in the case of ‘Warranty’, the promise is in the nature of a collateral to the main purpose of the contract. It is thus evident that if there is a breach of either, a condition or a warranty, the effects will be different. Illustration 1:   Sita bought a wet grinder from an electric shop. The purpose for which the grinder was to be used was known to the seller. The grinder was unfit for the purpose. In this case there is a breach of an express condition by the electric shop and Sita is entitled to return the grinder and be refunded the money paid. Illustration 2:   Varuna...