Sales of goods act 1930

PRESENTATION ON
Sale of Goods Act, 1930 (Bangladesh)
1
SaleofGoodsAct,1930(Bangladesh)

Submitted By:
Group name : No Title
Course name : Legal Environment of Business (MGT 202)
Section : I
Group Members :
2
No Name ID Program
1 Md. Manik Mia 12202146 BBA
2 Pulok kundu 12202144 BBA
3 Lucky Hasan 12202149 BBA
4 Shakila Akter 12202155 BBA
5 Md. Abdul Mannan 12202081 BBA

Submitted To:
Course Instructor: Mr. Kazi Khaled Shams Chisty
Legal Environment of Business (MGT 202)
College of Business Administration (CBA)
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What is a sale?
A sale is the act of selling a product or service in return for money or
other compensation.
Why the Sales of Goods Act important?
The Sale of Goods Act 1930 is a very important and relevant legislation to
understand in order to avoid the problems many consumers face when
they make purchases.
It is advised to know what rights you have and how you can resolve the
situation in case of any issue
1. Short title, extent and commencement, -
(1) This Act may be called the 2** Sale of Goods Act, 1930.
(2) It extends to the whole of Bangladesh.
(3) It shall come into force into force on the 1st day of July, 1930.
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2. Definitions. - In this Act:
“Buyer" means a person who buys or agrees to buy goods.
Clause: 2-1
"Seller" means a person who sells or agrees to sell goods.
Clause: 2-13
“Price" means the money consideration for a sale of goods.
Clause:2-10
“Property" means the general property in goods, and not merely
a special property,
Clause:2-11
"Delivery" means voluntary transfer of possession
(ownership)from one person to another.
Clause: 2-2
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"Deliverable state’’ Goods are said to be in a "deliverable state"
when they are in such state that the buyer would under the contract
be bound to take delivery of them. Clause: 2-3
“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; Clause: 2-7
"Specific goods" means goods identified and agreed upon at
the time a contract of sale is made. Clause: 2-4
Example: Karim sold his wrist watch to Rahim for 500 TK

"Future goods" means goods to be manufactured or produced
or acquired by the seller after the making of the contract of sale;
Clause: 2-6
Example: Rahim has a mango garden. Rahim makes an agreement
with karim that all the mangoes which will grow next year in
the mango garden of Rahim, will be sold to Karim for an amount
of 100000 Tk.
Since the agreement is made for future goods or mangoes which
will grow in future time that is why the mangoes will be treated
as future goods.
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Contract of Sale
What is Contract for sale of goods?
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. Clause:4-1
(2) A contract of sale may be absolute (The way it is) or conditional,
Clause: 4-2
Example: Karim has a horse. Karim hands over the horse to Rahim
for the amount of 20000Tk or karim agrees to hand over the horse
to rahim within three(3) days.For both party this is an example of
Contract for sale of goods.
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Why it is important?
Because all sales involve a "contract" of one kind or another, either
written or un-written(verbal).
A contract assures that both parties to the transaction are protected
and understand what the ground rules of the transaction are.
What is Caveat Emptor?
 [Latin, Let the buyer beware.] A warning that notifies a buyer
that the goods he or she is buying are "as is," or subject to all
defects.
 When a sale is subject to this warning the purchaser assumes the
risk that the product might be either defective or unsuitable to his
or her needs.
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This rule is not designed:
 It merely summarizes the concept that a purchaser must examine,
judge, and test a product considered for purchase himself or
herself.
 However The modern trend in laws protecting consumers has
minimized the importance of this rule.
 Although the buyer is still required to make a reasonable
inspection of goods upon purchase, increased responsibilities
have been placed upon the seller, and the doctrine of caveat
venditor (Latin for "let the seller beware") has become more
established.
 Generally, there is a legal presumption that a seller makes
certain warranties unless the buyer and the seller agree
otherwise.
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Sale and Agreement of Sale: 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 fulfilled, the contract
is called in agreement to sell. ` Clause: 4-3
Example: Karim sells 50 kg of rice to Rahim for an amount. Or
Karim accepts money from Rahim and promises that Karim
will send Rahim 50 kg of rice within three(3) days. Those
Two(2) examples are the example of Sale and Agreement of
Sale.
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Offer and acceptance:
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 installments,
or that the delivery or payment or both shall be postponed.
Clause: 5-1
Method of Contract:
Subject to the provisions(law) 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 party by word of mouth or may
be implied from the conduct of the parties.
Clause: 5-2 12

6. Existing or future goods.
(1) Goods present at the time of transaction with the seller
(2) Future Goods means goods to be manufactured or produced by
the seller after the making of the contract of sale.
Clause: 6-2
Goods perishing before making of contract:
Where there is a contract for the sale of specific goods, the
contract is void (cancelled) 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 in the contract.
Clause: 7
13

Goods perishing before sale but after agreement to sell:
Where there is an agreement to sell specific 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. Clause: 8
Example: Rahim has a horse. Karim wants to buy that horse. And
they make a contract. But in the contract it was mentioned that
Karim will ride the horse for 8 days and if then Karim likes the
horse only then Karim will make payment of the horse to Rahim
and if Karim does not like the horse he will return the horse to
Rahim.
But after three days has passed the horse dies without any parties
fault in this case the contract between Rahim & Karim will be
treated as cancelled.
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Price ascertained by joint agreement or by the course of
dealings:
The price in a contract of sale may be fixed by the contract or
may be left to be fixed in manner thereby agreed or may be
determined by the course of dealing between the parties.
Clause: 9-1
Example: Rahim purchases two tons of wheat from Karim in the
month of May. But it was decided by them that the price of
those wheat will be decided by them on the 1st of July
according to the market value as of July 1st.
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Ascertainment of Reasonable Price: Where the price is not
determined in accordance (according to) with the foregoing
(previous) provision (condition), 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.
Clause: 9-2
Example: Rahim delivered two tons of wheat from Karim on May
1st . But when Karim purchased those wheat from Rahim the price
of those wheat was not fixed. In this case the price of those wheat
will be fixed as the market price of wheat as of May 1st.
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According to Sale of Goods Act, 1930 what is Condition?
A condition is a stipulation/conditions essential to the main purpose
of the contract the breach (break)of which gives to right to treat
the contract as repudiated (Reject).
Clause: 12-2
 Example: Karim wants to buy some furniture. He goes to a
furniture shop and says to the furniture shop owner that Karim
will only purchase furniture’s from the furniture shop only if the
seller provides Furniture’s to Karim made of Segun Wood.
 In this case the “ Segun Wood” is the Condition (main
requirements) in case of purchasing furniture from the seller.
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What is warranty?
According to Sale of Goods Act, 1930 A warranty is a
stipulation collateral to the main purpose of the contract, the
breach of which (collateral) gives rise to claim for damages but
not to a right to reject the goods and treat the contract as
repudiated.
Clause: 12-3
Example:Karim wants to buy some furniture. He goes to a
furniture shop and says to the furniture shop owner that Karim
will only purchase furniture’s from the shop only if the seller
provides Karim Furniture’s made of “Good Wood’’.
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Voluntary Waiver (1) Where a contract of sale is subject to any
condition to be fulfilled 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. Clause: 13-1
Compulsory Waiver:
Where a contract of sale is not severable (unbreakable by the buyer)
If a buyer has accepted goods or part of goods thereof the
breach of any condition that suppose to be fulfilled 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
effect. Clause: 13-2
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Condition as to title:
There is an implied condition on the part of the seller that, in
the case of sale, he has a right to sell the goods and that, in the
case of an agreement to sell, he will have a right to sell the
goods at the time when the property is to pass.
Clause: 14-A
Sale by description:
Where there is a contract for the sale of goods by description
there is an implied condition that the goods shall correspond
with the description. Clause: 15
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Sale by sample.
(1) A contract of sale is a contract for sale by sample where there
is a term in the contract, express or implied, to that effect.
(a) That the bulk shall correspond with the sample in quality; that
is the product must match as described earlier.
(b) that the buyer shall have a reasonable opportunity of
comparing the bulk with the sample; That is the buyer must be
given enough time to match the product with the sample.
(c) that the goods shall be free from any defect, rendering them
un merchantable, which would not be apparent on reasonable
examination of the sample. That is the product must be
supplied as the sample. No fault can be there.
Clause: 17
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Do You Have Any Question?
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Sales of goods act 1930

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