1. II
A)
X agrees to sell Y 200 Quintals of wheat out of a larger quantity lying in X’s store.
The agreed price is to be paid on the day appointed under the contract. Say with
reasons whether or not the property (ownership) in the wheat has passed on to Y.
The Sale of Goods Act applies only to movables other than actionable claims & money & not to
immovable’s which are governed by the transfer of property act, 1882.
Now here X agrees to sell Y 200 quintals of rice out of the larger quantity present in X stores, so now
these goods are Generic or Un ascertained goods. We need to ascertain whether the ownership has
been passed on to Y or not. A contract of sale of goods may be either a sale or an agreement to sell.
Sale – Under a contract of sale the property in the goods is transferred from seller to the buyer. In a
sale immediate payment or delivery is not necessary. Payment and delivery may be done on a future
date but the ownership of goods must be transferred immediately from the seller to the buyer.
Agreement to sell- An agreement to sell does not involve immediate transfer of property in the
goods. Here the transfer of property, ownership in the goods takes place at a future date or subject
to some conditions to be fulfilled.
In this case, since X agrees to sell the goods but has not separated the same (agrees to sell wheat
out of a larger quantity lying in X’s store). So it is an Agreement to sell. Hence according to the
agreement to sell the ownership in goods is not passed on to Y. (200 quintals should be ascertained so ownership has not passed)
B)
Geeta has sold some goods to Jagan. But she finds that Jagan is not willing to pay the price
for the goods purchased by him. Under such circumstances, is Geeta required to deliver the goods
sold by her to Jagan? Give reason for your answer.
The Sale of Goods Act applies only to movables other than actionable claims & money & not to
immovable’s which are governed by the transfer of property act, 1882.
According to stoppage in transit – right in lien Geeta has sold some goods to Jagan but Jagan has
refused the payment for the same. The property in goods has not passed to the buyer so the seller
has the right to with hold the delivery of goods. Hence in this case Geeta can with hold the delivery
of the goods.