Core concepts
- 01Sale: transfer of property in goods for a price (Sec 4).
- 02Agreement to sell becomes a sale when conditions are fulfilled / time elapses.
- 03Conditions vs Warranties — condition is essential, breach allows repudiation; warranty allows damages only.
- 04Caveat emptor: buyer beware — exceptions like fitness for purpose, merchantable quality, sale by sample.
- 05Unpaid seller's rights: lien, stoppage in transit, resale, suit for price.
Flowchart
Contract of Sale | +-- Sale (property transferred) +-- Agreement to Sell (future) | v Conditions (essential) vs Warranties (collateral) | v Risk follows property (Sec 26)
Exam-critical pointers
- ⭐Goods: existing, future, contingent — perishing of specific goods voids contract (Sec 7-8).
- ⭐Doctrine of nemo dat quod non habet — no one gives what one has not (Sec 27); exceptions exist.
- ⭐Unpaid seller's lien lost when buyer obtains possession or seller waives.
- ⭐Implied condition of fitness applies when buyer makes known purpose & relies on seller's skill.
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