Page 135 - DCOM103_COMMERCIAL_LAW

Commercial Law

Notes 13.1 Definitions of Contract of Sales

Definition (S. 2)
Buyer: “Buyer” means a person who buys or agrees to buy goods.
Seller: “Seller” means a person who sells or agrees to sell goods.

Delivery: “Delivery” means voluntary transfer of possession from one person to another.
Deliverable State: Goods are said to be I a deliverable state when they are in such state that the
buyer would, under the contract, be bound to take delivery of them.
Document of title to goods: “Document of title to goods” includes a bill of lading, clock warrant,

warehouse-Keeper’s certifi cate, wharfi nger’s certificate, railway receipt, warrant or order for the
delivery of goods, and any other document used in the ordinary course of business as proof of
the possession or control of goods, or authorizing the possessor of the document to transfer or
receive goods thereby represented.

A railway receipt is a document issued by the Railway Company which is to be handed over at
the destination of the goods, in return for the delivery of the goods named in such document.
A bill of lading has been defi ned by Scruttion as “a receipt for goods shipped on board a ship,
signed by the person who contracts to carry them or his agent, and stating the terms on which the
goods were delivered to and received by the ship.
A dock-warrant is a document issued by a dock or wharf owner setting out the detailed

measurements (or weight) of a specific parcel of goods, and declaring or certifying that the goods
are held to the order of the person named therein.
A warehouse-keeper’s certifi cate or a wharfi nger’s certificate is a document which is issued by the

warehouse-keeper or wharfinger, stating that certain goods which are specified in the certifi cate

are in his warehouse. However, such a certificate, to be a document of title, must be in the nature
of a warrant.
Future goods: “Future goods” means goods to be manufactured or produced or acquired by the
seller after the making of the contract of sale.

Specifi c goods: “Specific goods” means goods identified and agreed upon at the time a contract

of sale is made.
Insolvent: “Insolvent” A person is said to be “insolvent” who has ceased to pay his debts in
the ordinary course of business, or cannot pay his debts as they become due, whether he has
committed an act of insolvency or not.

Mercantile agent: “Mercantile agent” means a mercantile agent having in the customary course
of business as such agent, authority (i) to sell goods, or (ii) to consign goods for the purpose of
sale, or (iii) to buy goods, or (iv) to raise money on the security of goods.
Price: “Price” means the money consideration for a sale of goods.
Property: “Property” means the general property in goods, and not merely a special property.
Quality of goods: “Quality of goods” includes their state or condition.

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