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Mercantile Laws-I

Notes 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.
12.4 Meaning of Price

12.4.1 Meaning

Price means the money consideration for the sale of goods. Price is an integral part of a contract of
sale. If price is not fixed, or is not capable of being fixed, the contract is void ab initio. As to how

the price is to be fixed Secs.9 and 10 lay down certain rules. According to Sec.9, the price may (i)

either be fixed by the contract, or (ii) agreed to be fixed in a manner provided by the contact, e.g.,

by a valuer or (iii) determined by the course of dealings between the parties.
Example: In a particular trade, there is a usage to deduct discount in determining the
price. The usage is implied by the course of dealings between the parties.

12.4.2 Mode of Payment of the Price

The seller is not bound to accept any kind of payment – except in legal tender money unless there
is an agreement express or implied to the contrary or unless the seller is estopped from disputing
the mode of payment. Thus, he is not bound to accept payment by cheque.

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