Page 170 - DMGT102_MERCANTILE_LAWS_I

Mercantile Laws-I

Notes business, such as F.O.B. (free on board), C.I.F. (cost, insurance and freight) and ex-ship. This unit
will give you a brief knowledge of transfer of title of non-owners.
‘Goods’ means every kind of movable property, other than actionable claims and money; and
includes stocks 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.

13.1 Transfer of Title by Non-owners

Sec.27 lays down a general rule as to transfer of title, that is, it is only the owner of goods who can
transfer a good title. No one can give a better title than what he himself has. This rule is expressed
by the maxim, ‘memo dat quod non habet’ which means that no one can give what he himself has
not. If the seller, therefore, has no title, or he has defective title, the buyer’s title will be equally
wanting or defective, as the case may be, though he has purchased in good faith and for value.

Task Kaushal asks a dealer to supply him a shirt which not shrinks after use and wash.
The dealer supplies a shirt which shrinks after use and wash. Kaushal can reject the shirt
or keep the shirt and claim damage. Suggest.

Note Transfer of Title by Non-owners contained Secs. 27-30.

13.2 Performance of a Contract of Sale of Goods

The contract of sale of goods is to be performed. In this context, Secs.31-44 provide for the duties
of the seller and the buyer and the rules regarding delivery of goods.

13.2.1 Duties of the Seller and the Buyer

It is the duty of the seller to deliver the goods and of the buyer to accept and pay for them, in
accordance with the terms of the contract of sale (Sec.31). However, no delivery need be given,
if the buyer is not willing to pay the price, nor need the buyer pay the price, unless the seller is
ready and willing to give delivery, as unless otherwise agreed, delivery and payment of price are
concurrent conditions (Sec.32).
The seller has the duty of giving delivery of goods according to the (i) terms of the contract, and
(ii) rules contained in the Act. The buyer of the goods has the duty to pay for the goods, accept
delivery and pay compensation to the seller in case he wrongfully refuses to accept delivery.
13.2.2 Delivery

Delivery is defined as a voluntary transfer of possession from one person to another [Sec.2(2)].

Sec.33 provides that delivery of goods sold may be made by doing anything which the parties
agree shall be treated as delivery or which has the effect of putting the goods in the possession of
the buyer or of any person authorised to hold them on his behalf.

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