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Unit 13: Transfer of Ownership

13.4.4 Buyer’s Remedies against Seller Notes

The buyer has the following rights against the seller for breach of contract: (i) damages for

non-delivery (Sec.57); (ii) right of recovery of the price; (iii) specific performance (Sec.58); (iv) suit
for breach of condition; (v) suit for breach of warranty (Sec.59); (vi) anticipatory breach (Sec.60);
(vii) recovery of interest (Sec.61).

13.5 Sale by Auction (Sec.64)

In the case of sale by auction the following rules apply:
1. When the goods are put up for sale in lots, each lot is deemed prima facie, to be the subject
matter of a separate contract of sale.
2. At an auction, the sale is complete when the auctioneer announces its completion by the
fall of the hammer or in other customary manner; until such completion any bidder may
withdraw his bid. It is also the practice to say ‘three times’.
3. A right to bid may be reserved expressly by or on behalf of the seller and where such right
is expressly reserved but not otherwise, the seller or any person on his behalf may bid at
the auction.

4. Where the sale is not notified to be subject to a right to bid on behalf of the seller, it shall
not be lawful for the seller to bid for himself or to employ any person to bid at such sale, or
for the auctioneer knowingly to take any bid from the seller or any such person. Any sale
contravening this rule shall be treated as fraudulent.
5. The sale may be notified to be subject to a reserved or upset price.

6. If the seller makes use of pretended bidding to raise the price, sale is voidable at the option
of the buyer.

Task When the sale complete in sale by auction process? Suggest.

13.6 Summary

z These conditions and warranties may be express or implied. Thus, sale takes place when
there is a transfer of ownership in goods from the seller to the buyer.
z A sale is an executed contract.
z The term seller includes any person who is in the position of a seller, e.g., an agent of the
seller, to whom a bill of lading has been endorsed, or a consignee or agent who has paid for
the goods or is responsible for the price (s.45).
z The word lien means to retain possession of.

z No gain or loss shall be recognized on the exchange of property held for productive use in a
trade or business or for investment if such property is exchanged solely for property of like
kind which is to be held either for productive use in a trade or business or for investment.
13.7 Keywords

Implied conditions and warranties: These are deemed to be incorporated by law in every contract
of sale of goods unless the terms of the contract show a contrary intention.

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