Page 174 - DMGT102_MERCANTILE_LAWS_I

Mercantile Laws-I

Notes Lien means to retain possession.

Unpaid seller: A person who is in possession of goods is entitled to retain them in his possession
until payment.
Warranty: A warranty is a stipulation collateral to the main purpose of the contract, the breach of
which gives rise to a claim for damages but not to a right to reject the goods and treat the contract
as repudiated.

13.8 Self Assessment

Fill in the blanks:
1. Conditions and warranties are said to the …………… when the terms of the contract
expressly, provide for them
2. The …………… is a fundamental principle of the law of sale of goods.
3. The …………… of goods refers to the custody of goods.

4. …………… lay down the rules which determine when property passes from the seller to
the buyer.
5. …………… lays down a general rule as to transfer of title.

6. …………… is defined as a voluntary transfer of possession from one person to another.
7. …………… provide for the duties of the seller and the buyer.

13.9 Review Questions

1. When may a seller give a better title to the buyer than he himself has in the goods sold? or
‘No one can give what he himself has not’. Elucidate.

2. Explain the rules relating to delivery of goods.
3. What is (i) an F.O.B. contract. (ii) a C.I.F. contract?

4. Define an unpaid seller. What are the different rights of an unpaid seller?
5. Distinguish between the right of lien and stoppage in transit.

6. State the circumstances when the right of stoppage in transit ends.
7. When can a seller resell the goods?
8. What remedies are available to a seller for breach of contract of sale?
9. Discuss the buyer’s remedies against seller where there is a breach of contract.
10. State the law which governs the sale of goods by auction.

Answers: Self Assessment

1. Express 2. Doctrine of caveat emptor

3. Possession 4. Delivery
5. Sec.27 6. Secs.31-44
7. Secs.18 to 25

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