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Law of Sale of Goods and Consumer Protection Topics:


Indian Contract Act was, from Section 76 to 123 contained the sale of goods. But later it was repealed and a separate Sale of Goods Act 1930, has been passed by union legislature. It contains 66 sections and in the following chapter some important sections are mentioned.

The word business has been defined as the sale of goods and services for the purpose of earning profit. So the entire arena of business is standing on the basis of the sale of goods and services. To regulate the sale of goods the central government passed the Sale of Goods Act,1930.It contains 66 sections .The Act speaks about formation of sale of goods contracts, effects of such contracts, performance of the contract, rights of unpaid seller and suits for the breach of contract.

Under Sec 2(1) of the Act buyer has been defined as a person who buys or agrees to buy goods.2(7) goods means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, gross and things attached to or forming part of the land which are agreed to be served before sale or under the contract of sale.

Under section4 sale and agreement to sell has been defined as:

1. A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be contract of sale between one part owner and another.

2. A contract of sale may be absolute or conditional.

3. Where under a contract of sale, the property in the goods is transferred from the seller to the buyer, the contract is called sale, but where the transfer or the property in the goods is to take place at a future time subject time subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell.

4. An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred.


Under sec11 unless a different intension appears from the terms of the contract, stipulations as to time of payment are not deemed to be of the essence of a contract of sale. Whether any other stipulation as to time is of the essence of the contract or not depends on the terms of the contract. Under section 12 a stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warranty. A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated. 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.


Although there are two hundred central and state statutes that have some bearing on environmental protection, in most cases the environmental concern is incidental to law’s principal object. For example, the Indian Fisheries Act of 1897 prohibited the destruction of fish by the use of explosive or by poisoning the water. Such scattered and piecemeal ‘environmental’ provisions held the field until the 1970s,Some of the important environmental legislations are as follows;


To implement the decisions taken at the United Nations Conference on the Human Environment held at Stockholm in June, 1972 Parliament enacted the nationwide Air Act under Article 253 of the Constitution.


The Water Act of 1974 was the culmination of over a decade of discussion and deliberation between the Centre and the States. The history and the preamble of the Water Act suggest that only state government can enact water pollution legislation.


The Water Cess Act was passed to help meet the expense of the Central and state water boards. The Act creates economic incentives for pollution control through a differential tax structure and requires local authorities and certain designated industries to pay a cess for water consumption.


In 1972, Parliament enacted the Wild Life Act pursuant to the enabling resolution of 11 stat under Article 252 (1) of the Constitution. The wild Life Act provides for state wildlife advisory boards, regulations for hunting wild animals and birds, establishment of sanctuaries and national parks, regulations for trade in wild animal products and trophies, and judicially imposed penalties for violating the Act.


This law (PLIA) was enacted to provide immediate relief to the victims of an accident involving a hazardous substance. To achieve this object, the Act imposes ‘no-fault’ liability upon the owner of the hazardous substance and requires the owner to compensate the victims irrespective of any neglect or default on her part.

THE ENVIRONMENT (protection) Act, 1986

Concerns over the state of environment have grown the world over since the sixties. The decline in environmental quality has been evidenced by increasing pollution, loss of vegetal cover and biological diversity, excessive concentrations of harmful chemicals in the ambient atmosphere and in food chains, growing risks of environmental accidents and threats to life support systems. The world community’s resolve to protect and enhance the environmental quality found expression in the decision taken at the United Nations Conference on the Human Environment held in Stockholm in 1972, Government of India participated in the conference and strongly voiced the environment concerns. While several measures have been taken for environmental protection both before and after the conference the need for legislation further to implement the decisions of the conference has become increasing evident.

Although there are existing laws dealing directly and indirectly with several environmental matters, it is necessary to have a general legislation for environmental protection .Existing laws generally focus on specific types of pollution or on specific categories of hazardous substances .Some major areas of environmental hazards are not covered. There also exist uncovered gaps in areas of major environmental hazards. There are inadequate linkages in handling matters of industrial and environmental safety.

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Review Questions
  • 1. Who is consumer?
  • 2. What is the need for consumer protection?
  • 3. Write a note on different consumer dispute redressal councils.
  • 4. What is sale of goods?
  • 5. Differentiate conditions and warranties.
  • 6. What are the remedies available for non-performance of the contract?
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