mgt 611 fall 2011( gdb required )plzzz answer

[diya ali]

Topic Covered:
Sale and Agreement to Sell

Abstract:

It has been defined in section 4(1) of the Act which is given below:

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 a contract of sale between one part-owner and another.

Essentials:

· An agreement
· Parties (there must be two parties)
· Transfer of property (that is transfer of ownership)
· Sale of goods (movable property)
· The consideration being the price
· Sale

Sale:

It has been defined in section 4 (3) of the Act which is given below:

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

Agreement to sell:

· Contract of sale is comprised of sale as well as agreement to sell.
· When transfer of ownership in the goods is to be transferred from seller to buyer at some future date, it shall be called as agreement to sell.
· Agreement to sell is not sale of goods.


Case 01:

Mr. Adil is a local dealer of new and second hand mobiles of different companies. On 1st January 2012, Mr. Adil agreed with Mr. Kashif that he will sell Mr. Kashif a second hand Nokia C203 on 15th January 2012 for a sum of Rs. 7,000/-. But on due date, Mr. Kashif did not contact to Mr. Adil as he had no money on the prescribed date and asked for extension in payment but Mr. Adil did not agree and sold this mobile to Mr. Anwar on the same price. Do you think that Mr. Adil have the right to resell the mobile to Mr. Anwar? Is it sale or agreement to sell between Mr. Adil and Mr. Kashif? Justify your answer.

Case 02:

Mr. Naeem, a dealer in automobiles; agreed to give a “Suzuki” Mehran 2008 to Mr. Atiq Khan on the terms that Rs. 2,50,000/- should be paid by him immediately and Rs. 1,50,000 more in two monthly equal installments. It was further agreed that if the motor car is found defective then Mr. Atiq Khan may return it within a week but not later. Mr. Atiq Khan, however found the motor car defective but did not return to the seller (Mr. Naeem) and also makes default in paying the last installment. Do you think that Mr. Naeem could take back the motor car on his default? Justify your answer.

Discussion Question:

Part first:

Provide the justifications of the required questions in each case separately.

Part second:

Compare and contrast of both cases (given above) and discuss the validity of the contract with reference to sale and agreement to sell.

Note: Limit yourself within the context of case studies.

[diya ali]

plzzz reply kr dn