Amity Global Business School
Business Law Module 3: Sale of Goods Act: CASES
Case No 1)
Ms Prachi Dutt has hired 100 laptops for her office @Rs30000 per laptop (Rs3000000)
for a monthly rent of Rs1 lakh. The stipulation is that if Ms Prachi pays the rent regularly
for 20 months, she is entitled to either exercise the option of purchasing all the laptops
or return the laptops immediately after 20 months. However, if purchase option is
exercised, the instalment facility would continue. She decides to exercise the purchase
option. Is this a valid contract?
Case No 2)
Mr Sukumar as an Agent of Ringfish Airlines entered into an agreement with Mr
Parashuram chartering a Ringfish aircraft, which Mr Parashuram badly needed for
holding an international conference in Singapore along with 100 delegates from India.
From the day of the agreement, all the Ringfish Aircrafts were grounded on account of
pilot strike. Both Mr Sukumar and Mr Parashuram were not aware of this state of affairs
of the airlines. Is the contract valid?
Case No 3:
Mr Pruthvi Raj Chavan of Bangalore entered into contract for selling 10000 kgs of
grapes in his garden in Kolar with Mr Menezes of Goa, a fruit merchant. The grapes
were destroyed before the date of the agreement though Mr Pruthvi Raj Chavan was
not aware of the same. The grapes could, however, be used for preparing wine. Mr
Pruthvi Raj Chavan compels Mr Menezes to purchase the same. Is the contract valid?
Case No 4:
Mr Shivakumar, a wholesaler of Textiles holds the Railway Receipt for two wagons of
Textile goods transported from Surat to Bangalore. He endorses the same in favour of
his retail buyer for a consideration of Rs 75 lakh. Is this a valid contract.
Case No 5:
Jagadeesh a Dealer in two wheelers sells a brand new ACCESS 125 for a
downpayment of Rs25000/- and the balance in instalments of Rs2000/- per month for
50 months. Is this is a contract of sale of goods?
Case No 6:
Mr Jigar Dhuvad agrees to sell his second hand Maruthi Omni Van to Mr Katta for a
price to be determined by Mr Dutta. Mr Katta took delivery of the Vehicle. Mr Dutta
refuses to fix the price. Mr Jigar Dhuvad wants the vehicle back. What is the position?
Case No 7:
Mr A from Vizianagaram in Andhra sold 100 quintals of Andhra rice (with necessary
permit) to Mr B in Bangalore but yet to be delivered. Before the delivery, the Karnataka
Government has banned interstate movement of rice.
Case No 8:
Mr X who has taken a Machinery from Mr Y on hire purchase basis for 20 months. The
option was to be exercised at the end of 10 months. Before exercising the option, he
sold the machinery to Mr A who takes without knowledge of the previous hire. Will A
gets a good title?
Case No 9:
Mr A sold his old Air conditioner to Mr B stating that it is just one year old. Mr B took it
depending on A’s statement. Later Mr B learns that the Air conditioner is three years
old. Can Mr B return the Air conditioner and get back his amount? Will your answer
differ if the AC was working when A delivered and now it has stopped working.
Case No 10:
Mr A sold his Home Theatre to Mr B on a condition that Mr B shall check the status
through a qualified electronic engineer. Mr B has taken the Home Theatre after his
engineer verified and estimated the price. However, Mr A demanded Rs 2000/- more
than what the engineer fixed. Mr B agreed and took delivery. The Home Theatre has
broken down within one month. Can B return the goods.
Case No 11:
Mr X had sold a Car to Mr Y. In fact, the Car belongs to Mr A and later on it is learnt that
the RC book was forged and made in the name of Mr X. Mr Y having paid the price,
wants to have the car and refuses to return the same to Mr A.
Case No 12:
M from Kashmir Sold to Mr N of Singapore 500 tons of Apple packed in wooden cases
each containing 30 tonnes. M delivered a substantial portion of goods (say 350 tonnes)
packed in carton boxes with proper cushions. Can Mr N reject the whole goods and
rescind the contract.
Case No 13.
A purchased 5 old lorries (trucks) from Mr B mentioning that he required lorries to
transport the cows from the shandy market to the villages. As the lorries had completed
the life of 15 years, the fitness was not given. Without indicating this, B had sold the
vehicles. Within 15 days of purchase, two lorries broke down and 6 animals were dead
for want of food. What are the remedies for Mr A.
Case No 14:
Mr A has purchased 500 grams(ml) of Ghee of a particular brand from a nearby retail
store. On consuming the ghee, A’s wife was to be hospitalised and she died. What is
the remedy?
Case No 15:
Mr A sold a tin of cleaning acid to Mrs B. Mr A knew that it was likely to be dangerous to
Mrs B if she does not exercise caution and special care while opening the lid. Mrs B
opened the tin in the normal course and her face was defaced by sprinkles of acid. Can
she file a case against Mr A
Case No 16.
Mr A has sold to Mr B his assembled computer (desktop) on a condition “as is where is”.
Mr B starts the desktop at his house and to his dismay the monitor has gone.
Case No 17.
Ms Pooja goes to a beauty saloon. She asks for a facial and a hairdo. She does not
disclose any allergies to the beautician. The beautician applied some hair dye without
asking anything about the possible allergies. Ms Pooja developed dermatitis. Is the
beautician liable?
Case No 18:
Mr A, a farmer, who wants to go abroad for a year has requested Mr B to look after his 4
cows for a period of one year for a consideration (payment of service charges). When A
returned he found that 2 cows had given birth to calves. Mr B returned only the four
cows and refused to hand over the calves.
Case No 19.
An unpaid seller Mr X has given notice to the transport company exercising his right of
stoppage in transit. Mr Y who is the buyer is also due to the transport company on some
other obligation. The Transport Company wants to exercise their lien on the goods
superceding the unpaid seller’s right of stoppage in transit.
Case No 20.
Mr A sells certain goods to Mr B, the delivery date being 1 st July 2011 but the payment
was to be made on or before 1st April 2011. B refuses to pay on 1st April 2011 stating
that the delivery of goods should be made before the payment is made and that the
property in the goods has not passed. Can A sue B for the price before the delivery of
the goods.
