legal aspects (transfer of ownership)

Legal aspects of Business

Team members:

Sourabh Sheth M1250Sunil Gaikwad M1252Tushar Kharate M1254Vikesh Bangera M1256Vipula Gangurde M1258Vishwanathan Iyer M1260Wasif Parkar M1261

Transfer of ownership

Rights of unpaid seller

Contract involving rail or sea transit

Transfer of ownership

Def : transfer of property in goods is distinct from delivery of goods. Property or ownership may pass to the buyer without delivery of the goods; while delivery of goods may not constitute transfer of ownership in the goods.

The time when property passes:1)in the case of specific or ascertained 2)in the generic or unascertained or future goods.

When property in the goods does not pass:1) If the seller reserves the right of disposal of

goods.

2) where he sends the bill of exchange, till the buyer accepts the same.

Rights of unpaid seller

Unpaid seller (Def) : Unpaid seller is one who has not received the whole of the price or has received the payment by bill of exchange or negotiable instrumentwhich is dishonored.

Rights of an unpaid seller:

Right of lien

Rights of stoppage in transit

Right of re-sale Right of withholding delivery Other rights:

1) Seller may sue the buyer for the price of the goods2) The seller may sue the buyer for the damages for the wrongfully neglecting or refusing to accept the goods.3) Recovery of interest, if there is a specific agreement to that effect

Contract involving rail or sea transit

Number of conditions are attached by the parties or by custom and practice of merchants

Free on Board Free on Rail Cost Insurance and Freight

Ex-Ship

FOB (Free On Board)

• Includes: o Price of goods o Port fees

• No requirement of tender of documents• Delivery is complete on shipment at the

specified location• Buyer’s risk• Notification to buyer

• Similar rules for Free on rail

Cost, Insurance and Freight• Includes:• Cost of shipment• Insurance cost • Fright cost

• Tender of documents are required• Buyer gets the possession of

goods at the end of delivery

Ex-ship

Seller to arrange upto port of destination

Inland destination also Buyer is not bound to pay until the

goods are ready for unloading from the ship and all freight charges paid

Goods travel at the seller’s risk, but he is not bound to insure them.