Monday, 9 November 2015

Whether there can be transaction of sale of goods between agent and principal?

All the above referred terms and conditions show nothing but authority of respondent no. 2 to sell the goods in it's own right and pass on the title to the goods in it's own right to the specified buyer. The essence of contract of sale under Section 4 of The Sale of Goods Act, 1930 lies in transfer of the property in goods by the seller to a buyer for a price. Whenever the seller transfers or agrees to transfer the property in goods to a buyer for a price, the contract is of sale. As against this, in a contract under which a relationship of agent and principal is created, an agentwp4383.08.odt cannot deal with the goods as if they are his own goods and cannot pass on the title in his own right to the buyer for a price. These attributes of agency are absent in the said agreements which rather fulfill the characteristics of contract of sale and, therefore, the argument that respondent no. 2 acted only as an agent for importing edible oil on behalf of Government and that there was no sale effected between respondents 2 and 3, cannot be accepted.
Bombay High Court
Mumbai Agricultural Produce ... vs The Hon\'Ble Minister For ... on 20 July, 2015
Citation;AIR 2015 Bombay 234
CORAM : Naresh H. Patil and S.B. Shukre, JJ.
Read full judgment here;click here
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