BLAW UNIT-2 | Degree 2nd semester bcom business law unit-2 full explanation in 1 video | O.U |

[00:00:00]Hello dear students, welcome back to our YouTube channel Learn with Sahira. In this video, I'm going to give you the complete and clear explanation of unit number two from the subject of business law which is for degree second semester BCOM students. Definitely watch the video till the very end and if you're new to our YouTube channel Learn with Sahara, subscribe it for more exam preparation videos. Students, one more important thing, I have already prepared damn sure important question and answers notes for all subjects and languages of degree second semester. These notes are easy, simple, clear to understand and 100% exam oriented. And the best part of these notes is just by giving a reading you will get perfect with the complete subject, a complete language because I have given in detailed explanations with very easy and simple terminology. If you want these notes to score orade in your exams, definitely message me on my Instagram. My Instagram ID link is available in this video description.

[00:00:49]Message me want notes along with your group and semester. I will be giving you the access to all the notes. But remember these are paid notes. Yes, there is a small payment for the notes, but believe me, you are going to see excellent results with these notes. Only the students who want the note should text me. And if you want to watch all explanation videos of this subject, definitely check out our playlist. The playlist link is available in this video description. Without getting late, let us get started. Guys, from unit number two, question number one is what do you mean by contract of sale? What are the essential elements of a valid sale?

[00:01:19]Guys, first let us try to understand what a contract of sale means. Guys, a contract of sale is an agreement between two people. Like one person is called the seller and the other person is called the buyer. In this agreement, the seller transfers or agrees to transfer the ownership of goods to the buyer. In return, the buyer will pay a price.

[00:01:42]Guys, this is called a contract of sale.

[00:01:45]It is governed by the sale of goods act 1930.

[00:01:50]Please remember this act. For example guys, suppose you buy a mobile phone from a shop. The shopkeeper gives you the mobile and uh you will pay some certain amount like 15,000 you are paying in return of mobile. So the ownership of the mobile is transferred from the shopkeeper to you. This is contract of sale. Okay, I hope you understood. Now let us try to understand essentials or elements of valid contract of sale guys. The first is two parties.

[00:02:19]A contract of sale must have two parties. One party is the seller and the other party is the buyer. A person cannot sell goods to himself. So both seller and buyer are necessary. The contract must be related to goods guys.

[00:02:32]Goods means movable items like books, clothes, furniture, laptops, mobiles, cars and all. A contract of sale is always made for goods. Transfer of ownership. The ownership of the goods should be transferred or agreed to be transferred from the seller to the buyer. Guys, once the ownership is transferred, the buyer becomes the legal owner of the goods. Price, there must be price for the goods. Guys, the buyer should pay money in return for the goods. If goods are exchanged only for other goods without money, it is called barter. Barter system, not a contract of sale. Then we have competent parties.

[00:03:08]Both the seller and the buyer should be legally capable of making a contract.

[00:03:11]Gen generally they should be 18 years or above. They should have sound mind and they should not be disqualified by law.

[00:03:18]Only competent persons can enter into a valid contract of sale. Free consent guys both parties should agree willingly. Nobody should force, threaten or cheat anyone. The agreement should be made with free consent with uh free consent of both the parties. Then only it will be a valid contract. Next lawful object guys. The purpose of the contract should be legal. The good should not be sold for any illegal activity. If the object is unlawful, the contract becomes invalid. Existing or future goods, guys, the goods may be existing goods which are already available or they can be future goods which will be produced or obtained later. Both types of goods can be included in a contract of sale. Okay, nothing like the good should be present.

[00:04:03]Then the last essential element is valid agreement guys. Finally, there should be a valid agreement between the buyer and the seller. It should satisfy all the legal requirements of a valid contract.

[00:04:13]Okay? Only then it will become a valid contract of sale. So yes guys, these are the essential elements of a valid sale.

[00:04:21]Understand that a contract of sale is an agreement in which the seller transfers or agrees to transfer the ownership of goods to the buyer for a price. Guys, here in this video I'm giving you short and brief explanation. Okay. But this is not how you are going to write in your examination. For examination to score full marks you need 100% exam oriented answers. Already in my notes I have given you damn sure important questions with their in detail and very easy simple explanation answers. Basically those notes are ready for quick exam preparation in very less time you can get perfect with the complete subject in order to rock in your exams in order to score orade in your exams. Just by giving a reading in my notes, you will score full marks in your examination guys. That easy my notes are. If you want those notes, you can message me on my Instagram. Instagram link is available in this video description. Now let us get into question number two guys. Question number two is differentiate between sale and agreement to sale. First let us understand what is sale. A sale means the ownership of goods is transferred immediately from the seller to the buyer. As soon as the sale takes place, the buyer will become the legal owner of the goods guys. Okay?

[00:05:37]For example, guys, you go to a mobile shop, you pay the money and take the mobile phone. The ownership is transferred immediately, right? So, this is called a sale. Now, let us understand agreement to sell guys. An agreement to sell means the ownership of the goods is not transferred immediately. It will be transferred on a future date or after certain conditions are fulfilled.

[00:05:58]Suppose you book a new car today. The company will say it will deliver the car after 1 month. So you have only made an agreement. The ownership will not be transferred uh immediately. It will be transferred when the car is delivered.

[00:06:12]Okay. So this is an agreement to sell.

[00:06:15]Let us understand the key differences.

[00:06:17]First is transfer of ownership. Guys in sale the ownership of goods is transferred immediately to the buyer.

[00:06:24]But in an agreement to sell the ownership is transferred later on a future date or after certain conditions are fulfilled. Nature guys a sale is completed uh contract because the ownership has already been transferred. But an agreement to sell is an executo or future contract because the ownership will be transferred later. Passing of risk in a sale. Once the ownership is transferred the risk also passes to the buyer. If the goods are damaged after the sale guys, the buyer has to bear the loss. But in an agreement to sell, the risk usually remains with the seller until the ownership is transferred. I hope you understood guys. Next is rights of buyer and seller. In sale, the buyer becomes the legal owner and gets all the rights over the goods by guys. But in an agreement to sell, the buyer gets only the right to receive the goods in the future. Effect of insolveny guys.

[00:07:19]Suppose the buyer or seller becomes insolvent in a sale once the ownership has already passed to the buyer. The goods generally belong to the buyer. But in agreement to sell since the ownership has not been transferred the seller usually continues to be the owner of the goods. Time of transfer guys in sale the transfer takes place immediately. In agreement to sell the transfer takes place um in the future or after certain conditions are fulfilled. So yes, these are the main differences between sale and agreement to sell. Remember in your examination you have to write the differences in table format. Okay, you have to draw a table then one side sale and other side agreement to sell. Then you have to mention the key differences.

[00:08:01]In my notes I have given you 100% exam oriented answers. Guys, differences have also been in table format uh for your uh examination. Basically my notes are 100% exam oriented. If you want them, you can message me on my Instagram. Okay.

[00:08:18]Question number three. Define unpaid seller. Explain the rights of an unpaid seller. Guys, an unpaid seller is a seller who has not received the full price of the goods from the buyer.

[00:08:30]Okay? Like a seller is also called unpaid seller if he receives a check or bill of exchange but it is dishonored and the payment is not made. Guys, in simple words, let me say you. If the seller does not get the money per the goods sold, he is called an unpaid seller. Let me explain you with an example guys. Suppose Ravi sells a laptop to Suresh for 40,000. Ravi is selling the laptop to Suresh for 40,000.

[00:09:00]Sur takes the laptop but does not pay the full amount. Then here Rabi becomes an unpaid seller. Guys, the sale of goods act 1930 gives certain rights to protect an unpaid seller. These rights are divided into two types. One is right against goods and the other one is rights against buyer. First let us try to understand rights against the goods.

[00:09:25]Right of lean guys, lean means the right to keep possession of the goods until the buyer pays the full price. If the seller still has the goods and the buyer has not paid, the seller can refuse to deliver them. For example guys, suppose a customer orders furniture but does not pay the amount. The seller can keep the furniture until the payment is made.

[00:09:45]Right of stoppage in transit. Sometimes the seller has already sent the goods but they are still on the way to the buyer. If the seller comes to know that the buyer has become insolvent or cannot pay the seller can stop the goods before they reach the buyer. So this is right of stopage in transit. When they are getting transported at that time he can just stop. Right of resale guys. If the buyer does not pay the price even after getting the notice, the seller has the right to sell the goods to any other person like he can resell that. This is rights against goods. Now let us try to understand right against buyer. Right to sue for price guys. If the buyer has received the goods but does not pay the price, the seller can file a case in a court to recover the money. Right to sue for damages. Guys, if the buyer breaks the contract and the seller suffers a loss, the seller can claim the compensation. Basically, he can get the amount from the buyer. Right to sue for interest, guys, if the payment is delayed, the seller can also claim interest on the unpaid amount according to the contract or the law. This is called right to sue for interest. For example guys, if the buyer delays payment for several months, the seller may ask the court to order the buyer to pay both the amount due to uh and due to interest like actual amount will also be paid. Interest amount will also be paid by the buyer. So yes, this is the explanation of question number three.

[00:11:08]For 100% exam oriented answers, you need to take my notes guys. In my notes, I have given you in detail explanations.

[00:11:16]Just by giving a reading once, you will get perfect with the complete subject.

[00:11:19]Okay? If you want them, message me on my Instagram. Here I'm just giving you short brief explanations. All right.

[00:11:25]Question number four is define conditions and warranties. Explain the various conditions and warranties. What is a condition guys? A condition uh is an important term of a contract of sale like the main part of a contract.

[00:11:39]Like if a seller does not fulfill a condition, the buyer has the right to reject the goods and cancel the contract. Okay.

[00:11:49]For example guys, suppose you order a red laptop but the seller delivers a black laptop. Since the seller did not fulfill the main condition, you can reject the laptop. This is the breach of condition. Then what is warranty, guys?

[00:12:03]Warranty is secondary or less important term of the contract. Basically, if a warranty is broken, the buyer cannot reject the goods. Okay. However, the buyer can claim compensation for the loss. Like suppose you buy a washing machine, it works properly but the seller promised to provide free installation and fails to do that. You cannot reject the washing machine but you can ask for compensation. This is breach of warranty. Let us try to understand types of conditions and types of warranties. First types of condition guys. Condition as to title the seller should have the legal right to sell the goods. Okay. If the seller is not the owner the buyer can reject the goods. As to description guys, the goods should match the description given by the seller. If the goods are different, the buyer can reject them. Like you order a 64GB mobile phone, but the seller delivers a 32GB mobile phone. Since the goods do not match the description, you can reject them. Condition as to sample.

[00:12:58]Sometimes the buyer purchases goods after seeing a sample guys. In such cases, the goods supplied should be exactly like the sample. A shopkeeper shows a sample of cotton cloth. Like if he delivered a poor quality the buyer can reject it. It is to fitness purpose guys. If the buyer tells the seller the purpose for buying the goods the seller should provide goods that are suitable for that purpose. If not reject condition as to merchantable quality guys the good should be of qu good quality and fit for normal use. They should not have major defects. Okay. So yes uh they should have good quality otherwise you can reject it. These are types of conditions. Now, types of warranties guys, warranty of quiet possession. The buyer should be able to use the goods peacefully without anyone claiming ownership. Okay? After buying a car guys, no one should disturb you by saying the car belongs to them. Okay?

[00:13:54]Like the ownership already transferred.

[00:13:57]That is quiet position. Then against encumbrances guys, the good should be free from any hidden charges or legal claims. Okay? Like if a bike is already pledged to a bank and the buyer is not informed the seller has broken this warranty right then quality or fitness sometimes the seller gives an extra promise about the quality or performance of the goods guys if that promise is not fulfilled the buyer can claim the compensation trade usage or custom sometimes warranties are accepted because of the usual practice in a particular trade or business guys like in some businesses it is customary for the seller to replace defective goods within in a certain period. Such guarantees are known as warranties by trade usage or customs. So yes guys, yes guys, these are different conditions and warranties. For in detail explanation answers, you need to take my notes. In my notes, I have given in detail exam oriented answers. Okay, last question is define consumer. What are the objectives and rights of a consumer under the consumer protection act 1996? Guys, who is consumer? A consumer is a person who buys the goods or hires services by paying money for personal use. Guys, the goods or services should not be purchased for resale or business purposes. Okay?

[00:15:14]For example, if you buy a mobile phone for your own use, you are consumer. If you buy internet service for your own home, own home, you are consumer. Okay?

[00:15:24]So the consumer protection act 1996 was made to protect consumers from unfair rate practices and to safeguard their rights. Let us understand those objectives. Okay. First protects consumers from exploitation. Guys, the main objective is to protect consumers from cheating, fraud and unfair business practices. Like if a shopkeeper sells a fake product as an original one, the consumer is protected by this act. Okay?

[00:15:50]like the shopkeeper will be uh sued.

[00:15:54]Then provide simple and speedy justice.

[00:15:56]The act provides an easy and quick way for consumers to file complaints and get the justice. Guys, consumers do not have to face lengthy legal procedures. Speedy justice will be given to the consumers to safeguard consumer interest. Guys, the act protects the interest of consumers by ensuring that they receive safe and good quality goods and services. It promotes consumer awareness. Guys, the act encourages people to know their rights and make informed decisions while buying goods and services. Provides compensation. If a consumer suffers a loss because of defective goods or poor services, the act allows the consumer to claim the compensation. These are the objectives.

[00:16:33]Now, let us try to understand the rights. Right to safety. Every consumer has the right to be protected against goods and services that may be harmful for health or that may be harmful for life. Like for example guys, electrical electrical appliances should be safe to use. It is right to safety. Right to information guys, a consumer has the right to know the complete information about a product. This includes its price, quality, quantity, expiry date, ingredients, instructions, everything should be informed to the consumer because he's paying and he's buying, right? And the right to choose. A consumer has the freedom to choose from different brands and products. Guys, no seller should force a consumer to buy a particular product. It is completely on their end right to be heard. If a consumer has a complaint or he or she has the right to present uh something then definitely they need to go to appropriate consumer forum and they should be heard fairly. Seek to red wrestle guys. Uh if a consumer suffers because of defective goods or poor services, he or she has the right to seek compensation or any other suitable remedy. Okay. Right to consumer education. Every consumer has the right to learn about consumer rights and responsibilities. Consumer education helps the people to protect themsel from unpaid trade practices. Okay. So yes, these are the objectives as well as rights of consumers. I hope you understood this was the complete explanation of unit number two. How was the explanation? Do let me know in the comment section. If you're having any doubts, do let me know in the comment section. For 100% exam oriented notes, you message me on my Instagram. Join our telegram channel for important update.

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