Business
- Doing Business & Steps
- Investment idea
- Business Letter
- Knowledge Bank
- Business Risks
- Create a Business Plan THE SALES OF
GOODS
Sales of personal property
In general, a sale is a transaction in which a person called the “seller“
or “ vendor “ transfers the ownership of a thing or thins to a person
called the “ buyer “ or “ vendee “ for a consideration called the “ price
“.
In fact, sales law applies to sale of goods: items of tangible personal
property, such as books, stereos, and structural steel plate, television
sets, machine tools, etc.
So it should be noted that the term “ title “ is frequently used as
synonymous with “ Ownerships “. Hence the term “ property “ in the legal
sense includes: the right too exclusive possession, the right to use, the
right to dispose have and the like.
Hence under the provisions of the Sale of Goods Act, a sale is technically
a transfer of the “ property “ in things for a price. Goods
Essentially, two requirements must be met before a particular item of
property is classified as goods.
(1) It must be tangible. In other words it must have a physical existence.
Thus
intangible property such as a patent, copyright, trade mark would not came
within the scope of
the law of sale of goods.
(2) It must be moveable. This requirement clearly excludes the real
estate, which is
tangible but not moveable. Thus the sale of immoveable property such as
land, building or whatever property being permanently attached to the
earth will, good under the Transfer of Property Act.
Therefore, applying these two requirements it can easily be envisaged a
wide variety, of products that are classified as goods, from airplanes to
toothpaste.
In fact, the terms “ goods “ covers every kind of moveable property (other
than actionable claims and money) and includes stock and shares, growing
crops, grass and things attached to or forming part of the land which are
agreed to be severed before sale or under the contract of sale.
Sale
A sale is a transfer of property in goods which exactly means passing of
the little from the seller to the buyer for the price.
Therefore if does not apply to leases such as the lease of an automobile
on to other types of bailment’s such as a storage of fur5niture in a
warehouse because temporary possession of the goods is a contract I hereby
the seller:
(1) transfers or
(2) agrees to transfer to property in goods to the buyer for the price.
It is also to be noted that there may be a contract of sale between one
part owner and
another. Where under a contract of sale. Property in goods is transferred
from the seller to the buyer, the contract is called a sale. Agreement
It is already stated that a contract is a special sort of agreement, which
is enforceable by law. Hence it is understood that not all agreements are
contracts.
As to the first element therefore there must be an agreement, since nobody
can agree with him there must be at least two parties to be agreement. One
of them will make an offer, and the other will indicate its acceptance.
When offer and acceptance correspond in every respect, there is agreement
between the parties.
In the eye of law, whenever the terms “ agreement “ is used, it is to be
noted that there are three kinds of agreement:
1. Oral agreement
2. Express or written agreement
3. Implied agreement which is to be construed by the conduct of the
parties. The effect
Of the provision laid down under section 2 (a) to (f) of the Contract Act
is that an agreement is a promise or a set of reciprocal promises that a
promises is formed by the acceptance of a proposal, and that there must be
a promiser who makes the proposal and a promise who accepts it . In the
case of reciprocal promises which he makes and a promise as to what he
received he is both proposer and acceptor, promising to become liable and
accepting the other’s liability.
Agreement which is not enforceable by law is said to be void. It should
well be noted that an agreement enforceable by law only can be regarded as
a contract. Different between a “ Sale ” and an “ Agreement to sell ”
There are Five points of differences:
(1) A “Sale “ is an Executed Contract. An “Agreement to sell “ is an
Executor Contract.
(2) A “ Sale “ creates a right “ In ram “ , that is gives a right to the
buyer to enjoy the goods as against the whole enjoy the goods as against
the whole world. An “ Agreement to sell “ creates a right “ in personal “
that is , it gives a personal right either to the buyer or seller against
the other for any default in fulfilling his part of the agreement.
(3) In a “ Sale “ if the buyer fails to pay the price for the goods, the
seller can sue him for the price.
In an “Agreement to sell “ the seller can only sue for UN, liquidated
damages for the breach of contract.
(4) In a “ Sale “ if the seller breaches the term of the contract, the
buyer can sue of r damages and also can claim delivery of the goods.
In the case of an “ Agreement to sell “, if the seller commits a breach,
the buyer has only a personal remedy for damages.
(5) In a “Sale “, since the ownership passes from the seller to the buyer,
the buyer bears the risk of loss or deterioration.
But in the case of an “Agreement to sell “, the risk of loss remains with
the seller. Doing Business & Steps
Business Model
A business model is the method of doing business by which a company can
sustain itself -- that is, generate revenue. The business model spells-out
how a company makes money by specifying where it is positioned in the
value chain.
Some models are quite simple. A company produces a good or service and
sells it to customers. If all goes well, the revenues from sales exceed
the cost of operation and the company realizes a profit.
Business models have been defined and categorized in many different ways.
The basic categories of business models discussed in the table below
include:
The models are implemented in a variety of ways, as
described below with examples. Moreover, a firm may combine several
different models as part of its overall Internet business strategy.
Here is a sample model.
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Type of Model: |
Description: |
Brokerage
Model
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Brokers
are market-makers: they bring buyers and sellers together and
facilitate transactions. Brokers play a frequent role in
business-to-business (B2B), business-to-consumer (B2C), or
consumer-to-consumer (C2C) markets. Usually a broker charges a fee or
commission for each transaction it enables. The formula for fees can
vary. Brokerage models include:
Marketplace Exchange
-- offers a full range of services covering the transaction process,
from market assessment to negotiation and fulfillment. Exchanges
operate independently or are backed by an industry consortium. [Orbitz,
ChemConnect]
Buy/Sell Fulfillment
-- takes customer orders to buy or sell a product or service,
including terms like price and delivery. [CarsDirect,
Respond.com]
Demand Collection System
-- the patented "name-your-price" model pioneered by Priceline.com.
Prospective buyer makes a final (binding) bid for a specified good or
service, and the broker arranges fulfillment. [Priceline.com]
Auction Broker
-- conducts auctions for sellers (individuals or merchants). Broker
charges the seller a listing fee and commission scaled with the value
of the transaction. Auctions vary widely in terms of the offering and
bidding rules. [eBay]
Transaction Broker
-- provides a third-party payment mechanism for buyers and sellers to
settle a transaction. [PayPal,
Escrow.com]
Distributor
-- is a catalog operation that connects a large number of product
manufacturers with volume and retail buyers. Broker facilitates
business transactions between franchised distributors and their
trading partners.
Search Agent
-- a software agent or "robot" used to search-out the price and
availability for a good or service specified by the buyer, or to
locate hard to find information. [MySimon]
Virtual Marketplace
-- or virtual mall, a hosting service for online merchants that
charges setup, monthly listing, and/or transaction fees. May also
provide automated transaction and relationship marketing services. [zShops
and Merchant Services at
Amazon.com]
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