Category: Commerce Notes PPT

Mercantile Law is a repository of all the Laws included in a company to handle or look after its commercial activities. It is a generalized term for the entire legal body. All the other acts like the company act, limitations act, Indian contract act, etc. are subsidiaries of the Mercantile Law. And the acts are known as Mercantile Law acts.

It deals with all the commercial transactions of the trader, whether it is an individual or an organization or maybe a joint venture. The commercial transactions include the agreements between both parties, operational activities, the delegation of work, financial transactions, memorandum of associations, etc. So let us understand the meaning of Mercantile Law and its sources, scope.

Mercantile law is a combination of various laws and principles of individuals having legal knowledge to resolve various issues in the company. But in 1872, all these laws are joined and termed as mercantile law and from then to regulate various issues of your company several acts are formed respectively such as the Indian contract act, the company act, the limitations act, etc. from the definition of mercantile law it is clear that it has a very wide scope.

Mercantile Law, also known as Commercial Law, governs the commercial activities of the economy. It is a broad term that encompasses all of the Laws in India that govern commercial transactions. Such a transaction necessitates a valid agreement between the contract’s parties. It can be explicitly stated or implicitly stated.

It is concerned with traders’ rights and obligations arising from commercial transactions. The trader can be an individual, a partnership, or a corporation. The Mercantile Law of India encompasses all Indian Acts that govern trade or commerce. For example, the Indian Contract Act of 1872, the Sale of Goods Act of 1930, the Companies Act of 2013, and so on.

 

Principal Sources of Mercantile Law

1. Law Merchant: The main source of Mercantile Law is the Law merchant. It refers to the customs and rules that govern traders’ and businessmen’s dealings and transactions with one another.

2. Statute Law: Legislation creates Law, which is referred to as statute Law. A statute is a written formal act of the legislature. It has also evolved into a significant source of Mercantile Law.

3. The Principle of Equity: The principle of equity refers to a set of rules that are not based on customs or statutory Law. As a result, equity rules were formed based on the basis of conscience dictates decided in chancery courts.

4. Common Law: Common Law is a set of rules defined by customs, judicial decisions, and old scholarly works on the subject. It is an unwritten English Law that applies to everyone in the country. In this context, common law refers to legal principles developed by judges through case decisions.

 

Principal Sources of Mercantile Law

The Indian Mercantile Law has various sources similar to that of English Mercantile Law. Some of the principal sources of Mercantile Law are-

1. English Mercantile Law

English Mercantile Law is an unwritten, generalized Law of England to deal with customs and judicial activities which has equity Law, merchant Law, common law, and statute Law as its sources.

As India was under the control of the British for a longer time, the Indian Mercantile Law is derived from the English Mercantile Law meaning. All the concepts, formats can be taken from it English Law. Even in recent times also if any issues are unsolved, our judicial heads will take help from the English Mercantile Law. 

2. Enacted Acts by Indian Legislature

Some of the acts involved in the Mercantile Law are enacted by the Indian legislature. These acts are listed below-

• The Carriers Act(1865)

• Indian Contract Act(1872), 

• Negotiable Instruments Act(1881)

• The Presidency Town Insolvency Acts(1909) and 

• Provincial Insolvency Act (1920)

• Sale of Goods Act(1930),

•  Indian Partnership Act(1932)

•  The Insurance Act(1938)

• The Arbitration and Conciliation Act(1996)

3. Judicial Decisions 

Judicial decision refers to the decisions made by individuals having judicial powers. It means that judges available in the courts will form certain rules and ask their subordinates to follow. And it is fixed and constant for all the cases. The Indian government has given authority in such a way that if the high court makes a judgment, it should be obeyed to all its subsidiary courts whether they are favorable or against.

Similarly, if the judgment has been given by the Supreme Court, it should be followed by all the courts of India except itself because it is the highest state of the Indian judicial body. The judgment will be common and will be in a written format which sets as a prerequisite for various cases in the future. The limitation is as the case may vary from one to another, the organization may vary from one to another; the judgment will be constant.

4. Customs and Trade Usage

It is a significant source of Mercantile Law. The Indian legal bodies give high priority to customs and trade. The codified Law also supports it. It provided all the powers required for the customs department, and section 1 of the Indian contract act is the best example to understand the importance of customs and trade usage as a major source of Mercantile Law.

“Nothing herein contained shall affect any usage or ……….inconsistent with the Act.” it is completely bound by the customs, and it is not against the public policy. So the legal body considered it and registered it as a legal obligation.

Similarly, we can understand all the principal sources of Mercantile Law only with the Mercantile Law examples.

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Hence, by observing the meaning of Mercantile, we came to know easily that the scope of Mercantile is very wide, and each source of Mercantile Law plays a predominant role. As it deals with all commercial activities of your company or an individual, it is good to have sound knowledge of all other acts which are included in the Mercantile Law.

Modern management and decision-making are integral to each other in nature. Managers in today’s age and time are always pressed for time hence it is imperative for them to use their time wisely in deciding whether a decision making process can be structured with a routine applied to it (programmed decision) or decisions that require thought and focus as they are novel (nonprogrammed decisions). Every manager is constantly taking such decisions all through their working hours, either consciously or subconsciously. 

This article will go through definitions of programmed and nonprogrammed decision making process along with examples of programmed and unprogrammed decisions. You will also be able to find out the difference between programmed and non programmed decisions.

 

Programmed and Non-Programmed Decisions

In management, there are mainly two types of decision making programmed and nonprogrammed.

Programmed decisions can be taken when something is repeated over time, and a set of rules can be devised to guide the process of such decisions. Programmed decisions can be simple or fairly complex, but the main thing about such decisions is that the criteria for making such decisions are either completely known or can be estimated with a fair degree of accuracy. Few examples of programmed decision are listed below:

• The decision to buy raw materials for producing goods is based on the amount to be produced, items in stock, time of delivery, etc. 

• The weekly work schedule of part-time workers in a retail store can be worked out based on how busy the store is in that time period, how many regular employees are available or applied for vacations, etc. Though establishing a schedule is a complex decision, yet it falls under programmed decision since a structure can be applied to the process.

The main technique that managers use for making programmed decisions is developing a mental shortcut or heuristics to help them reach a decision. 

On the contrary, a non programmed decision making process lacks structure and routine. This is the primary difference between programmed decision and non programmed decision. A nonprogrammed decision definition is a decision that does not follow a set procedure, and the criteria for such decisions is not well-defined. The main characteristics of an unprogrammed decision are:

• Information on which decision is based is generally incomplete or ambiguous.

• The decision-maker needs to use his/her creative thinking and judgment while dealing with a non programmed decision making process.

• Non-programmed decision making is also referred to as high-involvement decisions or nonroutine decisions since they need a high level of involvement on the part of the decision-maker.

The table below depicts the key differences between a Programmed and a non-programmed decision:

Difference Between Programmed Decision and Non Programmed Decision

Example of Non Programmed Decision In Business

In business, non programmed decisions are taken mostly by high-level management where crucial decisions are taken that involve a lot of unknowns. Few examples of an unprogrammed decision are:

• Whether a company must acquire another organization or not.

• Whether a new technology must be adopted or not.

• In which global market, the business has the highest potential.

Modern Techniques for Non Programmed Decisions

One needs subjective judgment for badly-defined problems that are non-recurring, novel, and unstructured. Though a standard procedure can not be applied when it comes to non programmed decision making, there are a few techniques that managers take for making non programmed decisions as described below:

• Brainstorming Technique 

Alex Faickney Osborn (also called the “father of brainstorm”) developed this technique of non-programmed decisions. He was an advertising executive in the United States. This method aims to improve problem-solving by devising new and creative solutions. A typical brainstorming session has 5 to 10 people in a group where the leader of the group presents the team with the problem in hand. Members are supposed to come out with all possible ideas, and each idea is then discussed and analyzed. The best idea, as per the consensus, is then selected after the session is over.

In a Delphi technique, a similar process as brainstorming is performed except for the fact that the members of the group do not meet each other face to face. Group members could be spread across the city, state, or even belong to different countries. Group members use modern tools like video conferencing to interact with each other. People can even use a questionnaire, which is a list of questions about the problem, to gather information from the members of the group. Delphi technique is a very effective method for non programmed decision making since in this, members do not see each other hence they are not affected or influenced by views and opinions of each other about the problem. This technique is also quick since the group uses modern tools and technologies to interact with each other.

• Nominal Group Technique 

In this technique, each group member thinks and comes up with ideas and solutions in isolation. There is no interaction between the group members in the initial stages of the decision making process. Group members start interacting once all of them have come up with an idea.

This was started in the 1960s in Japan where a small group of employees from the same department would voluntarily meet regularly to identify, analyze, and solve various types of problems related to their work.

This technique applies various aspects like the rule of thumb, experience, common sense, etc. An example of such an approach is enabling payments in installments for a product as the company feels that people would be more inclined to buy the product if they do not have to pay a lump sum amount but can break it into installments.

The subject of Business Economics is a wide study. The study is mainly concerned with the economics of the business. Business Economics particularly bridges down the gap of theoretical knowledge of economics and practical application of the same in the conduct of business. 

In this context, we are going to discuss the fundamental aspects of business economics, the division of business economics, and the nature and scope of the same are to be studied. 

Definition of Business Economics

In simple terms, we can say that business economics is a concentration of applied economics that deals with the finance, organization, market, and environment-related factors which are primarily faced by the companies or business organizations.

Business Economics studies the key elements of scarcity thus dealing with its concept, the product factors, distribution, and consumption of these resources.  

Division of Business Economics – Macroeconomics and Microeconomics

The prevalent theories which we study on economics seem to be simple, while the actual application is a much more complex task. The managers who are new to the field face the maximum trouble in correlating their recently learned theories and their application in the real world. For such scenarios, the manager needs to know business economics. Business economics is an amalgamation of logical and analytical tools that attempts to solve the differences between the theories and the practice. It is important to study the details of the nature and scope of business economics. 

However, for a better understanding of the concepts, it is important to understand the two major parts of economics- microeconomics and macroeconomics.

Microeconomics

Microeconomics is defined as the study of the decision-making process of individual units with respect to the proper allocation of their limited resources. These individual units are also called firms or consumers. The focus is directed to individual units or a small number of units instead of a combination of all the units. It provides a restricted picture of the situation and excludes the broader economic environment. The study of microeconomics includes the following topics.

Macroeconomics

Macroeconomics is defined as the study of the economical behaviour of larger aggregates like total consumption, overall output, and it also considers the shift in the position of these aggregates. Therefore, it encompasses all the decisions made by different consumers and their effect on the overall economy. The study of macroeconomics includes the following topics.

• General price and rates of interest,

• National output,

• National income,

• The external value of the national currency,

• Balance of payments,

• Balance of trade,

• Rate of economic growth,

• Level of employment.

Nature of Business Economics

To explain the nature and scope of business economics, it is important to look at it from the following angles.

Science can be defined as a systematic approach to generating a relationship between cause and effect. Statistics mathematics and econometrics are all considered to be decision sciences. To describe the nature of business economics, it can be considered as an integration of decision sciences with the theories of economics, so that the businesses can strategize their plans to achieve their goals. It follows a scientific approach and also checks the validity of all the results thus obtained.

Looking into the basic differences between microeconomics and macroeconomics, a businessman will certainly first focus on the objectives and the achievements of his own organization. He should target his profit-making abilities and ensure the long-term survival of his company in the first place. Business economics focusses more on the analysis and decision-making abilities of the individual businesses and therefore utilizes the techniques related to the concept of microeconomics.

Although business economics is largely based on the microeconomy, the nature, and scope of business economics notes certain concepts of macroeconomics as well. For example, although any business will mainly focus on its survival in the market and on its profits, it cannot function in isolation. External factors like tax policies, the country’s economy, employment rate, income, etc., are considered within the purview of macroeconomics.

Therefore, although a business is mostly considered as a segment of microeconomics, the nature and scope of business economics also contain elements of macroeconomics.

The concept of art can also be used to discuss the nature and scope of business economics. It also involves the practical application of regulations and rules to move forward towards the goals of the company.

Business economics considers the resource allocation theory prevalent in the private enterprise economy. Therefore the nature and scope of business economics notes also include market and private enterprise theories.

In comparison to the theoretical nature of the microeconomy, business economics has a pragmatic approach. It is more related to finding efficient solutions to the problems faced by companies in the real world.

Business economics has an interdisciplinary approach by involving disciplines from statistics, mathematics, marketing, accounting, etc.

On a broader basis, economic theory can be described in two ways- normative and positive. Normative science includes judgments that have values. It analyses the circumstance and provides suggestions on the course of action. A positive approach establishes a scientific approach to define the cause-effect relationship without the involvement of any value judgment. Business economics provides more focus on the normative approach but considers both approaches.

Scope of Business Economics 

The scope of business economics can be put under various heads:

1. Microeconomics which deals with Operational Issues

2. Macroeconomics applied to environmental issues. 

This was an exhaustive study of the preview of Business Economics. The study is segregated into two divisions which we have thus studied. From the academic point of view, theoretical understanding is required, while if you want to opt for business then the practical application of the same study is to be done. 

For a business to continue working, there must be some distinct objectives that the owners and the managers of the business will work thoroughly to make it happen and working for that particular objective is what is meant in simple terms as the business objective.  

 

There are various kinds of business objectives, the business objective is defined and being identified in different classes. In this section we will continue our discussion about ‘Business Objective’ with ‘Economic Objective’ and ‘Social Objective’ among other objectives of the business.

  

Introduction

Business objectives are very specific and measurable in net results. Companies maintain their objectives as the organizational goals as their organization expands. Entrepreneurs and business leaders must track the performance with the objectives to check whether their business is moving in the right direction. 

 

Business objectives act as the compass for the company, directing how the organization should allocate its resources, make their weaknesses overcome with their strengths, and tap opportunities that might be available. Most of the time, objectives remain the same until any external or internal circumstances change.

 

While business goals describe the company’s end purpose, objectives direct the directions to reach the goal.

 

Role of Business Unit

Though it is believed that a business has a single objective, that is, to make profit, that is not the only objective of business. With pursuing the objective of earning profit, business units do keep the interest of their owners in view. However, any business unit will not ignore the interests of its employees, customers, the community, as well as the interests of society as a whole. 

 

For instance, no business can prosper in the long run unless fair wages are paid to the employees and customer satisfaction is given due importance. 

 

Also, a business unit can only prosper if it enjoys the support and earns goodwill of people in general. Business objectives also contribute to national goals and aspirations as well as towards international well-being. Thus, the objectives of business may be divergent.

 

Economic Objectives of Business

Economic objectives refer to the objective of earning the profit and also other objectives which are necessary to be pursued to achieve the profit objective. This includes – creation of the customers, regular innovations and best possible use of the available resources. Profit is the lifeblood of business, without this no business can survive in a competitive market. 

 

In fact, profit making is the primary objective for which a business unit is brought into existence. Profits must be earned to ensure that the business survives, its growth and expansion over time. Profits help businessmen not only to earn their living but also to expand their business activities by investing into expansion of business sectors. 

 

Other Supporting Objectives are

• Creation of Customers: The supply of any business is directly proportional to its demands; and demands are raised and met efficiently through extending the market share of the business. More customers mean higher demands, which upon being met by the business organization results in higher profits- meeting the economic objective of the business.

In the long run, a business’s profit-making capacity tends to completely depend on the number of customers it caters to. By providing good quality products or service, a business can expand its market share or create loyal customers, that in turn will ensure stability in the future. 

• Regular Innovations: The days have gone when there were only a countable number of business organizations around the world. In this century there are multitudinous businesses working day and night in almost every part of the world. Hence, it is extremely important to not only survive but to keep up in this world of dynamic competition. To do so a business needs to regularly invest in new technologies and innovations. It is only by providing unique products and services through innovative ideas that a business can run in the long run. 

• Best Possible Use of Resources: A business only has a limited number of resources and it is on the business decision to effectively utilize these resources- like raw materials, labor, capital- in the correct departments. Large corporations survive because they utilize their resources efficiently and invest huge amounts of capital in new innovations.

• Productivity Increase: Although this is the hindmost objective of any business but that doesn’t mean it’s not equally important. Productivity of a business depends on the overall output produced by the different activities that are carried out in any business organization. It shows how effectively and efficiently a business is working. More productivity will guarantee a business’s development in the long run. This goal can be achieved by utilizing labor, raw materials and capital efficiently, and minimizing wastage of the resources available.

 

Social Objectives of Business

• This objective is desired to be achieved for societal benefit. As business operates in a society and by utilizing its scarce resources the business functions, the society thus expects something in return for its contribution. No activity of the business should be aimed at giving any trouble to the society. If business activities lead to socially harmful effects, there is bound to be a public reaction against the business sooner or later, and thus social objectives should be objected to compensate for the same.  

• Social objectives of business include production and supply of quality and standard goods and services, adoption of fair-trade practices and contribution to the general welfare of society and provision of welfare amenities.

Production and Supply of Quality Goods and Services at Reasonable Prices: 

• A business exists because of its customer; and the customers together fabricate a society. Hence, a business exists because of the society it serves through the production and supply of goods and services. These products and services should not only be of good quality but also have reasonable prices so that the customers are in the capacity to buy them. Products or services that have irrationally high prices automatically divert the customers to go for its competitor business. An ethical business does not hoard its products or engage in shrewd marketing strategies to attract customers. 

• Adoption of fair-trade practices

 

Contribution to the General Welfare of the Society: 

• Unemployment is a considerable issue that society faces in different parts of the world. Since the world runs through business organizations, it comes under the social responsibility of these businesses to generate employment opportunities for individuals of the society it serves. Through this it contributes to the general welfare of the society.

 

Fair Wages to Its Employees: 

• Trade unions can hinder the daily workings of any business organizations; and they are most probable to be formed in businesses that do not treat their employees ethically. A business does not only run-on raw materials, machines and capital; it comprises the diverse employees that make these machines work for the development and eventual success of any business. These employees are the most essential assets of a business, but before that they are human beings that live in the same society in which the business runs.

• Hence, it is important to provide these employees fair wages for their hard work. Employees benefit programmes are also an important part for a business to meet its social objective. Such benefits will give the employees a sense of association with the business and motivate them to work proficiently towards its expansion.

 

Performing Community Service- 

• The business is established and developed in a society. It works because of the society; so, it is the responsibility of any business organization to give back to the society in whatever considerable amount it can. It can do so by building public toilets, dispensaries, and transportation. It can also contribute to the growth of society by encouraging education and literacy through building foundations like schools, colleges, and libraries.

• If a business is not in the financial capacity to build any institutions or infrastructure, it still has a way to give back to the society by donating to NGOs which work in diverse fields of services.

Organisation of data includes the gathering of essential information and concluding its conclusion through statistics. Through reading the explanation below, students can gather relevant information about what is organisation of data and ways of determining it.

Terms Determining Organisation of Data in Statistics

This method uses the classification of data which is an act of arranging similar things into groups or classes. This process eases out the collection of raw data and variables for calculation.

What is the Objective of the Classification of Data?

The objects are classified into five major types that are geographical, chronological, alphabetical,   quantitative, and qualitative. This is done for the following reasons –

• To expand the idea of distinction.

• To abridge the complex data.

• To segregate data according to their characteristics and nature.

• For easy analysis and calculation.

An organisation of data is characterized correctly when it has the following properties –

• Homogeneity 

• Clarity

• Diversification

• Suitability

• Clarity

What is Raw Data in the Organisation of Data Class 11 Notes?

Raw data in the organisation of data is the unorganized information which is arranged to find out a comparison or conclusion.  It is calculated by an investigator who uses forms of series which are those data sets in sequence. One can organize a piece of information in the way of a numerical series. This base of the preparation of raw data can differ according to reason.

What is Variable in the Organisation of Data in Statistics?

Variables are usually data that can differ depending on time and measurement. It is an occurrence that can change over time. Ideally, a variable can be categorized into two types –

(a) Discrete 

It is a variable whose value changes in the complete number or keeps rising with every jump. This variable signifies an amount that will never be infractions but whole numbers. 

(b) Continuous 

This variable is in fractional value, or its worth does not change with a jump. A good example will be the weight of students, etc.

What is the Basic Difference Between Bivariate and Univariate Frequency?

A frequency distribution is an inclusive way of classifying raw data and quantitative variables for statistics. It is done to estimate the different values of variables in the organisation of data distributed into class frequencies. There are two essential forms of frequencies – Univariate and Bivariate.

The organisation of data is a vast chapter that deals with crucial concepts for an in-depth understanding of statistics. A student can read the notes offered by , which gives a discrete idea about the related topics. Moreover, students can find budget-friendly live classes and solutions based on this topic from the site and app. Check today!

You must have come across the word ‘Contract’, might have heard it from a movie, a series, or from your parents or teachers. So, what do I understand by the word Contract? Think of the answer by yourself before scrolling any further.

The Contract is the written agreement between two or more parties the breach of which may have consequences in the forms of penalties decided into a Contractual document. It is a legal agreement and has the effect of Law for its application. So while selling a product to the consumer there is either some form of written or verbal Contractual agreement. Business Law deals in detail with the meaning, scope, and uses of Contractual Law. In this particular article, we shall learn about the following concept of the Contract of Sales. 

Table of Content

• Introduction 

• What is the Performance of a Contract of Sale?

• Definition of Delivery

• Duty of the Buyer and the Seller 

• Payment and Delivery

• Rules Regarding the Delivery of Goods

• Solved examples

• Key learnings from the topic

• Frequently asked questions 

What is the Performance of Contract of Sale?

The Sale of Goods Act 1930 states under Sec 31 that, “It is the duty of the seller to deliver the goods and the buyer to accept and pay for them, in accordance with the terms of the Contract of Sale.”

 

The performance of a Contract of Sale defines a simple transaction where the seller delivers the goods in exchange for a payment made by the buyer. Sections 31 to 40 of the Sale of Goods Act, 1930 state the rules and regulations that govern the Sale of goods and their delivery.

 

Let’s define delivery, buyer, seller and their duties.

 

Definition of Delivery

Under Section 2 (2) of the Sale of Goods Act, 1930, the delivery meaning has been stated as, 

 

“voluntary transfer of possession of goods from one person to another.” The transfer of goods from one person to another will be considered a delivery under a Sale of goods act only when:

• The transfer of goods is voluntary

• The transfer is not done using theft, fraud or force

• Mere possession of good does not constitute a valid delivery of goods

 

Duty of the Buyer and the Seller 

The seller must deliver the goods as per the Contract of Sale. The buyer must accept the goods and make a payment as per the Contract of Sale. 

 

Payment and Delivery are Concurrent 

The payment and delivery of goods are concurrent conditions. The seller of the goods should be ready to make the delivery of goods in exchange for a payment and the buyer must be ready to make the payment for the delivery of goods unless agreed otherwise.

 

Rules Regarding the Delivery of Goods

Delivery 

The delivery of goods can be done by putting the goods in the possession of the buyer or any other person authorized by the buyer to hold the goods on his behalf.

 

Partial Delivery of Goods

Partial delivery of goods made as progress towards full delivery has the same effect as full delivery, to pass the property in the goods. Partial delivery done with the intent of severing it from the whole does not constitute the delivery of the remaining goods.

 

Buyer Must Apply for Delivery 

The buyer of the goods must apply to the seller for the delivery of goods unless otherwise stated in the terms, where terms of delivery meaning are the conditions mentioned in the Contract.

 

Place of Delivery

Both the buyer and the seller must agree to terms of delivery, express or implied,  at the time of drawing up the Contract of Sale. If no such terms and conditions have been specified in the Contract:

• Delivery of goods to be sold is done at the place where they are at the time of Sale

• Delivery of goods to be sold is made at the place at which they are at the time of the agreement to sell. If the goods are not in existence at that time, they are delivered to the place of manufacture.

 

Time of Delivery

If the time of delivery of goods has not been specified in the Contract, it must be made within a reasonable time. 

 

Goods in Possession of Third Party 

If the goods have a third party at the time of Sale, then the third party must acknowledge to the buyer that the goods are being held on his behalf.

 

Time for Tender of Delivery 

The demand for delivery must be made at a reasonable hour unless otherwise specified in the Contract. 

 

Delivery Expenses 

The expenses incurred for putting the goods in a deliverable state must be borne by the seller unless otherwise stated in the Contract.

 

Delivery of Wrong Quantity of Good

Goods for delivery means the goods sent by the seller at the time of delivery. If the seller sends a lesser or a larger quantity of the goods for delivery than what is specified in the Contract, the buyer has a right to reject the delivery of goods. If the buyer delivers a mix of goods where some parts are not as per the Contract, the buyer has the right to reject the goods that are not by the Contract.

 

Solved Example

1. John Agrees to Sell 100 kgs of Potatoes to Smith. At the Time of Delivery:

1. John Sends 60 kgs of Potatoes and 60 kgs of Tomatoes to Smith

2. John Sends 120 kg of Potatoes to Smith 

2. Can Smith Refuse to Take the Delivery of the Goods?

Ans: In the above scenarios, since the delivery of goods is not according to the Contract, Smith can exercise the following options:

When the seller has sent a mix of goods:

1. The buyer can reject the complete order since it is not as per the Contract

2. The buyer can accept the delivery of 60 kgs of potatoes 

When the seller has sent a larger quantity than specified in the Contract:

1. The buyer can reject the complete order since it is not as per the Contract

2. The buyer can accept the delivery of 60 kgs of potatoes 

3. The buyer can accept the entire 120 kgs at the rate specified in the Contract

 

Key Learnings from the Chapter

• Contract for the Sale of a good is the rule and regulations based on which the seller delivers a good in exchange for services

• Delivery is the transfer of goods from one person to the other or from one place to another place 

• The seller must sell authentic, timely, and accurate delivery goods

• The buyer must make the payment timely and not perform any act of fraud

• Both the buyers and the sellers need to know their duties and rights.