(i) Classify the following transactions according to the types of goods they are: (A) A wholesaler of cotton has100bales in his godown. He agrees to…

(a) (i) (A) A wholesaler of cotton has100bales in his godown. So, the goods are existing goods. He agrees to sell50bales and these bales were selected and set aside. On selection, the goods becomes ascertained. In this case, the contract is for the sale of ascertained goods, as the cotton bales to be sold are identified and agreed after the formation of the contract. (B) If A agrees to sell to B one packet of sugar out of the lot of one hundred packets lying in his shop, it is a sale of existing but unascertained goods because it is not known which packet is to be delivered. (ii) Section 13 of the Sale of Goods Act,1930, specifies cases where a breach of condition be treated as a breach of warranty. As a result of which the buyer loses his right to rescind the contract and can claim damages only. In the following cases, a contract is not avoided even on account of a breach of a condition: (i) Where the buyer altogether waives the performance of the condition. A party may for his own benefit, waive a stipulation. It should be a voluntary waiver by buyer. (ii) Where the buyer elects to treat the breach of the conditions, as one of a warranty. That is to say, he may claim only damages instead of repudiating the contract. Here, the buyer has not waived the condition but decided to treat it as a warranty. (iii) Where the contract is non -severable and the buyer has accepted either the whole goods or any part thereof. (iv) Where the fulfilment of any condition or warranty is excused by law by reason of impossibility or otherwise.