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Section 81: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 80 All 266 Sections of Indian Contract Act Section 82

Legal Commentary & Landmark Judgments: Section 81

Section 81 of the Indian Contract Act, 1872 originally regulated the sale of goods where the seller had to do something to ascertain the price (such as weighing, measuring, or testing), providing that ownership did not pass until such act was performed and communicated; repealed by Act 3 of 1930 and succeeded by Section 22 of the Sale of Goods Act, 1930.

  • Price Ascertainment Requirement: Governed specific goods in a deliverable state where the seller was bound to weigh, measure, test, or perform some other act for the purpose of ascertaining the total purchase price.
  • Postponement of Title Transfer Pending Act and Notice: Property in the goods did not transfer to the buyer until the weighing, measuring, or testing was performed and notice thereof was given to the buyer.
  • Legislative Repeal and Modern Succession (Act 3 of 1930): Repealed by Act 3 of 1930 and re-enacted as Section 22 of the Sale of Goods Act, 1930, preserving the condition precedent character of price ascertainment.
Key Landmark Precedents:
  • National Coal Development Corpn. Ltd. v. Manmohan Mathur AIR 1970 SC 1218: The Supreme Court recognized that where coal is sold subject to weighment at a designated weighbridge, passing of property is governed by the principles of Section 81 Contract Act / Section 22 SGA.
  • Agricultural Market Committee v. Shalimar Chemical Works Ltd. (1997) 5 SCC 516: The Supreme Court held that weighing, quality testing, and price calculation are statutory conditions precedent postponing the passing of property under the Sale of Goods Act.
Courtroom Practice & Strategic Litigation Guidance:

In bulk commodity transactions (grains, petroleum, minerals), specify weighment and chemical assay testing as mandatory conditions precedent under Section 22 SGA (succeeding Section 81). If cargo is lost or damaged prior to weighbridge certification, plead that title and risk remained with the seller, defeating the seller's claim for the purchase price.

Section 80 All 266 Sections of Indian Contract Act Section 82