this presentation is about ascertainment of goods as on section 10 under the sales of goods act 1930

1. ASCERTAINMENT OF
PRICE UNDER
SECTION 10
UNDERSTANDING THE PRINCIPLES AND METHODS

2. • Definition: Ascertainment of price refers to determining the price of
goods when it is not explicitly stated in the contract of sale.
• Section 10 of the Sales of Goods Act provides guidance on this matter.
• Objective: To explore the principles and methods of ascertaining the
price.

3. PRINCIPLE 1: AGREEMENT OF PARTIES:
The starting point for ascertaining the price
is the agreement between the buyer and
seller.
Parties have the freedom to determine the price
through negotiation and mutual consent.
The contract should clearly state the agreed-upon
method of determining the price.

4. PRINCIPLE 2: REASONABLE PRICE:
• When the contract is silent on price but the goods
are in existence at the time of the contract, a
reasonable price must be determined.
The reasonable price is determined by considering various factors:
Market rates for
similar goods in
similar
circumstances.
Quality, condition,
and availability of
the goods.
Any relevant
market fluctuations
or trends.

5. PRINCIPLE 3: THIRD-PARTY
DETERMINATION:
Parties may choose to have a third party determine the price.
The contract should specify the process and the person responsible
for determining the price.
If the third party fails to determine the price within the specified
timeframe, the contract may become void.

6. Independent Valuers:
• Qualified and impartial
valuers assess the value of
goods based on their
expertise and market
knowledge.
• Their assessment provides
an objective and
professional opinion on
the price.
1.Expert Appraisals:
• Industry experts or
specialists evaluate the
goods and provide their
opinion on the appropriate
price.
• Their specialized
knowledge and insight into
the market contribute to a
fair evaluation.
1.Market Comparisons:
• Price determination based
on comparing the goods to
similar items recently sold
in the market.
• This method considers
prevailing market
conditions and prices,
providing a benchmark for
pricing.

7. PRINCIPLE 4: PRICE FIXED IN RELATION TO
ANOTHER FACTOR:
•In some cases, the price is linked to an external factor, such
as:
•Market price on a specific day or time. •Price of a particular commodity.
If the specified factor cannot be ascertained or determined, the
contract may become void.

8. Example 1: A contract for the sale of an
antique painting with no specified price.
The buyer pays a reasonable price based
on market rates for similar artworks.
Example 2: A contract to purchase wheat
with the price linked to the current
market price on the day of delivery.

9. • Ascertainment of price involves the agreement of parties, determination of a
reasonable price, third-party involvement if necessary, and consideration of
external factors.
• Understanding these principles and methods ensures a fair and transparent
process in determining the price of goods.
• Clear communication, negotiation, and adherence to legal requirements are
essential for a successful price ascertainment process.