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How Sale Distinguished From Other Transactions-Sale Of Goods Act 1930
Business Environment and Law-Sale Of Goods Act 1930
How Sale Distinguished From Other Transactions-Sale Of Goods Act 1930
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How Sale Distinguished From Other Transactions-Sale Of Goods Act 1930
Sale Distinguished From Other Transactions
Sale,
barter and exchange : If the goods are exchanged for goods only it is called ‘barter’ and not
sale. If money is exchanged for money (say $ 10 for Rs.450 ) it is called ‘EXCHANGE’ only. But where goods are
exchanged for a money consideration, it is called a sale. If the consideration
consists partly of money and partly of goods, it would be a contract of sale.
‘Hire
purchase’ and ‘Agreement to sell’ : In a contract of sale there is an agreement to buy, but in
‘hire purchase’, hirer has the option to buy the goods, if he pays all the
installments. Hence, if he does not exercise his option, the owner cannot sue
for breach of contract but can take his goods back. In an agreement to sell, if
the buyer refuses to buy the goods the seller can sue him for breach of
contract.
Sale
and contract for work and Labour : If the essence of the contract is the rendering of service
and exercise of skill, it is a contract of work and labour, though goods are
also delivered under the contract. But if the delivery of goods is the essence
of the contract although some labour on the part of the seller may be
necessary, it would be a contract of sale.
Tags : Business Environment and Law-Sale Of Goods Act 1930
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