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Business Environment and Law-Sale Of Goods Act 1930

How Sale Distinguished From Other Transactions-Sale Of Goods Act 1930

   Posted On :  08.05.2018 01:18 am

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.
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