“A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price.” [Sec. (4) 1].
Essentials Of A Contract Of
Sale Of Goods
“A contract of sale of goods is a
contract whereby the seller transfers or agrees to transfer the property in
goods to the buyer for a price.” [Sec. (4) 1].
Important features of a contract
of sale
Two
Parties:
Mutual
Consent: Just the presence of two parties is not sufficient. The parties must agree on the transfer
of property.
Transfer
of Property: What a contract of sale stipulates is the transfer of property i.e. The
ownership of the goods and not the possession of the goods.
Goods:
Goods means every kind of movable property other than actionable claims and money. But it
includes stock and shares, growing crops, grass and things attached to or
forming part of the land which are agreed to be severed before sale or under
the contract of sale. [Sec. 2(7)]. Since the price of the goods is expressed in
terms of the money, money itself cannot be bought, and hence, money is not
considered as goods.
Price:
Under a contract of sale, property in the goods is transferred to the buyer for a price. Price is the
money consideration for the goods.
Varied
requirement as to delivery and payment: The contract may provide for the immediate delivery
of goods or immediate payment of the price or both.
Requires
no formalities:
Absolute
or Conditional: An absolute contract of sale is technically called a ‘sale’. Thus “where under a contract of sale
the property in the goods is transferred from the seller to the buyer, the
contract is called a sale..”[Sec. 4 (3)]. Thus a contract of sale is a generic
term including ‘Sale’ as well as ‘an agreement to sell’
Tags : Business Environment and Law-Sale Of Goods Act 1930
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