Home | ARTS | Business Environment and Law
|
Essentials Of A Contract Of Sale Of Goods– Sale Of Goods Act 1930
Business Environment and Law-Sale Of Goods Act 1930
Essentials Of A Contract Of Sale Of Goods– Sale Of Goods Act 1930
Posted On :
“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:
“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
Last 30 days 542 views
