business law
Unit- 5 Indian Sale of Goods Act, 1930
1. Contract of Sale – Meaning
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. There may be a contract of sale between one part-owner and another [Sec 4(1)]. A contract of sale may be absolute or conditional [Sec
4(2)].
The term ‘contract of sale’ includes both a ‘sale’ and an ‘agreement to sell’.
2. Essentials of a Contract of Sale (Refer text for details)
a. Two Parties: There must be two distinct i.e., a buyer and a seller, to effect a contract of sale and they must be competent to contract. ‘Buyer’ means a person who buys or agrees to buy goods [Sec 2(1)]. ‘Seller’ means a person who sells or agrees to sell goods [Sec 2(13)] (State of Gujarat vs. Raman Lal & Co., 1965)
b. Goods: There must be some goods the property in which is or is to be transferred from the seller to the buyer. The goods which form the subject-matter of the contract of sale must be movable. Transfer of immovable property is not regulated by the Sale of Goods Act.
c. Price: The consideration for the contract of sale, called ‘Price’, must be money. When goods are exchanged for goods, it is not a sale but a barter. There is, however, nothing to prevent the consideration from being partly in money and partly in goods.
(Aldridge vs. Johnson, 1857)
d. Transfer of General Property: There must be a transfer of general property as distinguished from special property in goods from the seller to the buyer.
e. Essential Elements of a Valid Contract: All the essential elements of a valid contract must be present in the contract of sale.
3. Sale and Agreement to Sell
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’, but where the transfer of the property in the goods is to take place at a future time or subject to some conditions thereafter to be fulfilled,
1. Contract of Sale – Meaning
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. There may be a contract of sale between one part-owner and another [Sec 4(1)]. A contract of sale may be absolute or conditional [Sec
4(2)].
The term ‘contract of sale’ includes both a ‘sale’ and an ‘agreement to sell’.
2. Essentials of a Contract of Sale (Refer text for details)
a. Two Parties: There must be two distinct i.e., a buyer and a seller, to effect a contract of sale and they must be competent to contract. ‘Buyer’ means a person who buys or agrees to buy goods [Sec 2(1)]. ‘Seller’ means a person who sells or agrees to sell goods [Sec 2(13)] (State of Gujarat vs. Raman Lal & Co., 1965)
b. Goods: There must be some goods the property in which is or is to be transferred from the seller to the buyer. The goods which form the subject-matter of the contract of sale must be movable. Transfer of immovable property is not regulated by the Sale of Goods Act.
c. Price: The consideration for the contract of sale, called ‘Price’, must be money. When goods are exchanged for goods, it is not a sale but a barter. There is, however, nothing to prevent the consideration from being partly in money and partly in goods.
(Aldridge vs. Johnson, 1857)
d. Transfer of General Property: There must be a transfer of general property as distinguished from special property in goods from the seller to the buyer.
e. Essential Elements of a Valid Contract: All the essential elements of a valid contract must be present in the contract of sale.
3. Sale and Agreement to Sell
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’, but where the transfer of the property in the goods is to take place at a future time or subject to some conditions thereafter to be fulfilled,