contract of sale

It is one of the business legislation topic which comes under sale of goods act,1930

1. PRESTIGE INSTITUTE OF MANAGEMENT Presentation on Contract of sale Presented to:- Prof. Richa Banerjee Presented by:- Radhika Shandilya Annie Jetwani Ritu Agarwal

2. Contract of Sale Section 4 (1) of the Sale of Goods Act, 1930 defines the term as 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

3. Essentials of Contract of Sale There must be at least two parties The subject matter of the contract must necessarily be goods A price in money (not in kind) should be paid or promised A transfer of property in goods from seller to the buyer must take place A contract of sale must be absolute or c onditional All other essential element of a valid contract must be present in the contract of sale

4. Buyer and seller :-The person who buys the goods or makes an agreement to buy is called the buyer. & the person who sells the goods or makes an agreement to sell is called the seller Goods :- The subject matter of the contract of the sale is essential the goods are movable property other than the actionable claim and money Price :- Goods are always sold for a price Transfer of ownership :- The transfer of ownership can be at the time of making the contract or it can be at future date Characteristics……

5. Sale:- Acc. to Section 4(3) of the Sale of Goods Act, 1930 as- “where under a contract of sale the property in the goods is transferred from the seller to the buyer Agreement to Sell:- Acc. To section 4(3) of the Sale of Goods Act,1930 where under the contract of sale the transfer of property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled

6. Basic of diff. Sale Agreement to sell Transfer of ownership The ownership of goods is transferred to the buyer at the time of contract is made The ownership of goods is not transferred to the buyer at the time of contract but later Right of usage The buyer has the rights to use the goods he buys It is only a contract b/w the buyer, it is done only the goods is transferred Consequences of breach The seller can sue the buyer for payment Seller can sue only for damages Risk of loss Any loss against the goods is bear by buyer Any loss against the goods is bear by seller Diff. between Sale & Agreement to Sale

7. Sale v/s barter :- when goods are exchanged for goods is known as barter deal. A sale implies reimbursement for goods sold in terms of money, so in this case barter deal is not a sale Sale v/s gift :- in case of gift the transfer of ownership does not involve any kind of expense Sale v/s bailment :- the buyer acquires the possession of goods from the seller but does not become the lawful owner of the goods, in bailment one person is the bailor who give the possession of the goods to another for a specific objective, after fulfill the objective the bailee is bound to return the goods back to bailor Contract of sale v/s other contract

8. Types of goods… Goods Existing goods Future goods Contingent goods Specific goods Generic goods

9. Existing goods :- These are those goods that are owned by seller at the time of making the contract Specific goods :- These are those goods that are identified by both the parties Generic goods :-Existing goods that have not been specifically identified by the parties Future goods :- Goods that are not in the possession of the seller at the time of the contract Contingent goods :- These are same future goods, the acquisition of which by the seller is dependent on a contingency which may or may not happen

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