Contract of sale

Contract of sale

1. CLASS – MBA CONTRACT OF SALE SUBJECT – BUSINESS LAW

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 (seller and buyer), 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, All other essential element of a valid contract must be.

4. Characteristics…… 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

5. SALE AND AGREEMENT TO SELL Sale:- Acc. to Section 4(1) of the Sale of Goods Act, 1930 - “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,1930where under the contract of sale the transfer of property in the goods is to take place ata future time or subject to some condition thereafter to be fulfilled

6. Difference between Sale & Agreement to Sale BASIS OF DIFF. SALE AGREEMENTTO SELL Transfer of Ownership Ownership of goods is transfer immediately. Ownership of goods is not transfer immediately Risk follow Ownership Ownership and risk phases by buyer. Ownership of good not pass to buyer hence risk also don’t pass. Type of Contract Executed Contract Executory Contract Subsequent loss or destruction It is the liability and responsibility of Buyer It is the liability and responsibility of seller Nature Absolute Conditional Right to sell In hands of Buyer In hands of seller

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