Sales of good act,1930
Meaning of Contract of Sale
According to Sec. 4(1) of the Sale of Goods Act;1930, “A contract of sale is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer, for a price.” The term ‘contract to sale’ is a generic term and includes both a ‘sale’, and an agreement to sale’.
Formation of Contract of Sale
A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer. The contract may provide for immediate delivery of goods or immediate payment of price or both or for the delivery or payment by instalment, or for postponement of delivery or payment or both. A contract of sale may be make in writing or by words of mouth, or partly in writing and partly by words of mouth or may be implied from the conduct of the parties. Essentials or Characteristics of Con- tract of Sale A contract of sale is just like any other contract and, therefore, must satisfy all the essentials of a valid contract as laid down in Sec. 10 of the Indian Contract Act. Following
are the required of a contract of sale:
(1) Buyer and Seller- In a contract of sale there must be two parties, namely the buyer and the seller. Buyer and seller are two different persons since nobody can buy his own goods.
(2) Goods- The subject matter of sale must be some ‘goods’ which may include both the movable arid the im-movable types.
(4) Transfer of Property- Essence of a contract of sale is transfer of ownership. Any agreement which does not result in the transfer of ownership, cannot be called as a contract of sale.
(3) Price- Consideration for a sale of goods must be some ‘price’. When goods are being exchanged for goods, it is known as barter and is not ‘sale.
(5) Elements of a Valid Contract- A contract of sale must contain all the essentials of a valid contract. A contract of sale may be absolute.
Meaning of Agreement to Sell
According to Sec. 4(3) of the Sale of Goods Act, 1930, where under a contract of sale, the delivery of prop-erty in goods is to take place at a future time or subject to certain conditions, it is called to bean agreement to sell”.An agreement to sell becomes a ‘sale’ when the time elapses or the conditions are fulfilled, subject to which the property in the goods is to be transferred. Unless the property in goods is transferred from the seller to the purchaser,the sale is not said to have been effected.