Custom Search

Translate

Thursday, 11 August 2011

Define the sales of goods act and discuss the essential characteristics of a contract of sales of goods

Sales of Goods Act :-
It is defined in these words, "A contract where by the seller transfers or agrees to transfer the property or the goods to the buyer for price."

A contract to transfer the ownership of goods from seller to the buyer is known as contract of sale.


Main Features or Essentials

1. Buyer and Seller :-
One person cannot become buyer and also the seller, there are always two parties to a contract of sale, buyer and seller.

Example :- Mr. Kashif sells the shop to Mr. Zahir. Mr. Kashif is a seller and Mr. Zahir is a buyer in this case.


2. Goods :-
Every kind of movable property except actionable claims (which can be enforced by legal action) and money is regarded as goods.

Example :- Mr. Yuva sells his car to Mr. Larson for Rs. 7 lac. In this case car is a moveable property, so it is a contract of sale.


3. Price :-
Price must be the consideration in the contract of sale. If goods are exchanged with goods it is barter and not a contract of sale.

Example :- "X" sells a book to "Y" for Rs. 300. It is a contract of sale.


4. Transfer of Ownership :-
To constitute the sale contract the seller must transfer or agree to transfer the property ownership to the buyers. So possession and ownership both will be transferred to buyer.

Example :- "X" sells the car to "Y" for 6 lac. The possession and ownership both will transfer to "Y".


5. Sale :-
When ownership and possession of the good is immediately transferred from seller to buyer it is called contract of sale.

Example :- "X" buys a pen from the "Y" and pays the whole price on his hand. It is a sale.


6. Agreement to Sell :-
When the transfer of ownership in the goods is to take place at a future date the contract is called agreement to sell.

Example :- Mr. Bazooka agrees to purchase Mr. Titoo bus for Rs. 25 lac. But the transfer of bus will take place after one year. It is agreement to sell.

0 comments:

Post a Comment

Google+ Followers

Best Song of the Year Baar Baar by Fysul Mirza

  © Blogger template Blue Surfing by Trade Cycle 2014

Back to TOP