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.


Anonymous,  22 January 2017 at 01:46  

Thank you very much

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