Dr. Prem Kumar
, Contract of Sale
‘A contract of sale of goods is a contract whereby the
seller either transfers or agrees to transfer the property
in goods to the buyer for a decided price.’
section 4(1) of the Sale of Goods Act, 1930
a contract for the sale of goods can either be a sale or
an agreement of sale.
, Sale Agreement to Sell
The ownership of the property in
The property in goods is goods is not transferred
transferred at once to the buyer immediately.
from the seller. The objective of the agreement is to
transfer the goods at a future date,
once some certain conditions are
Section 4(3) of the Act says satisfied.
that “where under a contract of
sale the property in the goods The section 4(3) of the sale of
is transferred from the seller to Goods Act defines it as, “where the
transfer of the property in the goods
the buyer, the contract is then is to take place at a future time or
known as a sale.” subject to some condition thereafter
to be fulfilled, the contract is called
an agreement to sell.”
, Elements of A Contract Of Sale
1. Two Parties: A contract of sale of goods is bilateral in nature
wherein property in the goods has to pass from one party to
another. One cannot buy one’s own goods.
For example, A is the owner of a grocery shop. If he supplies the
goods (from the stock meant for sale) to his family, it does not
amount to a sale and there is no contract of sale.
2. Goods: The subject matter of a contract of sale must be goods.
Every kind of movable property is regarded as ‘goods’.
Contracts relating to services are not considered as contract of
sale.
Immovable property is governed by a separate statute, ‘Transfer
of Property Act’.
, Contract of Sale
‘A contract of sale of goods is a contract whereby the
seller either transfers or agrees to transfer the property
in goods to the buyer for a decided price.’
section 4(1) of the Sale of Goods Act, 1930
a contract for the sale of goods can either be a sale or
an agreement of sale.
, Sale Agreement to Sell
The ownership of the property in
The property in goods is goods is not transferred
transferred at once to the buyer immediately.
from the seller. The objective of the agreement is to
transfer the goods at a future date,
once some certain conditions are
Section 4(3) of the Act says satisfied.
that “where under a contract of
sale the property in the goods The section 4(3) of the sale of
is transferred from the seller to Goods Act defines it as, “where the
transfer of the property in the goods
the buyer, the contract is then is to take place at a future time or
known as a sale.” subject to some condition thereafter
to be fulfilled, the contract is called
an agreement to sell.”
, Elements of A Contract Of Sale
1. Two Parties: A contract of sale of goods is bilateral in nature
wherein property in the goods has to pass from one party to
another. One cannot buy one’s own goods.
For example, A is the owner of a grocery shop. If he supplies the
goods (from the stock meant for sale) to his family, it does not
amount to a sale and there is no contract of sale.
2. Goods: The subject matter of a contract of sale must be goods.
Every kind of movable property is regarded as ‘goods’.
Contracts relating to services are not considered as contract of
sale.
Immovable property is governed by a separate statute, ‘Transfer
of Property Act’.
