Chapter 4: contract of sales; general terms and conditions
Definition of a contract of sale
Sale: “the agreement under which one of the parties undertakes to deliver a thing and the other
party to pay a price in money in return”. As such sale is a reciprocal contract. The seller
commits to handing over an object and the buyer commits to paying the price. Both have an
individual obligation. Good are things and property rights. A thing is a physical object (tangible)
which is subject to human control”.
Things are further divided into:
1. Movable property; all things which are not immovable
2. Immovable property; the ground and everything which is permanently joined to it
(buildings, plants)
It is also possible to buy rights, patent right, copyright, shares. (Differ from the general
definition of a contract of sale). It is not a requirement that the price is fixed at the moment of
conclusion of the contract of sale. If not, it is enough that a reasonable price is paid.
Ordinary sale and consumer sale
The consumer sale has the following characteristics:
- The seller is acting in the course of a profession or business: s/he is a retail trader.
- The buyer is not acting in a the course of a profession or business: is a consumer.
- The sale concerns movable property.
A consumer sale is the purchase of movable property by a consumer from a retail trader, shop
owner (B2C).
Ordinary sale primarily concern the “sale of goods”; contracts of sale between businesses
(B2B).
Purchase of stocks, houses and land fall neither under consumer sale or ordinary sale of
goods. Because, the consumer is in a weaker position compared to the other party. The rules
of consumer sale offer more protection to the consumer than in an “ordinary sale”.
The contract of sale is a special contract, (general laws which apply to all contracts still apply).
This is also by means of offer and acceptance. The contract of sale can be annulled by the
injured party if the contract arose under the influence of vitiated consent (error, fraud, abuse of
circumstance or threat). The doctrine of legitimate expectations also applies that the buyer
must have good reason to believe that the seller’s offer was the offer that the seller genuinely
intended. (€100 and €1000)
Aspects of the contract of sale
- Delivery; the seller is obligated to transfer ownership of the good and to deliver it. By
movable property, transfer of ownership occurs through the act of putting the buyer in
possession of the property. If a good has been sold but not yet delivered, the buyer
bears the risk of damage to or loss of the good from the moment of delivery.
- Conformity; the purchased good must have those characteristics which the buyer is
entitled to expect on the grounds of the contract. Conformity not only applies to the
characteristics, but also to characteristics that the seller has claimed the good
possesses like it can change any colour, but can’t change blue, so doesn’t conform to
a characteristic. If this description is included in a written guarantee, there will be fewer
issues with proving it, but whether there is a written guarantee, the buyer has the right
to cancel the sale.
Definition of a contract of sale
Sale: “the agreement under which one of the parties undertakes to deliver a thing and the other
party to pay a price in money in return”. As such sale is a reciprocal contract. The seller
commits to handing over an object and the buyer commits to paying the price. Both have an
individual obligation. Good are things and property rights. A thing is a physical object (tangible)
which is subject to human control”.
Things are further divided into:
1. Movable property; all things which are not immovable
2. Immovable property; the ground and everything which is permanently joined to it
(buildings, plants)
It is also possible to buy rights, patent right, copyright, shares. (Differ from the general
definition of a contract of sale). It is not a requirement that the price is fixed at the moment of
conclusion of the contract of sale. If not, it is enough that a reasonable price is paid.
Ordinary sale and consumer sale
The consumer sale has the following characteristics:
- The seller is acting in the course of a profession or business: s/he is a retail trader.
- The buyer is not acting in a the course of a profession or business: is a consumer.
- The sale concerns movable property.
A consumer sale is the purchase of movable property by a consumer from a retail trader, shop
owner (B2C).
Ordinary sale primarily concern the “sale of goods”; contracts of sale between businesses
(B2B).
Purchase of stocks, houses and land fall neither under consumer sale or ordinary sale of
goods. Because, the consumer is in a weaker position compared to the other party. The rules
of consumer sale offer more protection to the consumer than in an “ordinary sale”.
The contract of sale is a special contract, (general laws which apply to all contracts still apply).
This is also by means of offer and acceptance. The contract of sale can be annulled by the
injured party if the contract arose under the influence of vitiated consent (error, fraud, abuse of
circumstance or threat). The doctrine of legitimate expectations also applies that the buyer
must have good reason to believe that the seller’s offer was the offer that the seller genuinely
intended. (€100 and €1000)
Aspects of the contract of sale
- Delivery; the seller is obligated to transfer ownership of the good and to deliver it. By
movable property, transfer of ownership occurs through the act of putting the buyer in
possession of the property. If a good has been sold but not yet delivered, the buyer
bears the risk of damage to or loss of the good from the moment of delivery.
- Conformity; the purchased good must have those characteristics which the buyer is
entitled to expect on the grounds of the contract. Conformity not only applies to the
characteristics, but also to characteristics that the seller has claimed the good
possesses like it can change any colour, but can’t change blue, so doesn’t conform to
a characteristic. If this description is included in a written guarantee, there will be fewer
issues with proving it, but whether there is a written guarantee, the buyer has the right
to cancel the sale.
