Contract of Sale ðïļ
Imagine this: You walk into a shop. You see a shirt. You like it. You pay âđ500. You take it home. This simple act is governed by the Sale of Goods Act, 1930.
Definition (Section 4): "A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price."
Essentials of a Contract of Sale ð
- Two Parties: Buyer and Seller (Distinct persons. You cannot sell to yourself).
- Goods: The subject matter must be "Goods" (Movable property, not land or services).
- Price: Must be in Money (Not barter. Exchanging car for bike is not sale, it's "Exchange").
- Transfer of Property: Ownership must pass from Seller to Buyer.
- All Essentials of a Valid Contract: Free consent, capacity, lawful object, etc. (from Contract Act).
'Goods' means every kind of movable property other than actionable claims and money. Examples: Books, Cars, Grains, Oil, Electricity (yes!). Not Goods: Land, House, Copyright (Actionable Claim), âđ500 Note (Money).
Sale vs Agreement to Sell
- Sale: Ownership passes immediately.
- Agreement to Sell: Ownership passes in future or on fulfillment of condition.
(We will study this in detail in the next lesson).
Quiz Time! ðŊ
Test Your Knowledge
Question 1 of 5
1. Sale of Goods Act was enacted in the year:
ðĄ Final Wisdom: "Every time you buy a samosa from a street vendor, you are entering into a Contract of Sale. The law is everywhere!" ðĨ
Next up: Sale vs Agreement to Sell - Now or Later? ð°ïļ