SALE of goods act

SALE of goods act

LAW OF SALE OF GOODSA 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.

Where there is a transfer it is a contract call a Sale.

Property means transfer of ownership.

Essentials of a Valid contract of SaleTwo PartiesBuyer and sellere.g winding up of partnership firm)

Price Barter system is not acceptable.Partly is valid.A agreed to exchange with B 100 quarters of barley at 2$ per quarter for 52 bollocks valued at 6$ per bullock and pay the difference in cash.

Transfer of general property

Movable goods Property of goods must be transferred.A hotel company provided residence and food making a consolidated charged for both the services. No rebate was allowed if food was not taken. Held supply of food was not for sale of goods but simply a service.

Essential elements of a valid contract

Agreement to SellWhere the transfer of property, in the goods is to take place at a future date or subject to some condition to be fulfilled, the contract is called an agreement to sell.

An agreement becomes sale when time elapses or the conditions are fulfilled.

Sale & Agreement to Sell: Distinguished

Transfer of propertyImmediateFuture

Type of goods - existing/specific goods - future/ contingent goods

Risk of lossWith ownership

Consequences of Breach Seller can sueOnly damages

Sale & Agreement to Sell: DistinguishedRight to Re-sellTitle of goods in sale is not transferableAgreement to sell only damagesGeneral and Particular property (receipt of right in rem /personam)Insolvency of buyerSale-seller to give goods and get rateable amountAgreement- not need to partInsolvency of sellerBuyer entitled to recover goodsOnly rateable amount not goods