SALE OF GOODS ACT

LAW OF SALE OF GOODS

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.

Where there is a transfer it is a contract call a

Sale.

Property means transfer of ownership.

ESSENTIALS OF A VALID CONTRACT OF SALE

Two Parties
Buyer

and seller
e.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 SELL

Where 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 property

Immediate
Future

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

Risk of loss

With ownership

Consequences of Breach

Seller can sue

Only damages

SALE & AGREEMENT TO

SELL: DISTINGUISHED

Right to Re-sell

General and Particular property

(receipt of right in rem /personam)

Insolvency of buyer

Title of goods in sale is not transferable

Agreement to sell only damages

Sale-seller to give goods and get rateable amount

Agreement- not need to part

Insolvency of seller

Buyer entitled to recover goods

Only rateable amount not goods