CONTRACT OF SALE OF GOODSA contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property to goods to the buyer for a price.SALE AND AGREEMENT TO SELLAccording to Sec. 4 (3), where under a contract of sale, the property in the goods is transferred from the seller to the buyer, the contract is called a ‘sale’, but where the transfer of the property in the goods is to take place at a future time or subject to some conditions thereafter to be fulfilled, the contract is called an ‘agreement to sell’.
Essentials of contract of sale1) Two parties.2) Goods3) Price4) Transfer of general property.5) Essential elements of a valid contract.CONTRACT OF SALE HOW MADE.
SALE vs. AGREEMENT TO SELLo Transfer of property passes from o Transfer of property is to take seller to buyer. place at a future time or subject too Existing and specific goods. certain conditions.o Loss falls on the buyer. o Future and contingent goods.o If there is a breach of contract by o Loss falls on the seller. the buyer, then seller can sue for o If there is a breach of contract by the price. the buyer, then seller can sue foro Cannot resell the goods. the damages.o It creates jus in rem. o Can resell the goods.o If the buyer becomes insolvent o It creates jus in personam. then seller in absence of lien over o If the buyer becomes insolvent the goods must return them to then seller is not bound to part official receiver. with the goods until he is paid for.o If seller becomes insolvent, the o If seller becomes insolvent, the buyer is entitled to recover the buyer can claim a rate able goods from the official receiver. dividend and not the goods.
Hire purchase agreementA hire purchase is the contract whereby the owner of the goods lets them on hire to another person called hire purchaser on payment of rent to be paid in installments and upon agreement that when a certain number of such installments is paid , the property in the goods will pass to the hirer.It is a bailment plus an agreement to sell.
Sale and hire purchase agreemento Ownership is transferred o Ownership is transferred from the seller to the buyer. from the seller to the hireo Position of the buyer is that purchaser. of the owner. o Position of the hireo Buyer cannot terminate the purchaser is that of the contract. bailee.o Payment made by the buyer o Hire purchaser can is towards the price of the terminate the contract. goods. o Installments paid by the hire purchaser are regarded as the hire charges.
Some other ContractsSale and barter or exchange.Sale and bailment.Sale and contract for work and materials.
Subject -matter of contract of sale Goods from the subject- matter of a contract of sale. Actionable claims and money, are not goods Classification of goodsa) Existing goods Specific goods Ascertained goods Unascertained or generic goods b) Future goods c) Contingent goods d) Contingent & future goods
Effect of destruction of goods1. Goods perishing before making of contract (Sec. 7)2. Goods perishing after the agreement to sell but before the sale is affected (Sec. 8).
Document of title to goodsConditions to be fulfilled by a document of title to goods.1. It must be used in the ordinary course of business.2. The undertaking to deliver the goods to the possessor of the document must be unconditional.3. The possessor of the document, by virtue of holding such document, must be untitled to receive the goods unconditionally.
Some instances of document of title to goods are given below:1. Bill of lading2. Dock warrant3. Warehouse-keeper’s or wharfinger’s certificate4. Railway receipt5. Delivery order
The price (Sec. 9 & 10)Ascertainment of price.Agreement to sell at valuation.Earnest .
Stipulations as to time (Sec. 11)1. Stipulations relating to time of payment.2. Stipulations not relating to time of payment, e.g., delivery of goods ,etc.