Learning Outcome: After completion of this lesson students will be able to- a) differentiate between sale and agreement to sell b) define contract for sale of goods c) define goods

1. Preeti Kana Sikder
Assistant Professor
Jahangirnagar University

2. LECTURE CONTENTS
Definition of Contract of Sale of Goods
Elements of a Contract of Sale of Goods
Sale
Agreement to Sell

3. GOODS

4. CONTRACT FOR SALE OF GOODS
A contract of sale of goods is a contract whereby the
seller transfers the property to the buyer for a price.
There are two parties: buyer and seller.
However there can be a contract for sale of goods
between two part owners in case of joint ownership,
where one owner sells his part of property to the other
owner.

5. CONTRACT FOR SALE OF GOODS
To constitute a contract for sale of goods, the seller
must agree to transfer his ownership in goods to the
buyer. It distinguishes the contract for sale of goods
from rent.
The contract is for goods; not for any immoveable
property.

6. DEFINITION OF GOODS
Section 2(7) of the Sale of Goods Act, 1930
Goods means every kind of moveable property other
than actionable claim or money and includes electricity,
water, gas, stock and shares, growing crops, grass and
things attached to or forming part of the land which are
agreed to be severed before sale or under the contract for
sale.

7. CONTRACT FOR SALE OF GOODS
The contract may be made for existing goods owned
by the seller or any future goods which the seller
may acquire. Such acquisition of ownership by the
seller may depend on some contingencies.
There must be a price to be paid by the buyer in
exchange of the goods. Price can be in cash or in
kind. It may be fixed in the contract or to be fixed
subsequently in an agreed manner.

8. CONTRACT FOR SALE OF GOODS
No particular form is required to make a contract
for sale of goods. It can be oral or written,
expressed or implied.
Contract for sale of goods includes contract to sell
and contract for agreement to sale.

9. SALE AND AGREEMENT TO SELL
When under a contract of sale, the property in the
goods is transferred from the seller to the buyer,
the contract is a sale.
Where under a contract of sale, the transfer of the
property in goods is to take place at some future
date, or subject to some conditions to be fulfilled,
the contract is called an agreement to sell.

10. Sale
Ownership of the goods passes
immediately to the buyer.
It is an executed contract
By way of sale, the buyer gets
the right over the property
enforceable against all
The buyer bears the risks of loss
and damage to the property.
Agreement to sell
Ownership passes at future time
It is an executory contract
By agreement to sell, buyer gets
right only to be enforced against
the seller, because for the public,
seller is still the owner of the
property
The seller bears the risks of loss
and damage to the property.

11. Sale
The seller can claim price from
the buyer.
If seller resells the goods to 3rd
party, the buyer can claim the
goods from 3rd party.
For bankruptcy of buyer, the
seller can claim unpaid price; in
case of bankruptcy of seller, the
buyer can claim the goods if in
possession of the seller
Agreement to sell
The seller cannot claim price from
the buyer but he can claim
damages for refusal to buy the
goods.
In case of resale by the seller, the
buyer can only claim damages
from the seller.
For bankruptcy of buyer, the seller
can retain the goods; in case of
bankruptcy of the seller, the buyer
asks for the paid price

12. Section 2 (1), (6), (7), (10), (11), (13)
Section 4
Section 6
Section 26