CONTRACT OF SALE OF GOODS (SALE OF GOODS ACT)

BUSINESS LAW
PRESENTATION ON
THE
TOPIC
CONTRACT OF SALE OF GOODS
PRESENTED BY ROHAN GOYAL OF BCOM PART 1
INSPIRED BY HONOURABLE PROFFESSOR DEEPAK GOYAL(EX PROF. AT ECCC)
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CONTRACT OF SALE OF GOODS
A CONTRACT OF SALE OF GOODS IS CONTRACT
BETWEEN THE SELLER AND THE BUYER IN WHICH
THE SELLER AGREES TO TRANSFER THE PROPERTY OF
GOODS TO THE BUYER FOR CONSIDERATION AS THE
PRICE IN MONEY.

EXPLANATION OF THE TYPES OF CONTRACT OF
SALES
1.AGREEMENT TO SELL: In the agreement to sell, the
seller agrees to transfer the property of goods to the
buyer after fulfilment of the condition.
2.ABSOLUTE SALE: In the sale,the seller immediately
transfers the property of the goods to the buyer for
the consideration as price in money.

EXPLANATION OF ESSENTIALS
1.VALID CONTRACT: The contract of sale of goods
should be valid means it should contain all the
essential elements of the valid contract like free
consent, capacity of the parties and lawful
consideration.
2.TWO PARTIES: The contract of sale of goods
should contain two parties that is seller and the
buyer in which seller agrees to transfer the property
of goods to the buyer and the buyer agrees to give
consideration as price in money. The seller should
not sell the goods to the himself.
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3.AGREEMENT TO TRANSFER THE PROPERTY: There
should be agreeement between the seller and the buyer
in which seller agrees to transfer the property to the
buyer and the buyer agrees to give consideration as the
price in money.
4.GOODS: To make the contract of the sales, there should
be presence of the goods. Goods means the any
movable property or the things which can be seprated
from the land surface like growing crops and trees. The
goods should not be immovable or any actionable
claims.
5.PRICE: Price refers to the consideration paid by the the
buyer for aquiring the property of the goods and the
consideration as price should be in terms of money. The
goods exchanged for the goods is not good
consideration as the price.

DIFFERENCE BETWEEN AGREEMENT TO
SELL AND ABSOULUTE SALE
1.NATURE OF THE CONTRACT: The agreement to sell is
executory contract means in this ownership rights do
not passes whereas the sale is executed contract means
the sale is completed contract.
2.TRANSFER OF THE OWNERSHIP: In the agreement to
sell the ownership rights transfer after the fulfilment of
the condition but in the absolute sale , the ownership
rights immediately transferred.
3.RISK OF LOSS: In the agreement to sell, the risk of loss
is on the seller but in the sale the risk of loss is on the
buyer as the ownership transferred in the sale.

4.CONSEQUENCES OF THE BREACH: On the breach of the
agreement to sell by seller, the buyer use its personal rights
and on the breach of the absolute sale by seller, the buyer can
use personal rights as well as the rights against goods.
If the agreement to sell is breached by the buyer then the
seller can claim its damages and when the sale is breached
the buyer then the buyer can claim its prices.
5.INSOLVENCY OF THE BUYER: If the person becomes insolvent
then the official reciever or assignee is appointed by the court
and so when the buyer gets insolvent then the seller can
claim price in the case of absolute sale and in the case of the
agreement to sell the seller had nothing to do.
6.INSOLVENCY OF THE SELLER: if the seller gets insolvent then
the buyer can claim goods from the official assignee of the
seller and in the case of the absolute sale and in the case of
agreement to sell the buyer can claim its damages from the
official assignee.

7.RIGHT OF PERSONNEL AND RIGHT OF REM: Right of
personnel is right against the particular person and
right to rem is right against the whole world so in
the case of agreement to sell, there is right of
personnel because the agreement is only known to
the seller and the buyer but in the case of absolute
sale, there is right of rem becaue about the sale
third party also knows.
8.RIGHT OF RESALE: In the agreement to sell, there is
no right of resale but in the case of the sale the
buyer can resale the product as the ownership gets
transferred with the sale.
So above are the eights points of difference between
the agreement to sell and the absolute sale.

CONCLUSION
AFTER ANALYISING THE AGREEMENT TO SELL AND
THE ABSOLUTE SALE, ONE CAN CONCLUDE THAT IN
CASE OF BREACH OF THE AGREEMENT OF THE
SALE THE BUYER CAN USE ONLY PERSONAL
RIGHTS AND THE IN THE CASE OF BREACH OF SALE
THE BUYER CAN USE THE PERSONAL RIGHTS AS
WELL AS THE RIGHTS AGAINST THE GOODS.

CONTRACT OF SALE OF GOODS (SALE OF GOODS ACT)

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