The document discusses key concepts in contracts for the sale of goods under the Sale of Goods Act 1930 including: 1) A contract of sale involves the transfer of property in goods from a seller to a buyer in exchange for a price. 2) A sale involves the immediate transfer of property, while an agreement to sell involves transfer at a future time or when conditions are met. 3) Essential elements of a valid sale contract are two parties, goods, price, and transfer of property. 4) Key differences between a sale and hire purchase agreement are that a sale transfers full ownership to the buyer, while a hire purchase agreement transfers ownership only after installments are paid in full.

1. SALE OF GOODS ACT
1930

2. CONTRACT OF SALE OF GOODS
A 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 SELL
According 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’.

3. Essentials of contract of sale
1) Two parties.
2) Goods
3) Price
4) Transfer of general property.
5) Essential elements of a valid contract.
CONTRACT OF SALE HOW MADE.

4. SALE vs. AGREEMENT TO SELL
o Transfer of property passes from o Transfer of property is to take
seller to buyer. place at a future time or subject to
o 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 for
o 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.

5. Hire purchase agreement
A 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.

6. Sale and hire purchase agreement
o Ownership is transferred o Ownership is transferred
from the seller to the buyer. from the seller to the hire
o Position of the buyer is that purchaser.
of the owner. o Position of the hire
o 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.

7. Some other Contracts
Sale and barter or exchange.
Sale and bailment.
Sale and contract for work and materials.

8. 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 goods
a) Existing goods
Specific goods
Ascertained goods
Unascertained or generic goods
b) Future goods
c) Contingent goods
d) Contingent & future goods

9. Effect of destruction of goods
1. Goods perishing before making of contract
(Sec. 7)
2. Goods perishing after the agreement to sell
but before the sale is affected (Sec. 8).

10. Document of title to goods
Conditions 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.

11. Some instances of document of title to goods are
given below:
1. Bill of lading
2. Dock warrant
3. Warehouse-keeper’s or wharfinger’s
certificate
4. Railway receipt
5. Delivery order

12. The price (Sec. 9 & 10)
Ascertainment of price.
Agreement to sell at valuation.
Earnest .

13. 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.