Presented By : Akhil Goyal MBA (Pharmaceutical Management 1st year) Roll No.

- 01

CONTRACT OF SALE
It is defined under section 4(1) as a contract, whereby, the seller transfers or agrees to transfer the property in goods to the buyer for a price. Important points of this contract are: 1. Owner (or Seller) 2. Buyer (or Purchaser) 3. Price (Money or Money Equivalent)

Principles of The Sale of Goods Act

According to section 4 & 5,there are six principles of Contract of Sale : 1. Two parties 2. Goods 3. Transfer of ownership 4. Price 5. All essentials of a valid contract of sale 6. Includes both a Sale & An agreement to sell

1. Two Parties
Contract is bilateral in nature i.e. property in goods has to pass from one party to another.

2. Goods
Subject matter of a Contract of sale must be goods. According to Section 2(7), the term goods has been defined as: Every kind of movable property other than actionable claims and money, and include stocks 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 of sale.

3. Transfer of Ownership
Integral part of contract of sale. According to Section 2(11), property means general property in goods and not merely a special property.

4. Price
Buyer must pay some price for goods. Section 2(10) of Sale of Goods act defines the term Price as the money consideration for sale of goods.

5. All essentials of a valid contract

Contract of Sale must have all the elements of a valid contract : Free consent Consideration Competency of contracting parties Lawful object Legal formalities to be completed , etc.

If any of the essentials is missing, then contract of sale is not valid.

6. Includes both a Sale& Agreement to sell

According to section 4(3), Property in goods transferred from seller to buyer Sale (Executed/Absolute contract). Transfer of property of goods takes place at a future time or subject to some condition to be fulfilled thereafter Agreement to sell (Executory contract).