Contract of Sale

Contract of Sale

• Section 4 (1) of the Sale of Goods Act, 1930

defines the term as a contract of sale of goods
is a contract whereby the seller transfers or
agrees to transfer the property in goods to the
buyer for a price
 Essentials of Contract of Sale
• There must be at least two parties

• The subject matter of the contract must necessarily be goods

• A price in money (not in kind) should be paid or promised

• A transfer of property in goods from seller to the buyer must

take place

• A contract of sale must be absolute or conditional

• All other essential element of a valid contract must be

 Characteristics
 Buyer and seller:-The person who buys the goods or makes
• An agreement to buy is called the buyer. & the person who sells the
goods or makes an agreement to sell is called the seller

 Goods:- The subject matter of the contract of the sale is

• Essential the goods are movable property other than the actionable
claim and money

 Price:- Goods are always sold for a price

 Transfer of ownership:- The transfer of ownership can be at the

time of making the contract or it can be at future date
• Sale:- Acc. to Section 4(3) of the Sale of Goods Act,
1930 as- “where under a contract of sale the property in
the goods is transferred from the seller to the buyer

• Agreement to Sell:- Acc. To section 4(3) of the Sale of

Goods Act,1930 where under the contract of sale the
transfer of property in the goods is to take place at a
future time or subject to some condition thereafter to be
fulfilled
 Contract of sale v/s other
• —Sale v/s barter:- when goods are exchanged for goods is
known as barter deal. A sale implies reimbursement for
goods sold in terms of money, so in this case barter deal is
not a sale
• —Sale v/s gift:- in case of gift the transfer of ownership
does not involve any kind of expense
• —Sale v/s bailment:- the buyer acquires the possession of
goods from the seller but does not become the lawful
owner of the goods, in bailment one person is the bailor
who give the possession of the goods to another for a
specific objective, after fulfill the objective the bailee is
bound to return the goods back to bailor
 Types of goods…
Types of Goods:

1.)Existing goods
Specific goods
Generic goods

2.)Future goods

3.)Contingent
• —Existing goods:- These are those goods that are owned by
seller at the time of making the contract

• - Specific goods:- These are those goods that are identified by

both the parties

• - Generic goods:-Existing goods that have not been

specifically identified by the parties

• —Future goods:- Goods that are not in the possession of the

seller at the time of the contract

• —Contingent goods:- These are same future goods, the

acquisition of which by the seller is dependent on a
contingency which may or may not happen
THANK YOU!!!!!