The contact of sale
Agreement to sell
Formation of the contract
Terms of the contract
Transfers of the property
Transfer of the title
Performance of the contract
Remedies for breach
1.1 Definition of Goods
Sale of Good Act 1957 defines the word goods as meaning ‘every kind of movable property other than actionable claims and money, and includes 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 of sale. By virtue of this definition therefore land is excluded from the sale of goods act. Existing goods
Are goods already owned or possessed by the seller and may be either specified or agreed upon at the time a contract of sale is made. Specific good
Means goods identified and agreed upon at the time a contract of sale is made. Future goods
Goods to be manufactured or produce by the seller after the making of the contract of sale.
2.0 The contract of sale
A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the properties in good to the buyer for a price. A sale occurs when the ownership or property in good passes to the buyer.
3.0 Agreements to sell
A sale must be distinguished from an agreement to sell. A sale is a conductor under which the property in the goods is transferred from the seller to the buyer. An agreement to sell is a contract under which the transfer of the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled an agreement to sell becomes a sale the time elapses or the condition are fulfilled subject to which the property in the goods is to be transferred. 4.0 Formation of the contract
A contract of sale is made by an offer to buy or sell goods at a price and by the acceptance of such an offer. The contract may provide for the immediate delivery of the goods or the immediate payment of the price or both. Delivery or payment may even be by instalment. Price means the money consideration for the sale of goods. Formalities
A contract of sale may be made by writing or by word of mouth or partly in writing and partly in word of mouth or may be implied from the conduct of the parties. Price
A contract of sale is basically an offer to buy or sell goods for a price and of such an offer. Price is the money consideration for the sale of goods. Price may be fixed in the following manner: * It may be fixed by the contract
* It may be left to be fixed in a manner agreed in the contract * It may be determined by the course of dealing between the parties * Where the price is not determined in any one of the aforesaid ways, the buyer must pay reasonable price. Capacity of contract
Contract is regulated by the Contracts Act 1950. The legal principles and the law on contract governing capacity in ordinary contract law apply to contracts of sale.
5.0 Terms of the contract
Condition and Warranties
A stipulation in a contract of sale with references to goods which are the subject thereof may be a condition or a warranty. * Condition
Essential to the main purpose of the contract the breach of which gives rise to a right to treat them as repudiated. As a general rule a breach of condition entitles the innocent party to repudiate the contract. However, in the following circumstances the innocent party cannot repudiate the contract but can merely claim damages.
A warranty is the stipulation collateral to the main purpose of the contract the breach of which gives rise to claim for damages but not a right to reject the goods and treat the contract as repudiated. Whether a stipulation is a condition or warranty depends in each case on the construction of the contract.
* Stipulation as to time
Unless it different stipulation appears from the terms of the contract, stipulation...