Sale of Goods Act, 1930:
It is an Act to define and amend the law relating to the sale of goods. It tells about the meaning of sale and goods, warranties and conditions, property transfer and includes the rights of unpaid seller. The contracts for the sales of goods are subject to legal principles similar to the all other contracts .This law is included in chapter VII of the Indian Contract Law, 1872[sections 2(5) and 3]. It first came into force from 1st July 1930. It has been re-enacted again in 1930 as sale of goods act [section 4]. Contract of sale of goods:
A contract of sale of goods act is an agreement contract between the seller and buyer to transfer the goods at an agreed price. This includes transfer of goods, both with immediate effect (called as sale) and at a future date (known as agreement of sale) Essentials of a contract of sale:
1) Bilateral contract: It should be a bilateral contracts as the property has to transfer from one party to another. A party can’t sell to himself. 2) Transfer of property: The object should be the transfer of property (ownership) in goods from one person to other. 3) Goods: The subject matter should be goods.
4) Price: The consideration should be money (price). Exchange of goods with that of other is not considered as sale, but barter. 5) All essential elements of a valid contract must be present in contract of sale.
Contract of Sale Formation:1
Sale and agreement to sell:
A contract of sale of goods is nothing but the seller agrees to transfer the resources in goods to the buyer for a certain price. There might be a contract of sale between one owner and another counterpart. A contract of sale can be conditional or an absolute one
Difference between sale and agreement to sale:
1) Nature of contract: Sale is an executed contract whereas Agreement to sell is an executory contract. 2) Creation of Right: A sale creates a ‘right in rem’. An agreement of sale creates ‘right in personam’. 3) Passing of property:...
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