contract of sale

Contract of sale:
According to Sec 4 of sales of goods act.
“A contract where by the seller transfer or agrees to transfer the property or the goods to the buyer for a price.

(1) Subject to this or any other Act, a contract of sale may be made in writing, either with or without seal, or by word of mouth, or partly in writing and partly by word of mouth, or may be implied from the conduct of the parties.
(2) Nothing in this section affects the law relating to corporations.

Essential features of sale:
Following are essential of sale.
(I) Bilateral contract:
There must be two parties the buyer and seller. The seller and buyer must be different persons.
(II) Price:
Consideration for a sale of goods must be money called price. If goods are exchanged with goods it is not sale.
(III) Goods:
The subject matter of sale must be goods meaning.
(a) Every kind of moveable property other than actionable claims and money and includes stock and shares, growing crops, grass and attached to or forming part of the land which are agreed to be served before sale or under a contract of sale.
(b) Things attaching to earth can be subject matter of sale provided they are served from earth under the contract.
(IV) Transfer of ownership:
There must be agreement or agree to transfer the property to the buyer.
(V) Sale and agreement to sell:
The term contract of sale includes, both ‘sale’ and agreement to sell.
(VI) Essentials of a valid contract:
Contract of sale must have all the essential of a valid contract.