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A definition of contract and its characteristics

Six essential characteristics of a contract of sale of goods Article shared by Essential characteristics of a contract of sale of goods are given below: The first essential is that there must be two distinct parties to a contract of sale, viz. However, there may be a contract of sale between one part-owner and another, e.

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Similarly, a partner may buy the goods from the firm in which he is a partner and vice-versa. Transfer of property in the goods is another essential of a contract of sale of goods. A mere transfer of possession of the goods cannot be termed as sale. To constitute a contract of sale the seller must either transfer or agree to transfer the property in the goods to the buyer.

Goodwill, trademarks, copyrights, patents right, water, gas, electricity, decree of a court of law, are all regarded as goods. Shares and stock are also included in goods.

  • It is an agreement to sell for B;
  • To constitute a contract of sale the seller must either transfer or agree to transfer the property in the goods to the buyer;
  • A buys some furniture for Rs 2,000 and agrees to pay for that in two monthly instalments, the ownership to pass to him on the payment of second instalment.

A book debt is not goods because it can only be assigned as per the Transfer of Property Act but cannot be sold. It is not regarded goods because it is the medium of exchange through which goods can be bought.

Old and rare coins, however, may be treated as goods and sold as such.

It may be mentioned that sale of immovable property is governed by the Transfer of Property Act, 1882. But if goods are sold partly for goods and partly for money, the contract is one of sale Aldridge vs Johnson. There is immediate conveyance of the ownership and mostly of the subject-matter of the sale as well delivery may also be given in future.

  1. It is an agreement to sell for A and an agreement to buy for B. Neither payment nor delivery is necessary at the time of making the contract of sale.
  2. It is an executory contract and refers to a conditional sale.
  3. It is an executed contract.
  4. There is an agreement to sell for the furniture dealer. Similarly, a partner may buy the goods from the firm in which he is a partner and vice-versa.

It is an executed contract. An agreement to sell: It is an executory contract and refers to a conditional sale. It is an agreement to sell, since A agrees to transfer the ownership of the scooter to B at a future time.

  • It is an agreement to sell for B;
  • A book debt is not goods because it can only be assigned as per the Transfer of Property Act but cannot be sold;
  • It is an executory contract and refers to a conditional sale;
  • It is an agreement to sell, since A agrees to transfer the ownership of the scooter to B at a future time;
  • But if goods are sold partly for goods and partly for money, the contract is one of sale Aldridge vs Johnson.

It is an agreement to sell for B. It becomes a sale when the condition is fulfilled by B.

Six essential characteristics of a contract of sale of goods

It is an agreement to sell for A and an agreement to buy for B. A buys some furniture for Rs 2,000 and agrees to pay for that in two monthly instalments, the ownership to pass to him on the payment of second instalment.

  1. Transfer of property in the goods is another essential of a contract of sale of goods. There is immediate conveyance of the ownership and mostly of the subject-matter of the sale as well delivery may also be given in future.
  2. It is an agreement to sell, since A agrees to transfer the ownership of the scooter to B at a future time. The offer may be made either by the seller or the buyer and the same must be accepted by the other.
  3. It is an agreement to sell for A and an agreement to buy for B. Old and rare coins, however, may be treated as goods and sold as such.
  4. Where articles are exhibited for sale and a customer picks up one and the sales assistant packs the same for him, there has resulted a contract of sale of goods by the conduct of the parties.
  5. An agreement to sell.

There is an agreement to sell for the furniture dealer. No formalities to be observed Sec. The Sale of Goods Act does not prescribe any particular form to constitute a valid contract of sale. A contract of sale of goods can be made by mere offer and acceptance. The offer may be made either by the seller or the buyer and the same must be accepted by the other.

Popular 'Corporate, Commercial, & General Law' Terms

Neither payment nor delivery is necessary at the time of making the contract of sale. Further, such a contract may be made either orally or in writing or partly orally and partly in writing or may be even implied from the conduct of the parties.

Where articles are exhibited for sale and a customer picks up one and the sales assistant packs the same for him, there has resulted a contract of sale of goods by the conduct of the parties.