What is Contract of Sale? ( The rules which determine the time when the property in goods passes from seller to buyer)

 

What is Contract of Sale? ( The rules which determine the time when the property in goods passes from seller to buyer)

Introduction:

A contract
Sale is one under which the seller transfers or agrees to transfer the property in goods to the buyers for a money consideration called the price. This definition includes not only an actual sale but also an agreement to sell. An agreement to sell in one whereby the transfer of the title in the goods is to take place at some future time, or subject to some conditions thereafter to be fulfilled; it becomes a sale only after the lapse of time fixed or on the fulfillment of the conditions. Like all other contracts in law, contract for the sale of goods can be no legal effect unless they are made for good and valuable consideration.

Valuable consideration means any benefits to a promisor or a detriment to a promise, which is sufficient in law to support a promise. In the sale of good consideration must consist of money. If it does not consist of money but anything else, the transaction is not one of sale but of exchange or barter.

There is a general rule of law that, when one person enters into a contract to buy goods from another and later it turns out that the seller had no right to the goods, then the rule is that a person who is not the owner of the goods can not pass title to them.

The time transfer of property is goods pass from buyer to seller is  fixed by the following rules:

1. If the contract is unconditional and relates to specific goods ready for delivery, the property pasese immediately the contract is made , even though actual delivery or payment is deffered.

2. If the goods are to be measured or weighed by the seller, or if some other conditions is to be fulfilled by him in order conditions is to be fulfilled by him in order to put the goods into a deliverable state, the property does not pass until the act has been performed by the seller and notice has been given to the buyer.

3. If the goods are sold on approval, the property passes when, by word or deed, the buyer signifies his approval and adoption of the transaction.

4. If the seller reserve the right of disposal until certian conditions have been fulfilled the property does not pass the fulfillment of those conditions.

In making an offer of sale, the offerer may attach any conditions he pleases, but whether his terms and conditions or warranties depend upon the construction of the contract. The condition is a term in law ( which may be oral or written) that goes directly to the root of the contract or is so essential to its very nature that if it's is broken the innocent party can treat the contract as discharged. A warranty , on the other hand, is a term of the contract which is collateral or subsidiary to the main purpose of the contract. It is therefore not so vital as to effect a discharge of the contract.

Contract of sale

What is Contract of Sale?

A contract of sale is a legal agreement between a buyer and a seller that outlines the terms and conditions under which a particular item or property will be transferred from the seller to the buyer in exchange for an agreed-upon price. It typically includes details such as the description of the item, the price, payment terms, delivery terms, warranties, and other relevant terms and conditions. This contract is a fundamental element of commercial transactions and serves to protect the rights and obligations of both parties involved in the sale.

The Rules of Contract of Sale

A contract of sale is a legal agreement between a buyer and a seller for the transfer of ownership of goods or property in exchange for a price. While the specific rules can vary by jurisdiction, here are some general principles and elements that are typically part of a contract of sale:

Offer and Acceptance: The process begins with the buyer making an offer to purchase goods or property at a certain price, and the seller accepting that offer. This mutual agreement is the foundation of the contract.

Agreement on Essential Terms: The contract should specify the essential terms, including the description of the goods or property, the price, payment terms, and any other relevant details.

Intention to Create Legal Relations: Both parties must have a genuine intention to create a legally binding contract.

Capacity and Legality: Both the buyer and seller must have the legal capacity to enter into the contract, and the subject matter of the contract must be legal.

Consideration: Consideration refers to the price or something of value that each party gives or promises to give in exchange for the goods or property.

Transfer of Ownership: The contract should outline when and how ownership of the goods or property will transfer from the seller to the buyer.

Delivery: The contract should specify the terms and conditions of delivery, including the location and method of delivery.

Title and Risk: The contract should determine when the title to the goods or property passes from the seller to the buyer and when the risk of loss or damage is transferred.

Warranties and Representations: The contract may include warranties or representations made by the seller regarding the quality, condition, or characteristics of the goods or property.

Performance and Obligations: The contract should outline the obligations of both parties, including any warranties, inspections, or other performance requirements.

Remedies for Breach: The contract should specify the remedies available to both parties in case of a breach, which may include damages, specific performance, or other legal remedies.

Terms and Conditions: Any additional terms and conditions, such as dispute resolution mechanisms, should be clearly defined in the contract.

Signatures: The contract should be signed by both parties to indicate their agreement.

It's important to note that contract law can be complex, and the specific rules and requirements may vary depending on your jurisdiction and the nature of the goods or property being sold. Therefore, it's advisable to consult with a legal professional when drafting or entering into a contract of sale to ensure it complies with local laws and regulations.