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Section one

sale of goods contracts


1- Definition
The sale is the contact by which the seller is obliged to transfer the property of things to
the buyer for a price of which is sum certain of money(article 418 civil code)
2- The formation of the contract
the general rules of forming a contract in civil law are applied on the forming of sale of
goods contract. It means that an offer must be existed and an acceptance responded to
that offer. the parties of the contract are the seller and the buyer. we can say that
according to the Egyptian trade code a sale of goods contract may be made in any
manner sufficient to show agreement, including conduct by both parties which
recognizes the existence of such contract.
3- The effect of the contract
the contract of sale of goods produces many effects as to the seller and the buyer
i. the effect of the contract as to the seller
the contract produces many effects as to the seller. These effect are the
transfer of property, deliver the goods and guaranty.
1- Transferring the property
the legislator provided in article 418 of civil law that the seller is obliged to
transfer the property of goods to the buyer . the source of seller's
obligation is the sale contract. The property passes immediately to the
buyer upon the bargain being made if the goods are specific. If the goods is
generic, the property does not be transferred until there has been some
kind of identification of the goods. this identification comes through the
description of the goods
2- Delivering the goods
the delivery of goods is the most vital obligation on the seller . the great
important duty of the seller is the delivery of contracted goods. The
delivery means the voluntary transfer of possession. And the legislator is
concerned to regulate the time, place and manner of delivery .
1- The time of delivery
it is well settled that the time is essence of the delivery . the general rule is contract that
fixed the time of delivery. we know the contract is the source of the rule that control
the parties. so, if the time for delivery is fixed by the contract, then failure to deliver at
that time will thus be a breach of condition.
2- Place of delivery
place of delivery is a question depending, in each case on the contract between the
parties. The rule is the place of delivery is the seller's place of business. if he has one
and if not his residence. thus in the absence of contrary intention it is the duty of the
buyer to collect the goods

We can say that the delivery may take one of the following forms:
a- There may be a physical transfer of the actual goods themselves.
b- The seller may transfer possession to the buyer by handing over to him the means of
control over the goods
c- If the goods at the time of sale are in the possession of a third person
d- The goods may be delivered by the delivery of document of title
3- The quantity of delivered goods
the seller must send to the buyer the right quantity of goods where the seller delivers to
the buyer a quantity of goods larger or smaller than contracted to sell , he cannot get
back the surplus amount otherwise the buyer refuses to pay the price during fifteen
days from the date of the buyer's notice to him of excess quantity.
4- The quality of delivered goods
the goods must correspond with their description mentioned in the contract or
mentioned according to the contract
3- Guarantee obligation:
The third obligation is the guarantee of the goods. The obligation of the
seller does not stop at the transfer of property and delivery the goods. but
it extends to the limits which make the buyer enable to use the goods.
ii. The effects of the contract as to the buyer
there are two essential obligations on the buyer shoulders have to be done ;
firstly pay the price , secondly take delivery
1- The duty to pay the price
It is the duty of the buyer to pay the price of the goods he has bought.
In the absence of a contrary agreement he is not entitled to claim
possession of the goods unless he is ready to pay the price in
accordance with contract .
if no time is fixed for payment the price is due on the conclusion of the
contract if the buyer fails to pay the price on the day fixed , the seller
has the right to resell the goods to others
2- The duty to take delivery :
the general rule is that the buyer has to take delivery of the goods from
the seller of business , and not for the seller to send goods to the buyer

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