Professional Documents
Culture Documents
Seller/Vendor
Buyer/Purchaser
ESSENTIALS OF CONTRACT OF SALE
At least two parties
Agreement between the two parties
Subject matter of the contract must be “goods”
There must be transfer of subject matter from seller
to buyer
Lawful consideration Price -(money)
Essentials elements of valid contract
GOODS-MEANING DEFINITION AND KINDS
Goods– every kind of movable property other than
actionable claims and money
(includes stock and shares, growing crops, grass and
things attached to or forming part of the land)
Kinds of goods
Existing goods---specific goods and unascertained
goods
Future goods
Contingent goods
KINDS OF GOODS
Existing goods----owned and possessed by the seller at
the time of making a contract of sale
(For e g.. A sells 10 bags of rice which is lying in his
godown)
In case goods are destroyed , loss is Loss falls on the seller even though
borne by the buyer even though goods the goods are in possession of the
are in possession of the seller buyer
HIRE PURCHASE
Governed by Hire purchase Act 1972.
In this case the pledgee retains the possession of the goods until
the pledgor (i.e. borrower) repays the entire debt amount.
Condition—essential, Warranty---necessary
Exceptions
Implied conditions as to quality and fitness
Implied conditions as to Merchantability
RIGHTS OF UNPAID SELLER
Right against the goods
By Ratification