C h a r a c t e r i s t i c s

o f C o nt r a c t
o f Sale
 1
Wherein mere consent is

Consensua sufficient to perfect such

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contract.
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 Wherein both parties are
2
mutually bound to each other;
the seller delivers the thing
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sold, while the buyer pays the
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price
 3
Wherein the thing sold is

Commutativ considered the equivalent of

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the price sold.
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 4 Wherein the existence
and validity of such
Principa contract
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Effort not

l depend on other contract.

 Wherein one party performs
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his obligation with the

Onerou expectation that the other

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party will
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s obligation in return.
 6
Wherein the civil code gives

Nominat special designation to such

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contract.
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FORMS OF A
CONTRA
VA LID CT OF
SA LE
Contract
The word contract means an agreement enforceable by law.
All the essential of a valid contract like capacity of parties,
free consent, legality of object, etc. should also be present in
a contract of sale. It may be verbal or in writing. It may be
express or implied.
 Two
Parties
There should be two parties to a contract of sale, a buyer and seller. One
person cannot act as a buyer and seller because a person cannot buy his
own goods and similarly a person cannot sell his goods to himself.
However, an owner of a one part can sell his share to the owner of other
part. Similarly, a partner may buy the goods from the firm in which he is a
partner and vice- versa. Example: A sells his computer to B for P40,000. A is
seller and B is buyer.
 Transfer of
Property
Transfer of property is another essential of contract of sale. Property
here means ownership. A mere transfer of possession of the goods
cannot be termed as a sale. To constitute a contract of sale the seller
must either transfer or agree to transfer the property (ownership) in the
goods to the buyer. Example: “A” sells his car to “B” for Rs 8,000,000.
The ownership and possession of the car will be transfer from “A” to
“B”.
Good
sGoods means every kind of movable property other than actionable claims and
money; and includes electricity, water, gas, stock and shares, growing crops, car
etc. Every movable property is regarded as goods. The trees, fruits etc. are
regarded as goods because they can be separated from land. An actionable claim
means a debt or a claim for money which a person may have against another
and which can be recovered by filing a suit. Money is not regarded as goods.
However, old coins are treated as goods.
 Pr ic
eThe consideration in a contract of sale must be the price. When
goods are sold or exchanged for other goods, the transaction is
barter, and not a contract of sale of goods. If goods are sold partly
for goods and partly for money, the contract is sale. Example: A sell
his Car to M for 3 lac. It is a contract of sale because here the
subject matter is car which is moveable thing.
Sale and Agreement to sell

The term contract of sale includes both sale and an agreement to sell. When the
property in the goods is transferred from the seller to the buyer at the time of
formation of contract, the contract is called a sale. Where under a contract of sale the
transfer of
ownership in the goods is to be transferred from seller to buyer at some future date,
the contract is called an agreement to sell. Example: “A” buys a book from “S” and
pays the
entire price on a counter and received the goods, it’s a sale. “A” agree to buy “B’s” car
for 2 lac, but deliver will be take placed after a month, it’s a agreement to sale.
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