Business Law - Formation of the Contract of Sale

Chapter 2: The Sale of Goods Act, 1930UNIT -1: FORMATION OF THE CONTRACT OF SALEAfter studying this unit, you would be able to understand- 1. Scope of the Act 2. Definitions of certain terms. 3. Meaning of contract of sale. 4. Distinctions of sale from other similar contracts. 5. Formalities of contract of sale. 6. Subject matter of contract of sale. 7. Ascertainment of price for the contract of sale.INTRODUCTIONSale of goods is one of the specific forms of contracts recognized and regulated by law in India. Sale is a typical bargain between the buyer and the seller. The Sale of Goods Act, 1930 allows the parties to modify the provisions of the law by express stipulations. However, in some cases, this freedom is severely restricted. Sale of Goods Act, 1930 is an Act to define and amend the law relating to the sale of goods. It extends to the whole of India. It came into force on 1st July, 1930.SUMMARYIn nutshell, contract of sale of goods is a contract where the seller transfers or agrees to transfer the property in goods to the buyer for a price. Where, however, the transfer of property in goods is to take place at a future date or subject to some conditions to be fulfilled, the contract is called ‘agreement to sell’. The subject matter of such contract must always be goods. Price for goods may be fixed by the contract or may be agreed to be fixed later on in a specific manner.CONTENTS1. Sale and Agreemental Sale2. Sale and Hire Purchase Agreement3. Sale and Contract for Work and Labour4. Sale and Bailment5. Types of Good6. Determination of Price