Essential elements of contract of sale?

Answer 1

consent, object , consideration

Answer 2

1. Two parties:

The first essential is that there must be two distinct parties to a contract of sale, viz., a buyer and a seller, as a person cannot buy his own goods. However, there may be a contract of sale between one part-owner and another, e.g., if A and B jointly own a computer, A may sell his ownership in the computer to B, thereby making B sole owner of the goods [Sec. 4(1)]. Similarly, a partner may buy the goods from the firm in which he is a partner and vice-versa.

2. Transfer of property:

'Property' here means 'ownership'. Transfer of property in the goods is another essential of a contract of sale of goods. A mere transfer of possession of the goods cannot be termed as sale. To constitute a contract of sale the seller must either transfer or agree to transfer the property in the goods to the buyer.

3. Goods:

The subject-matter of the contract of sale must be 'goods'. According to Section 2(7), "goods means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale."

Thus every kind of movable property except actionable claim and money is regarded as 'goods'. Goodwill, trademarks, copyrights, patents right, water, gas, electricity, decree of a court of law, are all regarded as goods. Shares and stock are also included in goods.

'Actionable claims' means claims which can be enforced by a legal action or a suit, e.g., a book debt (i.e., a debt evidenced by an entry by the creditor in his Account Book or Bahi). A book debt is not goods because it can only be assigned as per the Transfer of Property Act but cannot be sold.

'Money' means current money:

It is not regarded goods because it is the medium of exchange through which goods can be bought. Old and rare coins, however, may be treated as goods and sold as such.

It may be mentioned that sale of immovable property is governed by the Transfer of Property Act, 1882.

4. Price:

The consideration for a contract of sale must be money consideration called the 'price.' If goods are sold or exchanged for other goods, the transaction is barter, governed by the Transfer of Property Act and not a sale of goods under this Act. But if goods are sold partly for goods and partly for money, the contract is one of sale (Aldridge vs Johnson).

5. Includes both a 'sale' and 'an agreement to sell:

The term 'contract of sale' is a generic term and includes both a 'sale' and an 'agreement to sell' [as is clear from the definition of the term as per Section 4(1) given earlier)].

Sale. Where under a contract of sale the property in the goods is immediately transferred at the time of making the contract from the seller to the buyer, the contract is called a 'sale' [Sec. 4(3)]. It refers to an 'absolute sale', e.g., an outright sale on a counter in a shop.

There is immediate conveyance of the ownership and mostly of the subject-matter of the sale as well (delivery may also be given in future). It is an executed contract.

An agreement to sell:

Where under a contract of sale the transfer of property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called 'an agreement to sell' [Sec. 4(3)]. It is an executory contract and refers to a conditional sale.

Answer 3

- A genuine intention to create and be bound by a contract - The contract being for a lawful purpose and not being contrary to public policy - An offer to buy or sell something - The acceptance of the offer - Consideration for the purchase or sale

Answer 4

from the section 4 of sale of goods act, we can understand that the following four elements are essential for a valid contract of sale:-

1.there must be two parties

2.subject matter of sale must be goods

3.transfer of property in goods

4.consideration in price.

Answer 5

That depends on several factors. Sales of goods (products movable upon delivery) are governed by the Uniform Commercial Code (UCC) in practically all jurisdictions in the United States. Assuming that you are speaking about a contract for sale, the required elements are an offer, clear and certain in its terms including an objective intention to be bound by the promisor, and an acceptance of a mirror image of the promise, as well as consideration for the promise. Under the UCC, parties forming a contract have a duty to negotiate in good faith so terms can be added and taken out without consideration; however for the initial bargain there must be a consideration. Consideration is a bargained for exchange between the parties. Essentially it means a promise for a promise where each party takes a detriment in exchange for a benefit from the opposing party. An simple example of this can be expressed in a sale of Baseball cards. I offer to sell you my deck of baseball cards for $400.00. You accept my offer. The consideration for the sale is that I take the detriment of losing my baseball cards in exchange for the benefit of your $400.00. You take the detriment of losing $400.00 in exchange for the benefit of my baseball cards. Contracts for sale can also be governed under the Statute of Frauds. Sales for goods over $500.00 must be evidenced by a writing signed by the party to be charged. Note, this does not mean the contract for sale must be in writing, there just must be a written documentation of the agreement that lists the terms that may be traced back to the other party. A receipt will do nicely.

Essentially:

Offer

Acceptance

Consideration

Answer 6

a. Offer

b. Acceptance

c. Legal consideration

d. Intention to form a legal contract

Answer 7

1. Consent

2. Object certain

3. Cause

Answer 8

consent, object , consideration