Introduction of contract of sale of goods.

1. CONTRACT OF SALE
OF GOODS
Ashish jain
2773

2. Before Sale of Goods Act, all the
transactions related to sales and
purchase of goods were regulated
by The Indian Contract Act, 1872
In 1930, Indian Sales of Goods Act
was passed
In 1963, the word “Indian” was
removed and the act is now called
The Sales of Goods Act, 1930

3. This act is applicable to whole of India
except

4. Contract of sale of goods is a contract
whereby the seller transfers or agrees
to transfer the property in goods to the
buyer for a price
GOODS
PRICE
SELLER BUYER

5. Formation of contract
Contract
of sale
Conditions
and
warranties
Price
Subject
matter

6. - Ownership is transferred -ownership is transferred
immediately. on a future date.
- It’s an executed contract - It’s an executory contract
- Risk is transferred to - Risk still lies with seller
the buyer
Contract of
sale
Agreement to
saleSale

7. A B
Rs.50000
It’s a SALE since ownership is transferred immediately

8. X Y
Sell on 15th Nov for
Rs.10 Lakhs
Its an AGREEMENT TO SALE since ownership
will be transferred on a future date.

9. Essentials of a valid contract
1.There must be Two parties
-one buyer and the other seller
2.Subject matter of sale must be “goods”
-they must be movable goods
3.Transfer of goods from seller to buyer
should be for consideration
4. Contract can be absolute or conditional

10. Subject matter of contract of sale
GOODS
Includes: Any kind of movable property
stocks and shares
growing crops and grass
Goodwill, trademarks, patents
Old and rare coins
Excludes :Actionable claims like debtors
Money

11. GOODS
CONTINGENT
GOODS
FUTURE
GOODS
EXISTING
GOODS
Goods which are Goods which a Goods whose
in existence at seller does not acquisition
the time of contract possess at the depends upon
time of contract a contingency

12. P contracts to sell 50 pieces of a particular article provided
the ship which is bringing them reaches the port safely.
This is an agreement for the sale of Contingent
Goods.

13. Documents of Title to Goods
It’s a proof of possession and control of
goods.
The term documents of title consists of:
- Bill of lading
- Dock warrant
- Warehouse keeper’s certificate
- Delivery order
- Railway receipt, etc.

14. PRICE
Price is the monetary consideration for
sale of goods.
Price may be:
Fixed by the contract
Agreed to be fixed in a manner provided by the contract
Determined by the course of dealings between the parties
Where price is not fixed, buyer is bound to pay
reasonable price to the seller

15. THANK YOU