Sale of goods act and related provisions for entrepreneurs
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3. What is sale ? Read sec. (4) : when seller transfers or agrees to transfer the property in goods, to the buyer, for money / consideration / price.
4. What are the essentials of a sale ? Bilateral contract: there must be 2 parties Transfer of property: The object of a contract of sale must be the transfer of property (meaning ownership) in goods from one person to another. Goods: The subject matter must be some goods. Price / money / consideration: The goods must be sold for some price, where the goods are exchanged for goods it is barter, not sale. All essential elements of a valid contract must be present in a contract of sale.
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6. What is goods ? Section 2(7) of the Sale of Goods Act: - “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.