1. PRESTIGE INSTITUTE OF
MANAGEMENT
Presentation
on
Contract of sale
Presented to:-
Prof. Richa Banerjee
Presented by:-
Radhika Shandilya
Annie Jetwani
Ritu Agarwal
2. Contract of Sale
Section 4 (1) of the Sale of Goods Act, 1930 defines the term
as a 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
3. Essentials of Contract of Sale
There must be at least two parties
The subject matter of the contract must necessarily be
goods
A price in money (not in kind) should be paid or
promised
A transfer of property in goods from seller to the buyer
must take place
A contract of sale must be absolute or conditional
All other essential element of a valid contract must be
4. Characteristics……
•Buyer and seller:-The person who buys the goods or makes
an agreement to buy is called the buyer. & the person who sells the
goods or makes an agreement to sell is called the seller
•Goods:- The subject matter of the contract of the sale is
essential the goods are movable property other than the actionable
claim and money
• Price:- Goods are always sold for a price
•Transfer of ownership:- The transfer of ownership can be
at the time of making the contract or it can be at future date
5. Sale:- Acc. to Section 4(3) of the Sale of Goods Act, 1930 as- “where under a
contract of sale the property in the goods is transferred from the seller to the buyer
Agreement to Sell:- Acc. To section 4(3) of the Sale of Goods Act,1930
where under the 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
6. Diff. between Sale & Agreement to Sale
Basic of diff. Sale Agreement to sell
Transfer of ownership The ownership of The ownership of
goods is transferred to goods is not
the buyer at the time transferred to the
of contract is made buyer at the time of
contract but later
Right of usage The buyer has the It is only a contract
rights to use the goods b/w the buyer, it is
he buys done only the goods is
transferred
Consequences of The seller can sue the Seller can sue only for
breach buyer for payment damages
Risk of loss Any loss against the Any loss against the
goods is bear by buyer goods is bear by seller
7. Contract of sale v/s other
contract
Sale v/s barter:- when goods are exchanged for
goods is known as barter deal. A sale implies reimbursement
for goods sold in terms of money, so in this case barter deal is
not a sale
Sale v/s gift:- in case of gift the transfer of ownership
does not involve any kind of expense
Sale v/s bailment:- the buyer acquires the
possession of goods from the seller but does not become the
lawful owner of the goods, in bailment one person is the
bailor who give the possession of the goods to another for a
specific objective, after fulfill the objective the bailee is bound
to return the goods back to bailor
8. Types of goods…
Goods
Future goods Contingent
Existing goods
goods
Specific Generic
goods goods
9. Existing goods:- These are those goods that are owned
by seller at the time of making the contract
- Specific goods:- These are those goods that are
identified by both the parties
- Generic goods:-Existing goods that have not been
specifically identified by the parties
Future goods:- Goods that are not in the possession of
the seller at the time of the contract
Contingent goods:- These are same future goods, the
acquisition of which by the seller is dependent on a
contingency which may or may not happen
