| MEANINGWhere the right of ownership in
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| | B.2. Price - The consideration for sale
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| the goods is transferred from the seller
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| | of goods must be money called as price.
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| to the buyer the contract is called a
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| | The term price has been defined as money
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| sale.
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| | consideration for a sale of goods. The
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| For example: n 1st August X sells 5 bags
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| | presence of money consideration is an
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| of sugar to Y for a sum of Rs.1000/-.
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| | essential element in a transaction of
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| This transaction if called a sale since
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| | sale. If goods are exchanged for goods
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| the ownership of 5 bags of sugar is
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| | the transaction is not a sale, but it
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| transferred from X to Y.
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| | would only be an exchange or barter.
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| WHAT IS MEANT BY AN AGREEMENT TO SELL?
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| | Likewise if money is exchanged for money,
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| Where the transfer of ownership in the
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| | it is an exchange and not a sale. On the
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| goods is to take place at a future time
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| | other hand where goods are exchanged
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| or subject to some conditions there after
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| | partly for goods and partly for money, it
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| to be fulfilled the contract is called an
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| | is a sale.3. Subject matter of sale - The
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| agreement to sell.
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| | subject matter of sale must only be
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| For example: On 1st August X and Y agree
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| | movable properties and not immovable
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| that X should sell 5 bags of sugar to Y
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| | properties like land and house.
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| on 15th August for a sum of Rs.1000/-.
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| | Transactions involving purchase and sale
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| It is an agreement to sell, since X
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| | of immovable property are regulated by a
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| agrees to transfer ownership of the 5
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| | separate Act called the Transfer of
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| bags of sugar to Y in future on the 15th.
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| | Property Act, 1882.4. Transfer of
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| In other words, the date of agreement is
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| | ownership - The transfer of ownership
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| 1st August. But actual sale would take
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| | from the seller to the buyer is the most
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| place only on 15th August.ESSENTIAL
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| | important ingredient in contract of sale.
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| ELEMENTS OF SALEFollowing essential
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| | It is this element which distinguishes a
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| elements are necessary to constitute a
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| | sale from several other calluses of
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| sale.1. Existence of two persons namely
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| | contract like bailment, lease. Hence in
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| buyer and seller - The sale requires the
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| | a sale, ownership must be transferred
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| existence of two person namely, the
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| | from the seller to the buyer.5. Presence
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| seller and the buyer. The seller is a
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| | of essential elements of a valid contract
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| person who sells or agrees to sell goods.
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| | - All the essential elements of a valid
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| The buyer is a person who buys or agrees
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| | contract must be present.FORMATION OF A
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| to buy foods. Both the seller and the
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| | CONTRACT OF SALEJust as every contract is
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| purchaser must be competent to enter into
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| | formed by an offer and acceptance and has
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| a contract, since the transaction of sale
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| | to be supported by consideration the
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| involves two persons namely, a seller and
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| | contract of sale also, is made by an
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| a buyer. It necessarily follows that the
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| | offer to buy or sell goods for money
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| same person cannot be both a seller and a
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| | consideration, which is known as the
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| purchaser. But it is however definitely
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| | price. In other words it must satisfy
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| stated that a joint owner of goods can
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| | all the essentials of a valid contract as
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| sell the same to the other owner. For
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| | laid down. It may be in oral or in
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| example - a transistor belongs to A and B
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| | writing.But in the English law, a
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| jointly. In this case, A is a joint
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| | contract of sale of goods must be
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| owner and B is another joint owner. Now
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| | evidenced by a memorandum in writing if
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| A can sell his part of ownership to
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| | the value thereof exceeds 10 pounds.
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