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