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