to the other owner. For example – a transistor belongs to A and B jointly. In this case, A is a joint owner and B is another joint owner. Now A can sell his part of ownership to B.

2. Price – The consideration for sale of goods must be money called as price. The term price has been defined as money consideration for a sale of goods. The presence of money consideration is an ess

MEANING

Where the right of ownership in the goods is transferred from the seller to the buyer the contract is called a sale. For example: n 1st August X sells 5 bags of sugar to Y for a sum of Rs.1000/-. This transaction if called a sale since the ownership of 5 bags of sugar is transferred from X to Y. WHAT IS MEANT BY AN AGREEMENT TO SELL? Where the transfer of ownership in the goods is to take place at a future time or subject to some conditions there after to be fulfilled the contract is called an agreement to sell. For example: On 1st August X and Y agree that X should sell 5 bags of sugar to Y on 15th August for a sum of Rs.1000/-. It is an agreement to sell, since X agrees to transfer ownership of the 5 bags of sugar to Y in future on the 15th. In other words, the date of agreement is 1st August. But actual sale would take place only on 15th August.

ESSENTIAL ELEMENTS OF SALE

Following essential elements are necessary to constitute a sale.

1. Existence of two persons namely buyer and seller – The sale requires the existence of two person namely, the seller and the buyer. The seller is a person who sells or agrees to sell goods. The buyer is a person who buys or agrees to buy foods. Both the seller and the purchaser must be competent to enter into a contract, since the transaction of sale involves two persons namely, a seller and a buyer. It necessarily follows that the same person cannot be both a seller and a purchaser. But it is however definitely stated that a joint owner of goods can sell the same to the other owner. For example – a transistor belongs to A and B jointly. In this case, A is a joint owner and B is another joint owner. Now A can sell his part of ownership to B.

2. Price – The consideration for sale of goods must be money called as price. The term price has been defined as money consideration for a sale of goods. The presence of money consideration is an esse

goods is to take place at a future time or subject to some conditions there after to be fulfilled the contract is called an agreement to sell. For example: On 1st August X and Y agree that X should sell 5 bags of sugar to Y on 15th August for a sum of Rs.1000/-. It is an agreement to sell, since X agrees to transfer ownership of the 5 bags of sugar to Y in future on the 15th. In other words, the date of agreement is 1st August. But actual sale would take place only on 15th August.

ESSENTIAL ELEMENTS OF SALE

Following essential elements are necessary to constitute a sale.

1. Existence of two persons namely buyer and seller – The sale requires the existence of two person namely, the seller and the buyer. The seller is a person who sells or agrees to sell goods. The buyer is a person who buys or agrees to buy foods. Both the seller and the purchaser must be competent to enter into a contract, since the transaction of sale involves two persons namely, a seller and a buyer. It necessarily follows that the same person cannot be both a seller and a purchaser. But it is however definitely stated that a joint owner of goods can sell the same to the other owner. For example – a transistor belongs to A and B jointly. In this case, A is a joint owner and B is another joint owner. Now A can sell his part of ownership to B.

2. Price – The consideration for sale of goods must be money called as price. The term price has been defined as money consideration for a sale of goods. The presence of money consideration is an ess

ords, the date of agreement is 1st August. But actual sale would take place only on 15th August.

ESSENTIAL ELEMENTS OF SALE

Following essential elements are necessary to constitute a sale.

1. Existence of two persons namely buyer and seller – The sale requires the existence of two person namely, the seller and the buyer. The seller is a person who sells or agrees to sell goods. The buyer is a person who buys or agrees to buy foods. Both the seller and the purchaser must be competent to enter into a contract, since the transaction of sale involves two persons namely, a seller and a buyer. It necessarily follows that the same person cannot be both a seller and a purchaser. But it is however definitely stated that a joint owner of goods can sell the same to the other owner. For example – a transistor belongs to A and B jointly. In this case, A is a joint owner and B is another joint owner. Now A can sell his part of ownership to B.

2. Price – The consideration for sale of goods must be money called as price. The term price has been defined as money consideration for a sale of goods. The presence of money consideration is an ess

l goods. The buyer is a person who buys or agrees to buy foods. Both the seller and the purchaser must be competent to enter into a contract, since the transaction of sale involves two persons namely, a seller and a buyer. It necessarily follows that the same person cannot be both a seller and a purchaser. But it is however definitely stated that a joint owner of goods can sell the same to the other owner. For example – a transistor belongs to A and B jointly. In this case, A is a joint owner and B is another joint owner. Now A can sell his part of ownership to B.

2. Price – The consideration for sale of goods must be money called as price. The term price has been defined as money consideration for a sale of goods. The presence of money consideration is an ess

to the other owner. For example – a transistor belongs to A and B jointly. In this case, A is a joint owner and B is another joint owner. Now A can sell his part of ownership to B.

2. Price – The consideration for sale of goods must be money called as price. The term price has been defined as money consideration for a sale of goods. The presence of money consideration is an essential element in a transaction of sale. If goods are exchanged for goods the transaction is not a sale, but it would only be an exchange or barter. Likewise if money is exchanged for money, it is an exchange and not a sale. On the other hand where goods are exchanged partly for goods and partly for money, it is a sale.

3. Subject matter of sale – The subject matter of sale must only be movable properties and not immovable properties like land and house. Transactions involving purchase and sale of immovable property are regulated by a separate Act called the Transfer of Property Act, 1882.

4. Transfer of ownership – The transfer of ownership from the seller to the buyer is the most important ingredient in contract of sale. It is this element which distinguishes a sale from several other calluses of contract like bailment, lease. Hence in a sale, ownership must be transferred from the seller to the buyer.

5. Presence of essential elements of a valid contract – All the essential elements of a valid contract must be present.

FORMATION OF A CONTRACT OF SALE

Just as every contract is formed by an offer and acceptance and has to be supported by consideration the contract of sale also, is made by an offer to buy or sell goods for money consideration, which is known as the price. In other words it must satisfy all the essentials of a valid contract as laid down. It may be in oral or in writing.

But in the English law, a contract of sale of goods must be evidenced by a memorandum in writing if the value thereof