Sale of Goods Act Quiz

Like other contracts, a contract of sale of goods results from an offer by one party and its acceptance by the other. The parties are free to decide the terms and conditions of performance of their contract. Where the contract is silent, rules provided by the Sale of Goods Act apply to the relevant issue. Section 4(1) of the Sale of Goods Act, 1930, defines a contract of sale of goods as a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. In simple words, a contract of sale of goods is a contract whereby a seller transfers the ownership in goods to the buyer or agrees to transfer it to the buyer for a price. Essentials of a Contract of Sale: A brief explanation of these elements is as follows: (1) Contract: The word contract means an agreement enforceable at law. Thus, all essential elements of a valid contract must be present in the transaction. Although the existence of consideration is must in a contract of sale like any other contract.