Sales of Goods Act Exam Capsule – CA Foundation Quiz

Nature of Contract in a Sale

• A sale constitutes a legal agreement where ownership of goods is transferred from the seller to the buyer for a price.
• It involves essential elements including offer, acceptance, consideration, and capacity of parties.

Burden of Risk in Case of Destruction of Goods

• The burden of risk typically rests with the seller until ownership is transferred to the buyer.
• If goods are destroyed before the transfer of ownership, the seller usually bears the loss.

Type of Contract for Agreement to Sell

• An agreement to sell is classified as a conditional contract, meaning ownership is not transferred immediately.
• It represents a promise to sell at a future date, subject to certain conditions being met.

Remedies for Breach in an Agreement to Sell

• Remedies available for breach include damages, specific performance, and termination of the agreement.
• The injured party may seek compensation for losses incurred due to the breach.

Seller's Right to Resell Goods in a Sale

• Once a sale is completed, the seller generally loses the right to resell the goods.
• If the sale has not occurred (as in an agreement to sell), the seller may retain the right to resell if certain conditions allow for it.