CPT Chapter Formation of Contract of Sale

With Bharat Gelani.Duration:4hrs 01min 

Notes

Index

Contract of Sale
Goods, types of Goods & other definitions
Sale vs Agreement to Sell
Formalities of Contract of Sale
Delivery
Document of Title
Contract similar to sales

Contract of Sale

“a contract of a sale of goods is a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for a price”
Essentials Contract of Sales
At least two parties
goods
money(not in kind- No barter) -paid or promised
Transfer of Property
Absolute or Conditional
Other Elements of Valid Contract

Formalities of Contract of Sale

(i) immediate delivery; or
(ii) immediate payment of price, delivery at future date; or
(iii) immediate delivery & immediate payment of price; or
(iv) delivery or payment or both in instalments; or
(v) delivery or payment or both at some future date.

Subject matter of Contract of Sales

(1) must always be goods
(2) May be contingent contracts.
(3) Sale of Future Goods = Agreement to sell and not sale

Destruction of Goods

Destroyed before the contract of sale – Void Contract – Risk with seller
Destroyed after the contract of sale – Valid contract – Risk with buyer

Price of Goods

Monetary consideration (not barter)
Price may be fixed :
Mutually by the parties ex- Purchase of furniture
As per manner provided in contract ex- cost+profit-commission
By Third party - Valuer
Trade usage or course of dealing

Notes:-
1. When not Fixed - resonable price (fact)
2. Third party fails to determine value – Contract becomes Void ,
3. Third party is prevented – default - party liable for damages
4. Goods Delivered – Price not ascertained - buyer pays reasonable price

CPT Exam Exposure

Take Quiz

Conditions and Warranties

Contingent and Quasi Contract

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