Sale of Goods Act
The sale of Goods Act, 1930. The act came into force on 1 st July,1930. The Act of 1930 extends to the whole of India,expect Jammu & Kashmir. It deals with provisions related to passing of ownership of the goods from seller to buyer, duties of seller and buyer,rights of unpaid seller, remedies available to buyer if the goods are not delivered to him,etc.
Contract of Sale of Goods
The term contract of sale is a generic term and it includes both sale and agreement to swell. Where, under a contract of sale, the property in goods is transferred from the seller to the buyer, it is called a ‘sale’, but where the transfer of property in goods is to take place at a future time or subject to some conditions thereafter to be fulfilled, the contract is called ‘agreement to sell’ Section 4(1) of the Act 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 price.
Essentials of Contract of Sale
1. Two Parties: There are two distinct parties in a contract of sale-buyer and seller. Seller means a person who sells or agrees to sell goods and buyer means a person who buys or agrees to buy goods [Section 2(13)].
2. Transfer of general Property: ‘Property’ means the general property in goods, and not merely a special property [Section 2(11)]. In layman’s language, property means ownership and general property means full ownership. Thus, transfer of general property is required to constitute a sale. If goods are given for hire,lease,hire purchase or pledge, ‘general property’ is not transferred and hence it is not a ‘sale’.
3. Goods: Goods means every kind of movable property other than actionable claims and money, and include stock and shares, growing crops ,grass and thins attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. Transfer of immovable property is not regulated by the Sale of Goods Act.
4. Price: The consideration of the contract of sale must be in the form of money and is called price. The price may be either mentioned by the contract itself, or the manner of fixing the price is mentioned in the contract, or in certain cases if determined from the course of dealing between the parties.