CHAPTER II FORMATION OF THE CONTRACT · Contract of sale

Section 4: Sale and agreement to sell

The Sale of Goods Act, 1930

(1) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another.

(2) A contract of sale may be absolute or conditional.

(3) Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell.

(4) An agreement to, sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred.

Questions on this section

1 question in 7 of our papers cite Section 4. Try these from the free papers:

1. Consider the following statements under Section 4 of the Sale of Goods Act, 1930: 1. There may be a contract of sale between one part-owner and another. 2. A contract of sale may be absolute or conditional. 3. Where the transfer of the property in the goods is to take place at a future time, the contract is called a sale. 4. An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property is to be transferred. Which of the statements given above is/are correct?

Practise questions on Partnership and Sale of Goods Acts