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Law: consumer Protection (Sales of Good Act ) - Essay Example

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A Contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer of consideration, called price. A contract of sale may be made in writing or by a word of mouth, or partly in writing and partly by word of mouth. It…
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Law: consumer Protection (Sales of Good Act )
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Download file to see previous pages An agreement to sell becomes a sale when the time elapses or the conditions, subject to which the property in the goods is to be transferred, are fulfilled.
Transfer of property sold for a price is the linchpin of the definition of contract of sale. “Property” means the general property in goods and not merely a special property. In other words, it means “the right of ownership”, when we say that the property in goods has passed from the seller to the buyer, it means that the seller ceases to be, and the buyer becomes the owner of the goods.
‘Goods’ form the subject-matter of a contract of sale. Goods means every kind of movable property other than actionable claims and money and includes stocks and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of the sale. Trademarks, copyrights, patent rights, goodwill, electricity, water, gas are all considered goods.
Actionable claims and money are not goods. Subject to the Transfer of Property Act [1882], an actionable claim means a claim to any debt or any beneficial interest in movable property not in possession. A debt due from one person to another is an actionable claim and cannot be bought or sold as goods.
The goods which form the subject-matter of a contract of sale may be either existing or future goods. Existing goods are the goods which are owned and possessed by the seller at the time of the sale. The ‘price’ in a contract of a sale forms an essential part of the contract. It means the consideration for the transfer or agreement to transfer the property in goods from the seller to the buyer. It is not essential that the price should be fixed at the time of sale. It must, however, be payable, though it may not have been fixed.
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