Sociology | Mercantile Law | International Law | International Relations

Under Section#4(1) of Sale of Goods Act, “A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to buyer for a price.”

Essentials to Contract of Sale
From the definition of ‘Sale’ mentioned above, we draw a list of its essentials;

Two Parties
There must have been two different persons or parties known as buyer and the seller. One person cannot sale and buys from himself.

Saleable Property in Goods
The property must be saleable which better is to be in goods. As far as ‘Goods’ are concerned, that may include every movable property other than actionable claims and money; even electricity, water, gas, stock and shares, growing crops are included in movable property.

Transfer of Goods
The seller must have transferred the possession of the goods sold to the buyer.

Reception of Price
The buyer must have paid the seller for the goods he bought from him.