Exercise Solutions Available
Step-by-step answers for all textbook questions in this chapter
Quick Summary
The Sale of Goods Act deals with transfer of ownership in goods for a price. The exam-heavy distinctions are sale vs agreement to sell and condition vs warranty.
Essentials of Contract of Sale
1. Two parties: buyer and seller 2. Goods as subject matter 3. Transfer of ownership 4. Price in money 5. Valid contract
Meaning of Goods
Goods include movable property other than actionable claims and money. They may be:
- existing goods
- future goods
- contingent goods
Sale vs Agreement to Sell
| Sale | Agreement to Sell |
|---|---|
| Ownership transfers immediately | Ownership transfers later |
| Executed contract | Executory contract |
| Buyer gets rights over goods | Buyer gets only contractual right |
| Risk generally passes with ownership | Risk usually remains with seller until ownership passes |
Condition vs Warranty
| Condition | Warranty |
|---|---|
| Essential to main purpose of contract | Collateral to main purpose |
| Breach may allow rejection of goods | Breach gives claim for damages |
| More serious term | Less serious term |
Duties of Seller and Buyer
Seller
- Deliver goods
- Transfer ownership
- Supply goods matching contract terms
Buyer
- Accept goods when conforming
- Pay the price
Important Questions
One Mark
1. Define contract of sale. 2. Name the two parties in a contract of sale. 3. What is future goods?
Short Answer
1. State any three essentials of contract of sale. 2. Distinguish between sale and agreement to sell. 3. Distinguish between condition and warranty.
Long Answer
1. Explain the essentials of contract of sale. 2. Explain types of goods. 3. Distinguish between sale and agreement to sell with suitable points.
Common Mistakes
- Writing that any transfer of goods is a sale, even without price.
- Confusing ownership transfer with possession.
- Treating condition and warranty as equal terms.
- Forgetting future goods in types of goods.
Revision Checklist
- [ ] Meaning and essentials
- [ ] Types of goods
- [ ] Sale vs agreement to sell
- [ ] Condition vs warranty
- [ ] Duties of buyer and seller