Unit 1 Formation of contract of sale

• Seller


  A person who sells or agrees to sell goods
• Buyer


  A person who buys or agrees to buy goods
• Goods


  Every kind of movable property, including stock and shares, growing crops, grass, and things attached to or forming part of land, which are agreed to be severed before sale or under the contract of sale
• Classification of goods


  • Existing goods
  • Specific goods
  • Unascertained goods
  • Future goods
  • Contingent goods
• Existing goods


  Specific goods - Goods identified and agreed upon at the time a contract of sale is made<|>Ascertained goods - Goods identified in accordance with the agreement after the contract of sale is made<|>Unascertained goods - Goods not specifically identified on the making of the contract
• Future goods


  Goods to be manufactured, produced, or acquired by the seller after making the contract of sale
• Contingent goods


  Goods the acquisition of which depends upon an uncertain event
• Delivery


  Voluntary transfer of possession from one person to another
• Types of delivery


  • Actual delivery
  • Constructive delivery
  • Symbolic delivery
• Document of title to goods

  A document proving the possession or control of goods, or authorising the transfer of goods by delivery, endorsement or delivery
• Property


  Ownership in goods, not merely a special property
• Price


  The value in monetary terms to be paid for the goods
• Contract of sale of goods

  A contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price
• Sale


  A contract of sale where the property in the goods is transferred from the seller to the buyer
• Agreement to sell


  A contract where the transfer of property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled
• Elements of a contract of sale

  • Buyer and seller
  • Consideration - price in money
  • Nature of contract - absolute or conditional
  • Subject matter - movable goods
  • Delivery of goods
  • Transfer of ownership