Formation of contract of sale
Section 5 of Sale of Goods Act lays down the rules as to how a contract of sale may be made and has nothing to do with the transfer of property in goods. According to this section, a contract of sale is made by an offer to buy or sell by one person, and the acceptance of such offer by another person. And it may be made in any one of the following modes:
- There may be immediate delivery of goods, but the price may be paid at some future date
- There may be immediate payment of price, but the delivery may be made at some future date
- There may be immediate payment of price and the immediate delivery of goods
- The price and delivery of the goods may be postponed
- The price and delivery of the goods may be agreed to be made in installments.