Coupon Accepted Successfully!


Meaning of Contract of Sale

The term ‘contract of sale’ is defined in Section 4(1) of the Sale of Goods Act, which reads as under:
“A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for a price”.
The analysis of this section reveals that a contract to transfer property in the goods (i.e. legal ownership of the goods) is known as a contract of sale. The ownership of the goods is transferred from the seller to the buyer for a price. The term ‘contract of sale’ is a generic term and it includes both ‘sale’ as well as an ‘agreement to sell’

Test Your Skills Now!
Take a Quiz now
Reviewer Name