Sales of Goods

Everyone at one point or the other, has or will enter a contract of sales of good. It is regarded as a commercial transaction because it involves exchange of the goods with a valued price of money.

What is 'goods'? Goods means 'every kind of movable property other than actionable claims(e.g suing another person for a debt or for any other reason) and money; it includes stocks and shares, growing crops, grass and thing attached to or forming part of land which are agreed to be severed before sale or under the contract of sale'. Note that LAND is not part of sale of good.

Goods could either be existing or future goods. Existing goods are goods already owned or possessed by the by the seller, and may be either specified or agreed upon at the time a contract of sale is made. Future goods means goods to be manufactured or produced or acquired by the seller after the making of the contract of sale.

The contract of sale of goods is 'a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price'. This means that a sale occurs when the ownership in goods passes to the buyer. A sale is different from agreement to sell, an agreement to sell is a contract in which the transfer of the goods is to take place at a future time or subject to some conditions which are yet to be fulfilled.

Formation of the Contract: this is made by an offer to buy or sell goods at a particular price and the acceptance of such an offer. that is the buyer must agree to the price that the seller is offering his/her goods. Both the sell and the buyer might also agree upon the delivery method and payment method if it would be an immediate, full payment, or instalments. The formalities of the contract of sale may be made in writing and partly by word of mouth, or partly in writing and partly by word of mouth.