Question

Explain in detail the elements of Contract of sale.

Answer 1

The sale means selling the ownership of the goods to the buyer for a price. Similarly, the purchase means buying the ownership of the goods from the seller for a price.

Following essential elements are necessary for a contract of sale:

1. Two Parties: A contract of sale involves two parties – the seller and the buyer. The buyer and the seller should be two different persons.
2. Transfer of Property: To constitute a sale, the seller must transfer or agree to transfer the ownership of the goods to the buyer.
3. Goods: The subject matter of the contract of sale must be goods. It excludes money, actionable claims and immovable property.
4. Price: The monetary consideration for the goods sold is called price.