Formation of Contract of Sale (SOGA, 1930)

Question 1

Buyer

Answer 1

Person who buys or agrees to buy.

Question 2

Goods

Answer 2

Every kind of movable property other than actionable claims or money. Both tangible and intangible.

Question 3

Existing Goods

Answer 3

In existence at time of contract of sale (owned or possessed by the seller at t.o.c.s.)

Question 4

Specific goods

Answer 4

Identified and agreed upon at t.o.c.s.

Question 5

Ascertained goods

Answer 5

When out of a large quantity of unascertained goods, the number or quantity is identified.

Question 6

Future goods

Answer 6

To be manufactured / acquired by seller after making contract. Always an ‘agreement to sell’.

Question 7

Contingent goods

Answer 7

The acquisition of which depends on an uncertain contingency. Agreement to sell.

Question 8

Delivery

Answer 8

Voluntary transfer of possession from one person to another. Can be made by doing anything that has the effect of putting goods in possession of buyer.

Question 9

Actual delivery

Answer 9

Physical delivery. To person, or third person authorised to hold on behalf of buyer.

Question 10

Constructive delivery

Answer 10

Transfer without any change in custody as in case of delivery by attornment.

Question 11

Symbolic delivery

Answer 11

Delivery of goods in token of transfer of something else. Eg: Bill of lading, railway receipt, key of warehouse etc.

Question 12

Deliverable state of goods

Answer 12

When goods are in such a condition that the buyer would be bound to take delivery of them.

Question 13

Document of title

Answer 13

Document used in as proof of the possession of goods.

Question 14

Document showing title

Answer 14

Document showing entitlement to goods or property without having complete ownership or control of them.

Question 15

Contract of sale

Answer 15

When seller agrees to transfer the property in goods to the buyer for a price.

Question 16

Agreement to sell

Answer 16

Where transfer of property is to take place in future or is subject to some condition to be fulfilled.

Question 17

Elements of contract of sale

Answer 17

1. Buyer and seller; different people.
2. Only movable property.
3. Price; may be partly in price, partly in kind.
4. Transfer of property must take place.
5. May be absolute or conditional.
6. All aspects of valid contract must be present.

Question 18

Distinction b/w ‘sale’ and ‘agreement to sell’

Answer 18

1. Transfer of property
2. Nature of contract
3. Remedies for breach
4. Liability of parties
5. Burden of risk
6. Nature of rights ( jus in _ )
7. Right of resale
8. Insolvency of seller
9. Insolvency of buyer

Question 19

Hire purchase agreement

Answer 19

1. Possession is delivered on condition that periodical instalments be paid.
2. Property is passed upon payment of last instalment.
3. Purchaser may terminate agreement at any time before property so passes.

Question 20

Distinction b/w ‘sale’ and ‘hire purchase’

Answer 20

1. Time of passing of property
2. Position of party ( buyer - owner | bailee )
3. Termination of contract
4. Burden of insolvency of buyer
5. Transfer of title
6. Resale

Question 21

Distinction b/w ‘sale’ and ‘bailment’

Answer 21

1. Transfer of property
2. Return of goods
3. Consideration

Question 22

How may a contract of sale be made?

Answer 22

1. Offer to buy or sell goods and acceptance thereof.
2. Immediate delivery.
3. Immediate payment, future delivery.
4. Immediate delivery, immediate payment.
5. Delivery or payment or both in instalments.
6. Delivery or payment or both in future.

Question 23

Ascertainment of price

Answer 23

1. Fixed by contract.
2. Agreed to be fixed in a manner provided in
   contract. Eg: valuer
3. Determined by course of dealings.

Question 24

Agreement to sell at valuation

Answer 24

1. If valuer (or 3rd party) doesn’t or can’t make such valuation, agreement will be void.
2. If valuer is prevented from fixing price by default of either party, party at fault is liable to pay damages to the other.
3. Buyer who has received and appropriated goods must pay price in any eventuality.