Chapter 7

A contract where a seller transfers or agrees to transfer the property in goods to the buyer for a price.

In other words a contract to transfer the ownership of goods from the seller to the buyer is known as contract of sales.

1. Contract: All the essentials of valid contract like capacities of party, free consent, legality of object etc should be present in a contract of sales.

2. Two parties: there should be two parties to the contract of sales i.e. a buyer and a seller. One person cannot act as a buyer and seller however the an owner of one part can sell his share to the owner of the other part.

3. Transfer of Properties: Property here means ownership. Only transfer of possession of the goods cannot be termed as sales. To constitute a contract of sale the seller must either transfer or agree to transfer the property in the goods to the buyer. e.g. Ali sells his AC to Ahmad for 20000. the ownership and the possession of the AC will transfer from Ali to Ahmad.

4. Goods: the subject matter of contract of sale must be goods. Goods means every kind of movable property other than money; and includes electricity, water, gas, shares, growing crops and things to or forming part of the land which are agreed to be severed بريدن ، كردن before sale under جداthe contract of sale.

5. Price: The consideration in a contract of sales must be the price. When the goods are sold or exchanged for other goods the transaction is barter, and not a contract of sale of goods.

6. Sale and agreement to sell. The term contract of sale includes both

sale and agreement to sale. When the property in goods is transferred from seller to the buyer at the time of formation of contract, the contract is called sale.

Where under the contract of sale the transfer of ownership in goods is to be transferred from seller to the buyer at some future date, the contract is called an agreement to sale.