Contract of Sale of goods:

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.

In other words, under a contract of sale, a seller in the capacity of the owner, or part-owner of the goods, transfers or agrees to transfer the ownership in goods to the buyer for an agreed upon value in money, called the price, paid or the promise to pay same.

Essential elements of a Contract of Sale:

·         Goods

·         Price

·         Two parties

·         Transfer of ownership

·         All Essentials of a Valid Contract of Sale

·         Includes both a ‘sale‘ and ‘an agreement to sell‘

Definition of Goods:

2(7) "goods" means every kind of moveable property other than actionable claims and money; and includes electricity, water, gas, stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;

Subtypes of Goods:

1. Existing Goods.

·         Specific Goods.

·         Ascertained Goods.

·         Unascertained Goods:

2. Future Goods.

3. Contingent Goods.