Agreement Essay

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AGREEMENT TO SELL A sale must be distinguished from an agreement to sell. A sale is a contract under which the property in the goods is transferred from the seller to the buyer. On the other hand, an agreement to sell is a under which the transfer of the property in the goods Is to take place at a future time or subject to some condition thereafter to be fulfilled-section 4(3), SOGA 1957. An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred- section 4(4), SOGA 1957. FORMATION OF THE CONTRACT Formation A contract of sale is made by an offer to buy or sell goods at a price and by acceptance of such an offer: section 5(1), SOGA 1957. The contract may provide for the immediate delivery of the goods or the immediate payment of the price or both. Delivery or payment may even be by installments- section 5(1), SOGA 1957. ‘Price’ means the money consideration for the sale of goods. Thus, the price paid for the goods is the money consideration. Formalities A contract of sale may be made in writing or by word of mouth, or partly in writing and partly be word of mouth, or may be implied from the conduct of the parties- section 5(2), SOGA 1957. Price As seen earlier, a contract of sale is basically an offer to buy or sell goods for a price and the acceptance of such an offer. Price is the money consideration for the sale of goods. Price may be fixed in the following manner: 1. It may be fixed by contract 2. It may be left to be fixed manner agreed in the contract 3. It may be determined by the course of dealing between the parties. 4. Where the price is not determined in any one of the aforesaid ways, the buyer must pay a reasonable price is a question of fact dependent on the circumstances of each particular case- section 9, SOGA 1957. Capacity to

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