(a) What is a contract of sale of goods? (b) State any three of its provisions. (c) Explain two conditions that constitute acceptance in the contract of sal...

Answer Details

(a) What is a contract of sale of goods?

A contract of sale of goods is an agreement by which the seller transfers, or agrees to transfer, the ownership (property) in goods to the buyer for a money consideration called the price. It is a legally binding agreement between a seller and a buyer for the exchange of goods for money.

(b) Three provisions of a contract of sale of goods

1. There must be goods which form the subject matter of the sale.
2. There must be a price in money to be paid for the goods.
3. There must be two competent parties, a seller and a buyer, who agree to the transfer of ownership.

Other provisions include an offer and acceptance, and the intention to transfer ownership from the seller to the buyer.

(c) Two conditions that constitute acceptance in the contract of sale of goods

1. When the buyer intimates his acceptance: Acceptance takes place where the buyer, after examining the goods, tells the seller (expressly) that he has accepted them.
2. When the buyer does an act inconsistent with the seller's ownership: Acceptance is implied where the buyer keeps, uses, resells or otherwise treats the goods as his own, or where he retains the goods beyond a reasonable time without rejecting them.