The Sale of Goods Act is a crucial law that influences how goods are bought and sold across various markets. Grasping its essential concepts helps both buyers and sellers navigate commercial transactions confidently. Key aspects of this legislation include contracts of sale, conditions and warranties, passing of property, title transfer, contract performance, rights of unpaid sellers, and remedies for breaches. This post aims to clarify these concepts and empower stakeholders to make better decisions.

The Contract of Sale

At the core of the Sale of Goods Act is the contract of sale, which is a legal agreement between a buyer and a seller concerning the transfer of goods ownership. For a contract to be valid, it must meet several key criteria:

1. Offer and Acceptance: The seller offers goods for sale, and the buyer agrees to the terms. For instance, if a car dealer offers a vehicle at a set price and a buyer accepts it, a contract is formed.

   
   

2. Consideration: The buyer usually pays money in exchange for the goods. This exchange is essential for the contract's enforcement.

   
   

3. Intention to Create Legal Relations: Both parties must intend for the agreement to be legally enforceable. Casual discussions may not qualify as a binding contract.

   
   

4. Capacity to Contract: Both parties must have the legal ability to enter the agreement. For example, a contract made with a minor may not be valid.