Question

True or False. When a buyer has a property interest in goods when the seller indicates that certain goods are the ones to be delivered to the buyer under the contract.

Answer 1

Statement is false as the contract of sale of goods is not complete unless price is specified.

A 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.

Essentials Elements of valid contract includes free consent, consideration, competency of the parties, lawful object and consideration

Two parties

There must be two parties seller and buyer to form a valid contract. The ownership will transfer from seller to buyer.

Goods  
There must be some goods as a subject-matter. Goods must be one which is defined as goods in Sec. 2(7) of the Sale of Goods Act. As per the definition given in Sec. 2(7) of the Act, goods means every kind of movable property and it includes stock and share,growing crops, grass,
the things attached to or forming a part of the land which can be severed from the land.

Transfer of ownership.

To make a valid contract there should be agreement to transfer the ownership from seller to buyer.The property in the goods means “all ownership rights” of the goods. In a contract of sale, all the ownership rights of the goods must be transferred by the seller to the buyer. However, the physical delivery of the goods is not required.

Price

Another essential element of a contract of sale is that there must be some price for the goods. That means, the goods must be sold for some price. According to Sec. 2(10) of the Sale of Goods Act, the term price means the money consideration for a sale of goods. The price should be in terms of money. If the consideration is not in money then it will not be regarded as contract of sale but exchange. However, consideration can be partly in money and partly in goods.