Essay on Business Law

Submitted By allyjones90
Words: 583
Pages: 3

There are 6 main characteristics involved in a contract of sale and they are as follow: 1. Contract of Sale:
A contract of sale of goods is a contract by which the seller transfers or agrees to transfer the property in goods to the buyer it is called contract of sale. 2. Buyer and Seller:
One person cannot become buyer and also seller; there are always two parties involved in contract of sale, buyer and seller. A buyer will be the consumer (a person who buy the good) and seller will be sells the goods. 3. Price:
The price in a contract of sale may be fixed by the contract, or may be left to be fixed in a manner agreed by the contract, or may be determined by the course of dealing between the parties. 4. Goods:
It is every kind of movable property which cannot be picked up and touched , incorporeal property is not classify as ‘goods’ for the purpose of the Sale Goods Act 1979. 5. Agreement to sell:
A contract between two parties in which one agrees to sell the good to the other at a date in the future the contract called agreement to sell. 6. Transfer of Ownership:
To constitute the sale contract, the seller must transfer or agree to transfer the property ownership to the buyer. So ownership and possession bot will be transferred to buyer.

1. Implied terms as to title:
In section 12(1) of the sale of goods act 1979, which provides that the seller implies that he, has a right to sell the goods. If any item is stolen, the original owner always entitled to its return even from someone purchasing the thing in the innocent belief that the seller was cover the owner. This term is a condition in all sales. Case summary Rowland v Divall (1923).
In section 12(2) provides that the goods shall be free from any charge or encumbrance not disclosed or known to the buyer before the contract was made that the buyer will enjoy quiet possession of goods. Case summary Microbeads V Vinhurst Road Markings Ltd (1975). 2. Sale by description:
Section 13 of the 1979 Act provides that where there is a contract for the sale of goods by description there is an implied term that the goods