With specific reference to sale of goods contract: Identify four essential characteristics of a sale of goods contract
Essential characteristics of a sale of good contract
- Seller – This is the person who sells or agrees to sell goods.
- Property –This is the general property in goods or ownership. It signifies the bundle of rights that a person has in relation to a subject matter E.g. Right to use, misuse and to dispose.
- Goods – this is includes
- All chattels personal other than things in action and money
- And all implements
- Industrial growing crops
- Things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.
Types of Goods
- Ascertained/Specific goods and Unascertained
- Existing and Future Goods
Specific or Ascertained Goods: These are goods that have specifically been identified and agreed upon by the parties at the time when the contract of sale is made. Other goods which haven’t been identified are unascertained goods
Existing Goods: These are goods owned or possessed by the seller at the time when the contract of sale is made.
Future Goods: These are goods to be manufactured or acquired by the seller after the contract of sale is made.
- Buyer – This is the person who buys or agrees to buy goods
- Price – This is the consideration that passes from the buyer to the seller to support the contract of sale of goods. The consideration must be monetary