- Parties are invariably the buyer and the seller. The seller sells or agrees to sell while the buyer buys or agrees to buy goods.
- Transfer or passing of property from the seller to the buyer. Property in goods must pass from the seller to the buyer.
- It always involves goods e.g. personal chattels, emblements industrial growing crops etc.
- It is characterized by price. This is the consideration provided by the buyer to support the contract. It must be monetary in character.
- The contract may be oral, written or implied from conduct of the parties.
- Both parties must have the requisite capacity.