Section 3Part 2 — Formation of the Contract
Sale and agreement to sell
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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 money consideration, called the price. There may be a contract of sale between one part owner and another.
A contract of sale may be absolute or conditional.
Where, under a contract of sale, the property in the goods is transferred from the seller to the buyer the contract is called a sale; but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled the contract is called an agreement to sell.
An agreement to sell includes, where appropriate, a conditional sale agreement, a credit-sale agreement and a hire-purchase agreement.
Where by virtue of two or more agreements, none of which by itself constitutes a hire-purchase agreement, there is a bailment of goods and either the bailee may buy the goods, or the property therein will or may pass to the bailee, the agreements shall be treated as a single agreement made at the time when the last of the agreements was made.
An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred.
Defined Terms
saleagreement to sellpropertygoodscontract of sale