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CA Foundation · Business Laws · The Sale of Goods Act, 1930

Rajesh purchased a laptop from an electronics store in Mumbai. The invoice shows the serial number, specifications, and price of ₹65,000. The seller assured him that it was 'brand new' but did not provide any written warranty. Three weeks later, the laptop stopped working. When Rajesh complained, the seller claimed there was no contract between them. Under the Sale of Goods Act, which statement best reflects the legal position?

A contract of sale exists because the Sale of Goods Act does not prescribe any particular form for a sale contract. The transaction has all essential elements: specific goods, price, and delivery, making it a valid sale regardless of whether a written warranty was provided.

  1. AThere is no contract because the seller did not provide a written agreement
  2. BA contract of sale exists because all essential elements of a sale are present regardless of the form of agreementCorrect
  3. CA contract of sale exists only if the seller's name and buyer's name are printed on the invoice
  4. DThere is a contract of sale only if Rajesh paid by cheque or bank transfer

Explanation

A contract of sale under the Sale of Goods Act does not require a specific form—it can be oral, written, or implied from conduct. Here, all essential elements exist: identified goods (the specific laptop), fixed price (₹65,000), and acceptance by delivery and payment. The absence of a formal agreement or warranty document does not negate the contract. The seller's claim is legally untenable.

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