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CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930

Rohit walks into a grocery store, picks up a packet of tea, places the price on the counter, and the shopkeeper takes the money without either of them saying a word. Under the Sale of Goods Act, 1930, this contract of sale:

The contract is valid because it can be implied from the conduct of the parties. The Act allows a sale to be made in writing, orally, partly both, or by conduct, so silence with actions of payment and acceptance is enough.

  1. AIs void because it was not made in writing
  2. BIs void because there was no oral offer and acceptance
  3. CCan be implied from the conduct of the partiesCorrect
  4. DIs valid only if the shopkeeper issues a written receipt

Explanation

Section 5(2) says that, subject to any law in force, a contract of sale may be made in writing, by word of mouth, partly in both, or may be implied from the conduct of the parties. Here the conduct shows offer and acceptance, so the sale is valid.

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