CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods
Under Section 66(3), the Act's provisions relating to contracts of sale do not apply to:
The Act's provisions on contracts of sale do not apply to a transaction in the form of a sale that is intended to operate by way of mortgage, pledge, charge or other security. Instalments, postponed delivery and oral contracts remain valid sales.
- AA sale where delivery is postponed
- BA sale where payment is made by instalments
- CA transaction in the form of a contract of sale intended to operate by way of mortgage, pledge, charge or other securityCorrect
- DA sale made by word of mouth
Explanation
Section 66(3) excludes transactions in the form of a sale that are intended to operate as mortgage, pledge, charge or other security. Postponed delivery, instalments and oral sales are all expressly allowed by Section 5.
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