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

Under the Sale of Goods Act, 1930, a contract of sale is made by:

A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of that offer. Delivery or payment may be immediate, by instalments or postponed, and writing or registration is not required.

  1. AAn offer to buy or sell goods for a price and the acceptance of such offerCorrect
  2. BDelivery of goods by the seller, whether or not any price is agreed
  3. CPayment of the price in cash at the time of the transaction only
  4. DA written agreement signed by both parties and registered

Explanation

Section 5(1) says a contract of sale is made by an offer to buy or sell goods for a price and the acceptance of that offer. Immediate delivery or payment is possible but not essential, and the Act does not require writing or registration, so the other options are wrong.

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