CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930
Under the Sale of Goods Act, 1930, how is a contract of sale made?
A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of that offer. Delivery and payment may be immediate or postponed, so they are not needed to form the contract, and no registration is required.
- ABy an offer to buy or sell goods for a price and the acceptance of that offerCorrect
- BBy delivery of the goods alone, without any offer
- CBy payment of the price alone, without any acceptance
- DBy a written document registered with the court
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 such offer. Delivery or payment may follow later and are not what forms the contract. Registration is not required.
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