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CMA Intermediate · Business Laws and Ethics · Sale of Goods Act, 1930

Which of the following statements about the making of a contract of sale under the Sale of Goods Act, 1930 is correct?

A contract of sale may be made in writing, by word of mouth, partly in each, or be implied from the parties' conduct, subject to any law in force. Immediate delivery or payment is not required, as either may be postponed or made by instalments.

  1. AIt must always be in writing
  2. BIt may be made in writing, by word of mouth, partly both, or implied from the conduct of the parties, subject to any law in forceCorrect
  3. CIt can be made only if delivery and payment are both immediate
  4. DIt is valid only if the price is paid in advance

Explanation

Section 5 states that a contract of sale is made by offer and acceptance, and subject to any law in force it may be in writing, oral, partly each, or implied from conduct. It also allows delivery or payment to be immediate, by instalments or postponed, so the other options are wrong.

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