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CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods

Which statement about the form of a contract of sale of goods is correct, subject to any other law in force?

Subject to any law in force, a contract of sale may be made in writing, by word of mouth, partly in writing and partly oral, or be implied from the conduct of the parties. No single form is compulsory under the Act.

  1. AIt must always be in writing
  2. BIt may be in writing, by word of mouth, partly both, or implied from the conduct of the partiesCorrect
  3. CIt can be made only by word of mouth
  4. DIt can be made only by a stamped document

Explanation

Section 5(2) permits a contract of sale to be in writing, oral, partly written and partly oral, or implied from conduct, subject to any law in force. So insisting on writing or only oral form is wrong.

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