Sale of Goods Act Section 5 — Contract of sale how made

CHAPTER II FORMATION OF THE CONTRACT — Formalities of the contract

Commercial / Corporate

Summary

Sub-section (1) explains that a contract of sale is created when one party makes an offer to buy or sell goods for a price, and the other party accepts that offer. The contract can be set up in different ways: it may require the goods to be delivered immediately, the price to be paid immediately, or both. Alternatively, it can allow for delivery or payment to happen in instalments, or it can postpone delivery, payment, or both to a later time.

Sub-section (2) states that, as long as it complies with any other laws that are currently in force, a contract of sale can be made in writing, by spoken words, or partly in writing and partly by spoken words. It can also be implied from the conduct of the parties involved, meaning that their actions can show that a contract exists even if nothing is said or written.

Official Text

(1) A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer. The contract may provide for the immediate delivery of the goods or immediate payment of the price or both, or for the delivery or payment by instalments, or that the delivery or payment or both shall be postponed.

(2) Subject to the provisions of any law for the time being in force, a contract of sale may be made in writing or by word of mouth, or partly in writing and partly by word of mouth or may be implied from the conduct of the parties.