(a) Define a contract of sale
(b) Outline six items that must be contained in a contract sale.
Explanation
(a) Definition of a Contrat of sale : A contract of sale is an agreement whereby the seller transfers or agrees to transfer the right in the goods for an amount of money called the price.
(b) Content of a contract of sale
(i) Price:- The amount for which the goods are sold must be stated
(ii) Quality– Qualities must be stated where there are many types of the same goods, but the rule is caveat emptor – let the buyer beware.
(iii) Term of Payment: It must be stated whether it is cash and carry or on credit sales.
(iv) Means of Payment:- it should contain the payment method acceptable. credit cards cash money order, bank draft.
(v) Warranty:- TYhis is a guarantee from the seller to the buyer that the goods are in conformity with the quality staged.
(vi) Subject Matter: The item being sold must be stated so that the buyer can make himself available.
(viii) Quantity – This must be stated to show the quantity bought and the quantity to be delivered.
(ix) Packaging:-The type of packaging to be used should include the description of the goods.
(x) Delivery- How the goods are to be haded over to the buyer whether it should be actual, symbolic or constructive delivery.