Theory question 106
Law of ContractCommerce 2 (essay)
(a) Define a contract of sale.
(b) Outline six items that must be contained in a contract of sale.
Show the model answer
Model answer
(a) A contract of sale is an agreement by which a seller transfers, or agrees to transfer, ownership of goods to a buyer for a money consideration called the price.
(b) Any six: names and addresses of buyer and seller; description of the goods; quantity; quality/standard; price and terms of payment (discounts, credit); date and method of delivery; place of delivery; who bears transport and insurance costs; time when ownership passes; signatures of the parties/date of the contract; remedies in case of breach.
Explanation
Items in (b) are the terms both parties must agree on.