(a) Define a contract of sale (b) Outline six items that must be contained in...
(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.