All questions of Unit 1: Formation of the Contract of Sale for CA Foundation Exam

“Goods’ have been defined under  2(7) of the Sale of Goods Act, 1930, to include every kind of movable property, including stocks, shares, crops, grass, severable objects, etc. It is supplemented by the definitions of movable and immovable property under  3(36) and  3(26) of the General Clauses Act, 1897. This paper lays down certain dilemmas that have not been resolved despite the definitions and examines the case laws that may shed light on the same. It also examines the difference between English and Indian law on this issue. Primarily, it seeks to clarify whether certain commodities such as electricity, lottery tickets, software programs, money. Etc can be included within the definition of “goods”.

Specific  goods identified and agreed upon at the time of a contract of sale is made. They are also called existing goods or ascertained goods. 

This kind of delivery involves the delivery of a thing in token of a transfer of some other thing. For example, the key of the godowns with the goods in it, when handed over to the buyer will constitute a symbolic delivery.

I think correct answer is b because it is not mentioned in the question that b has taken the delivery or not...

upvote my answer and report this question if you really find my answer helpfull

Risk of Loss in a Contract of Sale

Introduction
When a contract of sale is made, the risk of loss of goods is an important consideration. The risk of loss refers to the possibility that the goods may be damaged or destroyed before they are delivered to the buyer. This risk may arise while the goods are still in the possession of the seller or during their transportation to the buyer. The allocation of this risk between the parties to the contract can have significant legal and financial consequences.

Buyer's Obligation to Pay
In a contract of sale, the buyer is generally obligated to pay for the goods before they are delivered. However, the obligation to pay does not necessarily mean that the buyer bears the risk of loss. The risk of loss may be allocated differently depending on the terms of the contract and the applicable law.

Risk of Loss Before Delivery
If the goods are damaged or destroyed before delivery, the question arises as to who bears the risk of loss. Generally, the risk of loss is borne by the party who has legal title to the goods at the time of the loss. However, if the contract provides otherwise, the risk of loss may be allocated differently.

Goods Lying with the Seller
If the goods are lying with the seller and have not yet been delivered to the buyer, the risk of loss generally remains with the seller. This is because legal title to the goods has not yet passed to the buyer. Therefore, if the goods are damaged or destroyed while still in the seller's possession, the seller bears the risk of loss.

Buyer's Obligation to Insure
While the risk of loss may be allocated differently in different contracts, it is generally advisable for the buyer to insure the goods against loss or damage during transportation. This can help to protect the buyer's financial interests in case of loss or damage to the goods.

Conclusion
In a contract of sale where goods are lying with the seller, the risk of loss of goods will be borne by the buyer only if the contract specifically provides for this allocation of risk. Otherwise, the risk of loss remains with the seller until the goods are delivered to the buyer.

Not a Form of Delivery

There are different forms of delivery that can be used in legal transactions such as sales, leases, and assignments. These forms of delivery are important because they establish when and how transfer of ownership or possession occurs. The question asks which of the following is not a form of delivery, and the correct answer is option 'B' which is structured delivery. Let us explain why this is the case.

Forms of Delivery

1. Actual Delivery
Actual delivery is the physical transfer of the subject matter of the transaction from the seller to the buyer. This form of delivery is common in the sale of tangible goods such as cars, furniture, and machinery. Actual delivery occurs when the seller hands over the goods to the buyer, or when the buyer takes possession of the goods at the seller's premises.

2. Symbolic Delivery
Symbolic delivery is the transfer of possession of the subject matter of the transaction without the physical transfer of the goods. This form of delivery is common in the sale of intangible goods such as shares, bonds, and intellectual property. Symbolic delivery occurs when the seller hands over the key or document that represents the ownership or possession of the goods.

3. Constructive Delivery
Constructive delivery is the transfer of possession of the subject matter of the transaction through the control of a third party. This form of delivery is common in the sale of goods stored in a warehouse, where the buyer takes possession of the goods by controlling the warehouse operator. Constructive delivery occurs when the seller notifies the buyer that the goods are available for pickup, and the buyer takes control of the warehouse operator.

4. Structured Delivery
Structured delivery is not a form of delivery used in legal transactions. It is not related to the transfer of ownership or possession of the subject matter of the transaction. Therefore, option 'B' is the correct answer to the question.

Conclusion

In summary, delivery is an important aspect of legal transactions that establishes the transfer of ownership or possession of the subject matter of the transaction. There are different forms of delivery, including actual delivery, symbolic delivery, and constructive delivery. Structured delivery is not a form of delivery used in legal transactions.

Symbolic delivery refers to delivery of goods by way of gift or sale, when it is either inaccessible or cumbersome. Goods under symbolic delivery are offered through substitute article that indicates the donative's intent of the donor or seller and is accepted as the representative of the original item.

The seller can always claim the benefit of doctrine of Caveat Emptor i.e. let the buyer be aware.At the time of purchasing goods from X, Z pointed out that they were infected with white ants so Z can return them to X as he had beenbeware and diligent.On the other hand X had already purchased the goods from Yand did not make any complain about the papers being infected .Therefore, X cannot now return the goods to Y.

Agreement to sale is made for future goods if the buyer become insolvent the seller won't supply goods instead of claim hence the contract become void

In agreement to sale ,sale is made on same future date .ln hire purchase agreement possession of goods transfers to person after payment of last installment. and in case of bailment bailor gives the goods to bailee on the condition that he must return the goods after performance of specific act for which bailment is made.
because of all this reasons sale is different.

Conditions and Warranties:

Conditions and warranties are the terms of a contract. They define the rights and obligations of the parties to the contract. A condition is a term that is essential to the contract. A breach of a condition allows the innocent party to terminate the contract and claim damages. A warranty is a term that is not essential to the contract. A breach of a warranty allows the innocent party to claim damages but does not allow them to terminate the contract.

Forms of Conditions and Warranties:

Conditions and warranties can be expressed or implied in a contract. Express conditions and warranties are those that are expressly stated in the contract. Implied conditions and warranties are those that are not expressly stated but are implied by law or by the circumstances of the contract.

Either (a) or (b):

As per the Indian Contract Act, conditions and warranties may be expressed or implied. Therefore, the correct answer to the given question is option (c) either (a) or (b).

Conclusion:

In conclusion, conditions and warranties are the terms of a contract that define the rights and obligations of the parties to the contract. They can be expressed or implied in a contract. The correct answer to the given question is option (c) either (a) or (b).

In the case of a sale, the buyer can pass a good title to a bonafide purchaser from him but in a hire-purchase, the hirer cannot pass any title even to a bonafide purchaser.

Contract of Sale is both an executory and executed contract.

Executory Contract
An Executory Contract is a contract in which one or both parties have yet to perform their obligations. In a Contract of Sale, it is an Executory Contract because the seller has an obligation to deliver the goods, and the buyer has an obligation to pay the price.

Executed Contract
An Executed Contract is a contract in which both parties have fulfilled their obligations. In a Contract of Sale, it is an Executed Contract when the seller has delivered the goods, and the buyer has paid the price.

Contract of Sale
A Contract of Sale is a legal agreement between a buyer and a seller, where the seller promises to deliver the goods, and the buyer agrees to pay the price. The agreement is typically in writing and outlines the terms and conditions of the sale, such as the price, quality, and quantity of the goods.

Conclusion
In conclusion, a Contract of Sale is both an Executory and Executed Contract. It is an Executory Contract until both parties fulfill their obligations, at which point it becomes an Executed Contract.

**Explanation:**

The given scenario involves an exchange of goods and cash between two parties. Let's analyze each option to determine which one best describes the situation:

**a) Barter:**
In a barter system, goods are exchanged directly without the use of money. In this case, although goods are being exchanged, there is also cash involved. Thus, it cannot be considered as a barter.

**b) Agreement to Sale:**
An agreement to sale is a preliminary stage before the actual sale takes place. It is a contract where the seller agrees to transfer the ownership of goods to the buyer at a future date, subject to certain conditions. This option seems applicable to the given scenario as X agrees to deliver the computer sets in the future in exchange for the fridge sets and cash.

**c) Executed Contract of Sale:**
An executed contract of sale means that the sale transaction has already been completed, and the ownership of goods has been transferred from the seller to the buyer. In this case, the transaction is not yet completed as the delivery of computer sets is scheduled for the future. Therefore, it is not an executed contract of sale.

**d) Sale:**
A sale refers to the transfer of ownership of goods from the seller to the buyer in exchange for a price. While there is a transfer of goods and cash involved in this scenario, it is not an immediate transfer of ownership. The delivery of computer sets is yet to be made in the future. Hence, it cannot be considered a sale.

Based on the analysis, option **b) Agreement to Sale** is the most appropriate choice as it accurately describes the situation where X agrees to deliver the computer sets in the future in exchange for the fridge sets and cash.

Insolvency is the legal term describing the situation of a debtor who is unable to pay his, her, or its debts. There are two primary types of insolvency: cash flow and balance sheet.In cash flow insolvency, the debtor suffers from a lack of financial liquidity making it impossible to pay debts as they fall due. This is the type of insolvency most individuals experience prior to filing for bankruptcy.Balance sheet insolvency, on the other hand, involves having negative net assets, where one's liabilities exceed their assets. This is the form of insolvency normally described by corporate entities prior to filing for bankruptcy.

Bill of lading:
- A bill of lading is a document issued by a carrier (such as a shipping line or airline) to acknowledge receipt of goods for shipment.
- It serves as evidence of the contract of carriage, receipt of the goods, and title to the goods.
- The bill of lading contains information such as the names of the shipper and consignee, the description and quantity of goods, the vessel or flight details, and the terms and conditions of the contract of carriage.
- It is commonly used in international trade and is often required by banks for financing purposes.
- The bill of lading can be negotiable or non-negotiable. A negotiable bill of lading allows the goods to be transferred to a third party by endorsement and delivery of the original document, while a non-negotiable bill of lading does not allow for such transfer.

Dock warrant:
- A dock warrant is a document issued by a warehouse operator or dock authority to acknowledge the receipt of goods for storage.
- It is used when goods are stored in a bonded warehouse or a public warehouse.
- The dock warrant serves as proof of ownership or title to the goods and can be used to transfer the goods to another party.
- It contains information such as the name of the warehouse operator, the description and quantity of goods, and the terms and conditions of storage.

Railway receipt:
- A railway receipt is a document issued by a railway company to acknowledge the receipt of goods for transport by rail.
- It serves as evidence of the contract of carriage, receipt of the goods, and title to the goods.
- The railway receipt contains information such as the names of the consignor and consignee, the description and quantity of goods, the train details, and the terms and conditions of the contract of carriage.
- It is commonly used for domestic transportation of goods by rail.

All the above:
- The correct answer is option 'D' because all three documents, i.e., bill of lading, dock warrant, and railway receipt, serve as documents of title of goods.
- They are issued by different carriers or warehouse operators to acknowledge the receipt of goods, provide evidence of ownership or title, and facilitate the transfer or transport of goods.
- These documents are essential in trade and commerce as they establish the rights and obligations of the parties involved in the transportation or storage of goods.

Unpaid Seller's Right of Stoppage of Goods in Transit

The right of stoppage in transit refers to the right of an unpaid seller to stop the goods while they are in transit to the buyer and to resume possession of the goods until payment or tender of the price. This right is available to the unpaid seller only in certain circumstances.

Circumstances under which the unpaid seller has the right of stoppage in transit:

1. Buyer becomes insolvent:
The unpaid seller has the right of stoppage of goods in transit only where the buyer becomes insolvent. Insolvency refers to a situation where the buyer is unable to pay his debts as they become due. In such a case, the unpaid seller can stop the goods in transit and demand payment of the price before delivering the goods to the buyer.

2. Buyer refuses to pay the price:
If the buyer refuses to pay the price of the goods, the unpaid seller can exercise his right of stoppage in transit. However, the right can be exercised only if the seller has a lien on the goods or the buyer has become insolvent.

3. Buyer acts fraudulently:
The unpaid seller can exercise his right of stoppage in transit if the buyer has acted fraudulently in relation to the goods. For example, if the buyer has obtained the goods by means of fraud or misrepresentation, the unpaid seller can stop the goods in transit.

Conclusion:
In conclusion, the unpaid seller has the right of stoppage of goods in transit only where the buyer becomes insolvent. The right can also be exercised if the buyer refuses to pay the price and the seller has a lien on the goods or the buyer has become insolvent. Finally, the right can be exercised if the buyer acts fraudulently in relation to the goods.

An auction sale is complete on the fall of hammer. This means that the sale is considered final and binding at the moment the auctioneer's hammer falls, indicating that the highest bidder has successfully won the item being auctioned.
Here is a detailed explanation of why the answer is C:
Definition of auction sale:
- An auction sale is a public sale in which goods or property are sold to the highest bidder.
Explanation of the options:
A: Delivery of goods
- Delivery of goods usually occurs after the auction sale is complete and the buyer has made the payment. It is not the event that signifies the completion of the auction sale.
B: Payment of price
- Payment of price is indeed an important part of the auction process, but it does not signify the completion of the auction sale. The sale is still considered ongoing until the fall of the hammer.
C: Fall of hammer
- The fall of the hammer is the moment when the auctioneer declares the item sold to the highest bidder. It indicates the completion of the auction sale and the transfer of ownership from the seller to the buyer.
D: None of the above
- Since the correct answer is C, option D is incorrect.
Conclusion:
In an auction sale, the completion of the sale is marked by the fall of the hammer. This event signifies that the highest bidder has successfully won the item being auctioned and the sale is considered final and binding.

D) Warehouse Keeper

Hire-purchase agreement and the Hirer's option to buy

A hire-purchase agreement is a type of agreement where the owner of goods allows the hirer to use the goods for a specified period of time in exchange for regular payments. The hirer does not own the goods until the final payment has been made. At the end of the agreement, the hirer is given the option to buy the goods.

Option to buy

The hirer has the option to buy the goods at the end of the hire-purchase agreement. This means that the hirer can choose whether or not to buy the goods. The hirer is not obligated to buy the goods and can choose to return them instead.

Ownership of goods

During the hire-purchase agreement, the owner of the goods retains ownership until the final payment has been made. This means that the hirer does not own the goods until the final payment has been made and the option to buy has been exercised.

Conclusion

In a hire-purchase agreement, the hirer has the option to buy the goods at the end of the agreement. The hirer is not obligated to buy the goods and can choose to return them instead. During the agreement, the owner of the goods retains ownership until the final payment has been made.

Essential Elements of a Contract of Sale

A contract of sale is an agreement between two parties, wherein one party (seller) agrees to transfer ownership of goods to the other party (buyer) for a price. The essential elements of a contract of sale are as follows:

1. Two parties: A contract of sale requires two parties, namely the seller and the buyer.

2. Offer and acceptance: There must be an offer made by the seller and acceptance by the buyer. Both parties must agree to the terms and conditions of the contract.

3. Consideration: Consideration refers to the price that the buyer agrees to pay to the seller in exchange for the goods.

4. Capacity to contract: Both parties must have the capacity to enter into a contract. This means that they must be of the legal age, sound mind, and not disqualified by law.

5. Free consent: The consent of both parties must be free from coercion, undue influence, fraud, misrepresentation, or mistake.

6. Object: The subject matter of the contract must be goods. Goods refer to movable property that is capable of being bought and sold.

7. Intention to create legal relations: The parties must have the intention to create legal relations. This means that they must intend to be legally bound by the terms and conditions of the contract.

Why Option 'B' is not an Essential Element of a Contract of Sale?

Option 'B' states that payment of price at the time of contract is an essential element of a contract of sale. However, this is not entirely true. While it is true that consideration is an essential element of a contract of sale, it is not necessary for the payment to be made at the time of contract. The parties may agree on a deferred payment or payment in installments.

Thus, Option 'B' is not an essential element of a contract of sale because the time of payment can be agreed upon by the parties and may not necessarily be at the time of contract.

Explanation:

The question is related to the concept of sale of goods and different types of contracts related to it. Let us discuss each option one by one:

A) Sale: Sale is a contract in which the seller transfers the ownership of goods to the buyer for a price. In a sale, the property in goods passes from the seller to the buyer immediately at the time when the contract is made. The buyer becomes the owner of the goods as soon as the contract is concluded.

B) Agreement to Sell: An agreement to sell is a contract in which the seller agrees to transfer the ownership of goods to the buyer at a future date or on the happening of a certain event. In this type of contract, the property in goods does not pass to the buyer immediately. It will pass only when the conditions mentioned in the contract are fulfilled. An agreement to sell is also known as a conditional sale.

C) Hire-Purchase Contract: A hire-purchase contract is a type of agreement in which the seller agrees to transfer the ownership of goods to the buyer only when the buyer pays the total price in installments over a period of time. In this type of contract, the property in goods remains with the seller until the buyer makes the final payment. Hire-purchase contracts are commonly used for the sale of expensive items like cars, furniture, etc.

D) Sale on Approval: Sale on approval is a type of contract in which the buyer is given the opportunity to inspect the goods before making the final decision to buy them. The buyer can use the goods for a certain period of time and then decide whether to buy them or not. In this type of contract, the property in goods does not pass to the buyer until he/she approves the sale.

Answer: The correct answer is option B, i.e., agreement to sell. In an agreement to sell, the property in goods does not pass to the buyer immediately. It will pass only when the conditions mentioned in the contract are fulfilled.

Property refers to ownership. Ownership is transferred when you buy goods

Once a property is passed to the buyer, then the risk in the goods sold is that of the buyer and not the seller. This is true even if the goods are in the possession of the seller. Let us learn more about the passing of property in the Sale of Goods Act.

Contracts or agreements related to the sale of goods are governed under the Sale of Goods Act 1930. This act came into effect on the 1st of July 1930 in the whole of India except the state of Jammu and Kashmir. Let us learn some important definitions and provisions of the act.

Document of Title and Title

The statement "document showing title is different from document of title" is not true. A document of title is a legal document that represents ownership of goods, while a document showing title is a legal document that represents ownership of property. These two concepts are not interchangeable.

Bill of Lading

A bill of lading is a document of title to goods. It is a legal document that represents ownership of the goods being shipped. The bill of lading serves as a receipt for the goods and provides evidence of the contract of carriage between the shipper and the carrier.

Agreement at the Time of Contract

Agreement at the time of the contract of sale is an essential element of a valid contract. The parties must agree on the terms of the sale, including the price, quantity, and delivery terms. This agreement can be in writing or verbal, but it must be clear and unequivocal.

Conclusion

In conclusion, the correct answer is D, none of the above. All of the statements are true except for the first one. It is important to understand the difference between a document showing title and a document of title, as well as the role of a bill of lading in a sale of goods transaction. Finally, agreement at the time of the contract of sale is a crucial element in any sale of goods transaction.

'Goods' is defined as per Section 2 (7) of the 'Act' as. “Every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.

In this case buyer himself checked the wheat and he didn't ask any question whether it is earlier or recent.so he cannot returnthe goods he purchased as buyer should beware.

B) 1 July 1930

Constructive Delivery

Constructive delivery is a type of delivery of goods where the transfer of possession takes place without the physical movement of goods. In this case, the goods are not physically delivered to the buyer, but the possession is transferred to the buyer by means of a document or other symbolic representation of the goods.

Explanation

In the given scenario, Y purchased goods from X and asked Z to keep the goods. Y did not take the physical possession of the goods, but he transferred the possession to Z by asking him to keep the goods. This type of transfer of possession is known as constructive delivery.

Constructive delivery is also known as symbolic delivery because the transfer of possession is done by means of a symbol or document representing the goods. In this case, the symbol or document is the instruction given by Y to Z to keep the goods for him.

Conclusion

Therefore, the correct answer to the question is option 'A' - Constructive delivery. Constructive delivery is a valid mode of delivery of goods, and it is widely used in commercial transactions where the physical movement of goods is not possible or practical.

Because they contract with her/his to sell goods in future thatwise option B is the correct answer

Yes he can buy but after the agreement of absolute sale so they correct option b .otherwise option a is also correct

Liability in case of Agreement to Sell

Introduction:
An agreement to sell is a contract between a seller and a buyer where the seller agrees to sell the goods to the buyer at a future date or time. In case of an agreement to sell, the ownership of the goods still remains with the seller until the goods are actually delivered to the buyer.

Liability in case of Loss or Destruction of Goods:
If the goods covered under the agreement to sell are lost or destroyed before the delivery, the liability falls on the seller. The seller is responsible for any loss or damage to the goods until they are delivered to the buyer.

Reason for Liability on Seller:
The reason for this is that the seller still owns the goods until they are delivered to the buyer. Hence, it is the seller's responsibility to ensure that the goods are safe and secure until they are delivered to the buyer. If the goods are lost or destroyed due to the seller's negligence, the seller will be held liable.

Insurance:
However, if the seller has insured the goods, the insurance company will compensate the seller for the loss or damage to the goods. In this case, the liability does not fall on the seller but on the insurance company.

Conclusion:
In conclusion, in case of an agreement to sell, the liability for any loss or destruction of the goods falls on the seller until the goods are actually delivered to the buyer. If the seller has insured the goods, the liability falls on the insurance company.

Explanation:
An implied warranty is a legal term used to describe the responsibility of a seller to ensure that the goods they sell are fit for their intended purpose and free from defects. There are several types of implied warranties, but one of the options listed in the question is not considered an implied warranty.

Warranty as to undisturbed possession:
This is an implied warranty that guarantees that the buyer will not be disturbed in their possession or use of the goods by any third-party claims. In other words, the seller guarantees that there are no legal claims or encumbrances on the goods that would prevent the buyer from using or possessing them. This warranty ensures that the buyer will have full and uninterrupted use of the goods.

Disclosure of dangerous nature of goods:
This is also an implied warranty, but it is not related to the quality or fitness of the goods. Instead, it focuses on the seller's duty to disclose any dangerous or hazardous nature of the goods to the buyer. This warranty ensures that the buyer is aware of any potential risks associated with using or handling the goods.

Warranty as to quality or fitness by usage of trade:
This is another implied warranty that guarantees that the goods being sold are of a certain quality or fit for their intended purpose. It is based on the common practices or customs of the particular trade or industry. For example, if a buyer purchases a laptop from an electronics store, there is an implied warranty that the laptop will be of a certain quality and suitable for typical laptop usage.

Warranty as to existence of encumbrance:
This option is not an implied warranty. The existence of encumbrance refers to any claims, liens, or other legal restrictions on the goods being sold. While the seller may be required to disclose any encumbrances, it is not considered an implied warranty. The buyer has a separate responsibility to conduct due diligence and investigate any potential encumbrances on the goods before purchasing them.

Conclusion:
In summary, the option that is not an implied warranty is "Warranty as to existence of encumbrance." The other options listed in the question are all examples of implied warranties that protect the buyer's rights and ensure the quality, fitness, and safety of the goods being sold.

Explanation:
When a seller hands over the keys of a warehouse containing goods to the buyer, it is known as symbolic delivery. This means that the seller is symbolically transferring ownership and control of the goods to the buyer, even though the physical possession of the goods may not have been transferred yet.
Here is a detailed explanation:
1. Constructive delivery: This refers to a situation where the seller transfers ownership and control of the goods to the buyer without physically handing over the goods. It usually occurs when the goods are too large or impractical to be physically delivered. In this case, the seller has handed over the keys of the warehouse, indicating that the buyer now has control over the goods stored inside.
2. Actual delivery: This refers to the physical transfer of goods from the seller to the buyer. It involves the seller physically handing over the goods to the buyer or arranging for their transportation. In the given scenario, the keys of the warehouse have been handed over, but it does not necessarily mean that the goods themselves have been physically transferred.
3. Symbolic delivery: This is the correct answer. Symbolic delivery occurs when the seller uses a symbolic act or gesture to transfer ownership and control of the goods to the buyer. In this case, the act of handing over the keys of the warehouse represents the transfer of ownership and control of the goods stored inside.
4. None of the above: This option is incorrect as the situation described in the question falls under symbolic delivery.
Overall, when the seller hands over the keys of a warehouse containing goods to the buyer, it represents symbolic delivery, indicating the transfer of ownership and control of the goods.

C-sale

Explanation:

The correct answer is option 'B': An agreement to sell.

An agreement to sell refers to a contract where the seller agrees to transfer the ownership of goods at a later date, subject to certain conditions. In such a contract, the goods are unascertained, meaning they are not specifically identified or determined at the time of making the contract. The identification of the goods will occur at a later stage, typically before the actual transfer of ownership.

Let's break down the answer into headings and key points:

1. Definition of unascertained goods:
- Unascertained goods are goods that are not specifically identified or determined at the time of making the contract.
- The identification of the goods will happen at a later stage, usually before the transfer of ownership.

2. Definition of an agreement to sell:
- An agreement to sell is a contract where the seller agrees to transfer the ownership of goods to the buyer at a later date, subject to certain conditions.
- The transfer of ownership will occur once the goods are ascertained and the conditions specified in the contract are fulfilled.

3. Difference between sale and agreement to sell:
- In a sale, the ownership of the goods is immediately transferred from the seller to the buyer. The goods are ascertained and specifically identified at the time of making the contract.
- In an agreement to sell, the transfer of ownership is deferred until a later date, usually upon fulfillment of certain conditions. The goods are unascertained at the time of making the contract.

4. Contingent contract:
- A contingent contract is a contract that depends on the occurrence or non-occurrence of a specific event.
- While an agreement to sell may have some contingent elements, it is not primarily a contingent contract as it does not solely depend on the occurrence or non-occurrence of a specific event.

5. Wagering contract:
- A wagering contract is a contract where two parties agree to pay a sum of money or something of value based on the outcome of an uncertain event.
- An agreement to sell is not a wagering contract as it does not involve payment based on the outcome of an uncertain event.

In conclusion, when goods are unascertained, the correct contract is an agreement to sell. The transfer of ownership will happen at a later date once the goods are identified and the conditions specified in the contract are fulfilled.

Implied Conditions in a Contract of Sale

A contract of sale is an agreement between a buyer and a seller for the exchange of goods or services for a price. It involves certain implied conditions that are included in the contract even if they are not explicitly mentioned. These implied conditions are as follows:

1. Condition as to Title: The seller must have the legal right to sell the goods, and the buyer must receive a good title to the goods. This means that the seller must own the goods or have the authority to sell them.

2. Condition as to Description: The goods must correspond with the description given by the seller. If the goods do not match the description, the buyer has the right to reject them.

3. Condition as to Quality or Fitness: The goods must be of merchantable quality and fit for the purpose for which they are intended. If the goods are not of merchantable quality or do not fit for the intended purpose, the buyer has the right to reject them.

4. Condition as to Sample: If the goods are sold by sample, the goods delivered must correspond with the sample in quality and quantity.

Not an Implied Condition

Condition as to Free from Encumbrance is not an implied condition in a contract of sale. This means that the goods may be subject to certain encumbrances, such as mortgages or liens, which are not disclosed by the seller. If the buyer discovers any such encumbrances after the sale, they cannot reject the goods on this ground.

Conclusion

In conclusion, a contract of sale involves certain implied conditions that are included in the contract even if they are not explicitly mentioned. These conditions ensure that the buyer receives goods of a certain standard and quality. However, condition as to free from encumbrance is not an implied condition, and the buyer cannot reject the goods on this ground.

By transfer of tile

The main motive of a Contract of Sale is the passing of property and thus it implies ownership, merely possession may pass immediately or later also property=ownership + possession