Question

Which of the following is not an essential for a valid sale:

• A. The parties must be competent to contract
• B. There must be mental consent
• C. There must be a transfer of property
• D. There must be an agreement to sell

Hint:

Clearly distinguish between a 'Sale' and an 'Agreement to Sell'. In a Sale, ownership and risk pass immediately to the buyer. In an Agreement to Sell, ownership and risk remain with the seller until the future date or condition is met.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
The question asks to identify which of the given conditions is not an essential element for a contract of sale to be valid, according to the Sale of Goods Act, 1930.

Step 2: Key Legal Provision:
Section 4 of the Sale of Goods Act, 1930, defines "Sale" and "Agreement to sell."

Step 3: Detailed Explanation:
The essential elements of a valid contract of sale include:
1. Parties: A competent buyer and seller (Option A is essential).
2. Consent: Free and mutual consent of the parties (Option B is essential).
3. Goods: The subject matter must be movable goods.
4. Transfer of Property: The ownership (general property) in the goods must be transferred from the seller to the buyer (Option C is essential).
5. Price: The consideration must be money.
Let's analyze option (D). Section 4 of the Act makes a clear distinction between a 'sale' and an 'agreement to sell'.
- A sale is an executed contract where the ownership of goods is transferred immediately.
- An agreement to sell is an executory contract where the transfer of ownership is to take place at a future time or subject to some condition.
A sale is the completed transaction itself. An "agreement to sell" is a prior stage or a different type of contract. Therefore, a pre-existing "agreement to sell" is not an essential element for a sale to occur; a sale can happen on the spot without a formal prior agreement.

Step 4: Final Answer:
"There must be an agreement to sell" is not an essential for a valid sale because a sale is an executed contract, distinct from an executory agreement to sell.