A contract of sale of goods is a legally binding agreement between a seller and a buyer. It outlines the terms and conditions of the sale of goods, including the price, delivery, and payment terms.
In Malaysia, a contract of sale of goods is governed by the Sale of Goods Act 1957. This law applies to all contracts for the sale of goods, whether they are made orally or in writing.
According to the Sale of Goods Act, a contract of sale of goods is a contract where the seller agrees to transfer the ownership of goods to the buyer for a price. The contract may be either express or implied.
An express contract of sale of goods is one where the terms of the contract are explicitly agreed to by both the buyer and seller. This can be done through a written contract or verbally.
An implied contract of sale of goods is one where the terms of the contract are not expressly agreed to but are implied by the conduct of the parties. For example, if a buyer places an order for goods and the seller fulfils that order, an implied contract of sale of goods is created.
Under the Sale of Goods Act, a contract of sale of goods must satisfy certain requirements. Firstly, the goods being sold must be specific, or at least identifiable. Secondly, the contract must be for a price, which can be either a fixed amount or determined by a specific formula. Finally, the ownership of the goods must be transferred from the seller to the buyer.
If any of these requirements are not met, the contract may be considered void or unenforceable.
In Malaysia, a breach of a contract of sale of goods may lead to legal action. The aggrieved party may seek damages or specific performance of the contract.
In conclusion, a contract of sale of goods is a legally binding agreement between a seller and a buyer that outlines the terms and conditions of the sale of goods. It is governed by the Sale of Goods Act 1957 in Malaysia and must satisfy certain requirements to be valid. It is essential for both parties to understand the terms of the contract before entering into it to avoid any legal complications in the future.