A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in

goods to the buyer for a price. [Sec. (4) 1].

Important features of a contract of sale:
(1) Two Parties: The first essential is that there must be two distinct parties to a contract of sale, viz, a
buyer and a seller, as a person cannot buy his own goods. However, there may be a contract of sale
between one part-owner and another part-owner [Section 4(1)]. A partner may, therefore, buy the goods
from the firm in which he is a partner and vice-versa.
(2) Mutual Consent: Just the presence of two parties is not sufficient. The parties must agree on the
transfer of property
. (3) Transfer of Property: What a contract of sale stipulates is the transfer of property i.e. the ownership of
the goods and not the possession of the goods.
(4) Goods: Goods means every kind of movable property other than actionable claims and money. But it
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. [Sec. 2(7)]. Since the price of the goods is
expressed in terms of the money, money itself cannot be bought, and hence, money is not considered as
goods.
(5) Price: Under a contract of sale, property in the goods is transferred to the buyer for a price. Price is the
money consideration for the goods. (
6) Varied requirement as to delivery and payment: The contract may provide for the immediate delivery
of goods or immediate payment of the price or both,
(7) Requires no formalities: (Sec.5) The sale of goods act does not provide for a valid contract; mere offer
and acceptance thereof forms a contract; it can be made either of the two and accepted by the other. Neither
the payment nor delivery is necessary at the point of making the contract. It can either be verbal or in writing
or both or understood through the conduct of parties involved.
(8) Absolute or Conditional: An absolute contract of sale is technically called a sale. Thus where under
a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a
sale[Sec 4 (3)]. Thus a contract of sale is a generic term including Sale as well as an agreement to
sell.