Div 2Formation of the contract

Division 2—Formation of the contract *Contract of Sale* No. 3694 s. 6. 6 Sale and agreement to sell (1) 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 money consideration called the price. There may be a contract of sale between one part owner and another. (2) A contract of sale may be absolute or conditional. (3) 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; but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled the contract is called an agreement to sell. (4) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred. No. 3694 s. 7. S. 7 amended by Nos 9075 s. 5(1), 9427 s. 5(Sch. 4 item 4). 7 Capacity to buy and sell Capacity to buy and sell is regulated by the general law concerning capacity to contract and to transfer and acquire property: Provided that where necessaries are sold and delivered to a minor or to a person who by reason of mental incapacity or drunkenness is incompetent to contract he must pay a reasonable price therefor. ***Necessaries*** in this section mean goods suitable to the condition in life of such minor or other person and to his actual requirements at the time of the sale and delivery. *Formalities of the Contract* No. 3694 s. 8. 8 Making of contract of sale Subject to the provisions of this Part and of any Act in that behalf a contract of sale may be made in writing (either with or without seal) or by word of mouth or partly in writing and partly by word of mouth or may be implied from the conduct of the parties: Provided that nothing in this section shall affect the law relating to corporations. S. 9 repealed by No. 35/1987 s. 9. *Subject-matter of Contract* No. 3694 s. 10.