Part 1
Formation of the contract

Contract of sale

3 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.

    (2) There may be a contract of sale between one part owner and another.

    (3) A contract of sale may be absolute or conditional.

    (4) 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.

    (5) 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.

    Compare: 1895 No 23 s 3