QUESTION 3

THE SALE OF GOODS ACT, 1930

Essentials of contract of sale:

(i) Essential elements of a valid contract

(ii) Two parties
(iii) Goods
(iv) Transfer of ownership
(v) Price

 Contract with an insolvent company is invalid as it violates the prerequisites to a

valid contract.

THE INDIAN CONTRACT ACT, 1872

Sec 211, Duties of an agent in conducting principal’s business

An agent is bound to conduct the business of his principal according to the directions given
by the principal, or, in the absence of any such directions, according to the custom which
prevails in doing business of the same kind at the place where the agent conducts such
business. When the agent acts otherwise, if any loss be sustained, he must make it good to
the principal, and, if any profit accrues, he must account for it.