Sunday, July 17, 2011

Formalities

A contract of sale may be made in writing , by word of mouth , partly in writing and partly by word of mouth , or may be implied from the conduct of the parties ( section 5 (2) .

Terms of the Contract
Contractual terms may be 'express' or implied' . Traditionally the terms of a contract are classified into :

  1. Conditions- terms that are essential to the main purpose of the contract  , the breach of which gives rise to a right to repudiate the contract ( section 12 (2) )
  2. Warranties - terms that are collateral to the main purpose of the contract , the breach of which gives rise to the claim for damages but not the right to reject the goods and repudiate the contract . ( section 12 (3) .

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