Mamagement

1. A sale agreement being a contract in its nature reflects the essential elements in a contract agreement pursuant to the law of contract. Section 3(1) of the Sale of Goods Act describes the contract of sale in the following terms: ‘A contract of sale is a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for a money consideration, called the price.’ Under Section 3(4), where the transfer of property is to take place after the contract is concluded or subject to some condition to be fulfilled, the contract is called an agreement to sell. Under Section 3(4), where the transfer of property is to take place after the contract is concluded or subject to some condition to be fulfilled, the contract is called an agreement to sell.

 It must be noted that a contract of sale is a contract like any other; and that the general rules relating to contract formation in general apply to sales contracts as well. However, special legal rules apply to a sale contract. These are: 1. the contract must involve the transfer of property in the goods, in other words, the contract must transfer title and ownership thereof in the goods.2. The consideration must be a money consideration. Barter trade is excluded. 3. The goods which form the subject matter of sale must be movable goods. Formation of the Contract of Sale The contract of sale is formed under the ordinary rules of contract formation, i.e., offer, acceptance and consideration. As far as capacity is concerned.

 Section 4(1) provides that capacity to contract is governed by the general rules of contract law. These are the essential elements of a contract: a contract comes into existence when an offer by one party is unequivocally accepted by another and both parties have the requisite capacity. Some consideration must pass and the parties must have intended their dealings to give rise to a legally binding agreement. The purpose of the agreement must be legal and any necessary formalities must have been complied with.

The contract between Access motors Limited and Sharon Wangari in the form of a sale agreement is valid since all the elements of a valid contract have been met. First there is an offer made by Access Motor Limited to Sharon Wangari which she accepted it and made payments amounting to ksh 600,000/= which also happens to be the consideration.Sharon Wangari has the capacity  by being a holder of identification number 224594 which evidences that she is not a minor. The parties had intended the contract to be a legally binding agreement since there were conditions and attestation by witnesses and signing of the contract. Lastly the purpose of the agreement is legal since it involves sale of a car by a bonafide owner to a buyer with contractual capacity.